So, Tesla Inc. (TSLA) is going deep into Taiwan's chip talent pool. Not for a vacation, but to hire engineers for its $25 billion Terafab project—because when you're building a vertically integrated semiconductor facility, you go where the expertise is. And that expertise, as anyone in tech knows, is heavily concentrated in Taiwan, home to giants like Taiwan Semiconductor Manufacturing Company Ltd. (TSM).
The electric vehicle maker has posted nine engineering roles in Taiwan, specifically targeting folks with over five years of experience in advanced chipmaking. According to reports, they're looking for skills across critical production stages: lithography, etching, thin-film processing, and yield engineering. It's a classic move: if you want to build something big in chips, you tap into the local talent that's been doing it for decades.
What's Terafab All About?
Terafab isn't just another factory; it's Elon Musk's vision for a semiconductor powerhouse that combines logic, memory, packaging, testing, and lithography mask production under one roof. Unveiled by the CEO himself, the facility is designed to support AI-driven applications across robotics and data centers. Think chips for everything from edge inference processors to satellite-grade semiconductors and high-bandwidth memory. In a world where chip demand is soaring and supply can be tight, having your own fab starts to look less like a luxury and more like a necessity.
The Analyst Take: Independence and Merger Dreams
Here's where it gets interesting. Dan Ives of Wedbush Securities sees Terafab as more than just a chip plant—it's a strategic pivot. He believes it could help Tesla reduce its reliance on suppliers like Micron Technology Inc. (MU), Taiwan Semiconductor, and Samsung Electronics Co. Ltd. (SSNLF). In other words, Tesla wants to control its own destiny in the silicon world.
But Ives doesn't stop there. He estimates the project will cost about $25 billion, with capacity starting at 100,000 wafer starts per month and scaling to a whopping 1 million. And then he drops this bombshell: Terafab is "the first step to ultimately what will be Tesla and SpaceX combining forces in a merger likely in 2027." He's maintaining an Outperform rating and a $600 price forecast for Tesla, so he's clearly betting big on this vision.
Technical Check: Where's Tesla Stock Sitting?
Let's talk numbers. Tesla is trading in the upper half of its 52-week range ($222.79 to $498.83), which suggests the longer-term uptrend is still intact, but there's room below the prior peak. Right now, it's 6.2% above its 20-day simple moving average (SMA), indicating some short-term support from buyers. However, it's also 6.7% below its 100-day SMA, meaning the intermediate trend has some overhead pressure.
The moving average structure is mixed: the 20-day SMA is below the 50-day SMA, and that April death cross (where the 50-day SMA crossed below the 200-day SMA) is still hanging over the chart like a caution flag. On the brighter side, the MACD indicator is above its signal line, hinting at improving momentum after a prior downswing.
Over the last 12 months, Tesla is up 61.12%, a reminder that dip buyers have been rewarded despite the volatility. The key question now: can the stock build enough strength to break through resistance after stumbling in March?
- Key Resistance: $416.50—where rallies have recently stalled and sellers emerged.
- Key Support: $381.50—where buyers have tended to step in during pullbacks.
Earnings on the Horizon
Mark your calendars: Tesla is set to report earnings on April 22, 2026. Here's what analysts are expecting:
- EPS Estimate: 30 cents (up from 27 cents year-over-year).
- Revenue Estimate: $22.17 billion (up from $19.34 billion year-over-year).
- Valuation: P/E of 360.1x, which indicates a premium valuation compared to peers.
In premarket trading on Friday, Tesla shares were up 0.68% at $391.55, according to market data. So, as Tesla dives deeper into chipmaking with Terafab, investors are watching to see if this move powers more than just AI ambitions—it might just be the groundwork for a much bigger merger down the road.
