Tesla Eyes Starlink Cars, $16.8B Terafab

Tesla’s strategy is becoming increasingly vertically integrated: own the vehicle, connectivity layer, and eventually much of the compute supply chain. The ambition is enormous, but execution, economics, and satellite capacity remain major open questions.

• –Terafab’s first phase is planned for Grimes County, Texas, with more than 100 million square feet projected at full scale.
• –The facility is intended to produce AI processors for Optimus, Cybercab, and SpaceX’s orbital data-center ambitions.
• –Starlink hardware has reportedly been tied to Cybercab connectivity for navigation, customer service, and fleet management—not autonomous driving itself.
• –Satellite connectivity could improve coverage for remote vehicles, but dense urban traffic and hardware costs may limit Starlink as a universal primary network.
• –The project would reduce Tesla’s dependence on external chip suppliers while increasing capital and execution risk.