Intel Gains A Crucial Outside Customer
Intel's role in Terafab first surfaced earlier this month, when Reuters reported that Tesla and Musk-controlled SpaceX planned two advanced chip factories in Austin to make processors for vehicles, humanoid robots and space-oriented data centers.
That dynamic was reflected in after-hours trading, where Intel shares climbed roughly 3.14% following Musk’s comments that Tesla plans to adopt Intel’s next-generation manufacturing process for its in-house AI chips.
Tesla Lifts Spending For Austin Ambitions
On Wednesday, Tesla also raised its 2026 capital-spending plan to more than $25 billion from $20 billion, with Musk saying the higher outlay was needed to support future revenue streams.
Musk said, "Given that by the time Terafab scales up, 14A will be probably fairly mature or ready for prime time," adding, "14A seems like the right move, and we have a great relationship with Intel."
Tesla reported first-quarter revenue of $22.71 billion, up 16% year-over-year. Revenue missed the Street consensus estimate of $22.39 billion.
Analysts See Upside Despite Open Questions
Analysts said the announcement matters even with unanswered questions. Ben Bajarin of Creative Strategies told Reuters Intel's 14A "could turn out to be a bigger deal for Intel than folks thought," saying early design partners help refine leading-edge manufacturing and that Tesla "will definitely have scale, so a great first non-Intel customer."
Seaport Research Partners analyst Jay Goldberg said, "Having a customer is more important than the timing," and added that even if Musk's robot-driven chip-demand forecasts prove too ambitious, supplying Tesla's current businesses would still mean "real volumes" for Intel.
Price Action: Tesla stock was up 0.28% during regular trading and down 0.31% at $386.30 in after-hours trading on Wednesday, according to Benzinga Pro data.
TSLA shows a strong ‘Quality’ score, according to Benzinga Edge Stock Ranking, but faces a negative short- to medium-term price trend.
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