Space Exploration Technologies Corp. CEO Elon Musk said on Tuesday that Terafab could reach volume production in the third or fourth quarter of 2028. Musk characterized that target as an aspiration and described the schedule as very aggressive. Terafab is a joint project between SpaceX and Tesla Inc. Musk said during SpaceX's third-quarter earnings call that SpaceX aims to have a functioning test chip around May or June of next year. SpaceX plans to develop the test chip at the company's research fab in Austin, Texas. Musk said SpaceX has potentially significant advances in chip fabrication but declined to provide details.
Musk said Terafab will eventually produce a terawatt of superintelligence chips annually. Musk said the shortage of superintelligence computing capacity will persist for a long time. Intel Corp. has been associated with Terafab since April, when Musk said Tesla planned to use Intel's 14A manufacturing process. Musk said earlier this month that discussions about possible cooperation with Taiwan Semiconductor Manufacturing Company Ltd. were underway. Musk subsequently said Terafab will construct and operate the fab independently. Special committees at SpaceX and Tesla are considering a possible combination of the companies. The committees have not reached agreement on terms.
Benzinga Pro reported that SpaceX generated third-quarter revenue of $14.58 billion, above estimates of $12.94 billion. Benzinga Pro put earnings at 35 cents per share, compared with expectations of 12 cents per share. SpaceX's revenue increased 161%, with superintelligence leading the growth. Superintelligence revenue increased 830% to $7.6 billion. Connectivity revenue, which includes Starlink, increased 69% to $5.2 billion. Revenue from the space business increased 6% to $1.8 billion. SpaceX recorded capital expenditures of $19.6 billion. SpaceX expects fourth-quarter capital expenditures of $35 billion to $40 billion.
SpaceX shares ended Tuesday at $147.79, a decline of 0.11%. SpaceX shares subsequently gained 8.06% to $159.70 in extended trading following the earnings news. Benzinga Edge rankings show a negative short-term price trend for SpaceX shares. However, Benzinga Edge rankings show positive medium-term and long-term price trends.
Musk Teases SpaceX Chip Breakthroughs, Eyes 2028 Production
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Summary
SpaceX CEO Elon Musk teased major chip breakthroughs during the Q3 earnings call, revealing plans to begin volume production of Terafab chips in late 2028. A working test chip is expected by mid-2027. Terafab, a Tesla collaboration, aims to produce a terawatt of superintelligence chips annually. Intel is already involved, and talks with TSMC continue. Altcoins to watch may react to rising trading volume if the project gains traction.
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