SpaceX has filed development plans for a $55 billion semiconductor manufacturing complex in Texas, jointly developed with Tesla, that the two companies are calling Terafab. The proposed site combines wafer fabrication, advanced packaging and dedicated power generation capacity.
A SpaceX subsidiary will manage construction and operations, with Tesla committing to multi-year volume offtake on automotive-grade and industrial chips. The location, which the companies have not yet confirmed publicly, is widely reported to be near Austin.
The filing comes as SpaceX prepares for an initial public offering, with the roadshow scheduled to begin on June 8 and shares expected to start trading in late June or early July at a target valuation of about $1.75 trillion. The company has filed registration documents with the Securities and Exchange Commission.
Elon Musk separately announced that xAI, his AI start-up, would be folded into SpaceX as a product line called SpaceXAI. xAI will cease to exist as an independent entity once the consolidation is complete.
A regulatory filing earlier this month disclosed that Tesla had received about $573 million in revenue from xAI and SpaceX in 2025, while paying around $25 million in expenses to Mr Musk's other companies. Tesla's board said the related-party flows had been independently reviewed.
Tesla shares opened higher on Thursday, briefly trading above $400 in pre-market activity. SpaceX shares are not yet publicly traded.