Ed Ludlow

On Terafabs specifically, you and the team at Arc know full well a fab at that scale is a fixed cost of $20 to $30 billion.

And the CFO was clear this is not reflected in their CapEx forecast.

But there's a reason that the industry doesn't put memory, logic, and packaging on one site.

That doesn't exist.

But it is Musk's proposal.

How seriously are you taking that?

Well, I think, you know, he's always been a very ambitious CEO.

I would interpret this as, look, he's concerned Tesla needs a lot of chips.

They have grand ambitions for AI data centers in space.

We think, you know, that could be a really interesting play, especially as launch costs continue to decline.

It could actually be cheaper than data centers on Earth.

So, you know, I think the way to interpret it is that he knows that he needs a lot of chips.

We've seen him vertically integrate in the past in the electric vehicle business, for instance, and parts of the supply chain that he did not see popping up in the U.S.

that they needed in the U.S.

So, you know, I think this sort of fits in with what he's done in the past, albeit a

But yes, it's a major announcement for Tesla.

So I'd say broadly that like I would interpret some of it as a call to action that, you know, he is looking out there at the supply chain.

But yes, for now, they have this very ambitious plan.

And again, I would focus on the at least from evaluation perspective on the robo taxi picture here.

Of course, they'll also use those chips for Optimus.