BackyardProduction/iStock via Getty Images Tesla ( TSLA ) and SpaceX's ( SPACE ) proposed titanic Terafab chip fabrication facility in Austin, Texas, likely signals a first step towards an eventual merger as soon as next year, according to Wedbush. Over the weekend, Tesla and SpaceX CEO Elon Musk unveiled plans for a new semiconductor venture, dubbed Terafab, to be built in Austin, Texas. It will ...
BackyardProduction/iStock via Getty Images Tesla ( TSLA ) and SpaceX's ( SPACE ) proposed titanic Terafab chip fabrication facility in Austin, Texas, likely signals a first step towards an eventual merger as soon as next year, according to Wedbush. Over the weekend, Tesla and SpaceX CEO Elon Musk unveiled plans for a new semiconductor venture, dubbed Terafab, to be built in Austin, Texas. It will be composed of two advanced chip factories operated jointly by Tesla and SpaceX, as Musk seeks greater control over semiconductor supply for AI, robotics, and space computing. "This Terafab project with both SpaceX and Tesla is expected to cost up to $25 billion to produce at TSLA's Giga Texas, making it the largest semiconductor fab in human history, which focuses on chip design, lithography, fabrication, memory production, advanced packaging, and testing," said Wedbush analysts in a Wednesday investor report. "The initial production target is expected to reach 100k wafer starts per month, which would then scale to 1 million wafer starts per month, which would represent ~70% of TSMC's global output, with the goal of producing 100 billion – 200 billion custom AI and memory chips per year to power TSLA FSD, Cybercab, and Optimus manufacturing lines." "With TSMC and Samsung not scaling its chip production enough to meet Musk's goals, this facility will ramp over time to meet his companies' demand for computing power that is actively outweighing current supply, with current AI compute output at ~20 gigawatts per year, with this representing ~2% of the companies' needs," Wedbush noted. SpaceX recently merged with Musk's xAI ( X.AI ). "While the timeline for this project is uncertain, this will accelerate the company's ambitious AI path, which we believe will set the foundation for TSLA to become an AI powerhouse over the coming years, with chip and memory supply expected to be the greatest constraint," they added. "We also believe this is the first step to ultimately what will ...
When the Strait of Hormuz effectively closed on Feb. 28, most of the financial coverage focused on oil. That's understandable, as roughly 20% of the world's oil and natural gas supplies transit that waterway every day. But fixating on oil prices misses the bigger supply chain story, and for investors in consumer goods, that story is more immediately threatening. It's threatening for things as comm...
When the Strait of Hormuz effectively closed on Feb. 28, most of the financial coverage focused on oil. That's understandable, as roughly 20% of the world's oil and natural gas supplies transit that waterway every day. But fixating on oil prices misses the bigger supply chain story, and for investors in consumer goods, that story is more immediately threatening. It's threatening for things as commonplace as your favorite blue jeans or baby products. The countries most responsible for manufacturing the clothes, shoes, and household goods sold in American retail stores -- Vietnam, India, Bangladesh, Cambodia, Sri Lanka -- sit either directly within the affected shipping corridors or in adjacent routes that are now severely congested and expensive. Within hours of the closure, four of the world's largest container shipping lines suspended transits. War risk premiums on hull insurance surged to as high as 1.5% of hull value. Image source: Getty Images. Continue reading
A selloff on Mozambique’s dollar bonds extended into a 10th day, as the oil shock from the Iran war deepens the country’s financial crisis. The $900 million note due 2031 slipped on Wednesday to 78.18 cents, the lowest since April 2025. The securities have slumped over seven cents in price since the war started, making Mozambique among the hardest hit credits in Africa. The yield on the bond rose ...
A selloff on Mozambique’s dollar bonds extended into a 10th day, as the oil shock from the Iran war deepens the country’s financial crisis. The $900 million note due 2031 slipped on Wednesday to 78.18 cents, the lowest since April 2025. The securities have slumped over seven cents in price since the war started, making Mozambique among the hardest hit credits in Africa. The yield on the bond rose Wednesday to almost 15%, according to CBBT composite pricing. But Mozambique’s troubles started well before the conflict, with the International Monetary Fund and World Bank already sounding warnings over persistent debt-funded overspending. While it hosts some $50 billion worth of gas projects, progress has been slow, and now, it faces paying higher prices for fuel and fertilizer imports. Giulia Pellegrini , lead portfolio manager at Allianz Global Investors, highlighted Mozambique and Senegal as countries where the situation has deteriorated most as a result of the oil price spike. In both nations, bond yield spreads over Treasuries are well above the 1,000 basis-point level, the mark commonly seen as denoting distress. “In Mozambique’s case, tapping into its gas wealth is still some way off with insecurity in the north of the country having delayed gas projects,” Pellegrini said. Read More: World Bank Says Mozambique Deficits Risk $50 Billion LNG Project Within Mozambique, local lenders report foreign exchange backlogs as high as $800 million. Authorities managed to raise the equivalent of $4.88 million in a debt auction on Tuesday. However, that source of funding looks precarious, given that banks are already limiting their participation in such sales. Absa Bank Limited strategists who visited the country last week said the government isn’t servicing domestic bonds, bilateral external debt or Treasury bills issued to finance its day-to-day operations. That’s likely to lock the government out of borrowing on domestic as well as international markets. “It neither pays int...
A study of analyst recommendations at the major brokerages shows that Reliance Inc (Symbol: RS) is the #14 broker analyst pick, on average, out of the 50 stocks making up the Metals Channel Global Mining Titans Index, according to Metals Channel. The Metals Channel Global Minin
A study of analyst recommendations at the major brokerages shows that Reliance Inc (Symbol: RS) is the #14 broker analyst pick, on average, out of the 50 stocks making up the Metals Channel Global Mining Titans Index, according to Metals Channel. The Metals Channel Global Minin