Tesla Inc. (NASDAQ:TSLA) is ramping up its Terafab initiative by hiring semiconductor talent in Taiwan. At the same time, analysts see the project as a key step in its broader AI and strategic ambitions.

Hiring Push Targets Advanced Chip Talent

The electric vehicle giant has posted nine engineering roles in Taiwan for its Terafab project, seeking candidates with over five years of experience in advanced chipmaking.

The company is leveraging Taiwan’s expertise, anchored by Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM), as it builds out capabilities across critical production stages, including lithography, etching, thin-film processing, and yield engineering, Reuters reported on Friday.

Terafab Aims To Power AI Expansion

Tesla describes Terafab as a vertically integrated semiconductor facility that combines logic, memory, packaging, testing, and lithography mask production. The initiative, unveiled by CEO Elon Musk, is designed to support AI-driven applications across robotics and data centers.

The facility is expected to produce chips ranging from edge inference processors to satellite-grade semiconductors and high-bandwidth memory, amid rising demand and supply constraints in advanced chipmaking.

Analyst Sees Strategic Shift And Merger Potential

Dan Ives of Wedbush Securities said the Terafab project could mark a broader strategic shift, helping Tesla reduce its reliance on suppliers such as Micron Technology Inc. (NASDAQ:MU), Taiwan Semiconductor, and Samsung Electronics Co. Ltd. (OTC:SSNLF).

He estimates the project will cost about $25 billion, with capacity starting at 100,000 wafer starts per month and scaling to 1 million.

Ives added that Terafab is “the first step to ultimately what will be Tesla and SpaceX combining forces in a merger likely in 2027,” while maintaining an Outperform rating and a $600 price forecast.

Technical Analysis

Tesla is sitting in the upper half of its 52-week range ($222.79 to $498.83), which keeps the longer-term uptrend in view but leaves room below the prior peak.

The stock is trading 6.2% above its 20-day simple moving average (SMA), suggesting short-term support from recent buyers. However, it’s also trading 6.7% below its 100-day SMA, indicating the intermediate trend still has overhead pressure.

The moving average structure remains mixed: the 20-day SMA is below the 50-day SMA, and the April death cross (50-day SMA crossing below the 200-day SMA) still hangs over the chart as a longer-term caution flag.

At the same time, the moving average convergence divergence (MACD), a trend/momentum indicator, is above its signal line, suggesting improving momentum relative to the prior downswing.

Over the last 12 months, Tesla has been up 61.12%, a reminder that the bigger trend has still rewarded dip buyers despite mid-cycle volatility.

The key question now is whether price can build enough strength to challenge the next ceiling after failing to hold support back in March.

  • Key Resistance: $416.50 — a level where rallies have recently stalled, and sellers have shown up.
  • Key Support: $381.50 — an area where buyers have tended to defend pullbacks.

Earnings & Analyst Outlook

The countdown is on: Tesla is set to report earnings on April 22, 2026 (confirmed).

  • EPS Estimate: 30 cents (Up from 27 cents YoY)
  • Revenue Estimate: $22.17 Billion (Up from $19.34 Billion YoY)
  • Valuation: P/E of 360.1x (Indicates premium valuation relative to peers)

TSLA Price Action: Tesla shares were up 0.68% at $391.55 during premarket trading on Friday, according to Benzinga Pro data.

Photo by Samuel Boivin via Shutterstock