Speed up core making? Musk says Tesla has ordered equipment to develop wafer fab
China-Singapore Jingwei, July 23 (Xinhua) On the 22nd local time, Musk said on the earnings conference call that Tesla has ordered equipment for the development of wafer fabs. According to the Chinese website of the British Financial Times, Tesla disclosed its results. The company's second-quarter profits unexpectedly fell, mainly due to the provision of discounts to boost electric vehicle sales. The company's adjusted net profit for the three months ended June was $1.2 billion, down 17% from the same period a year earlier and below Wall Street expectations of $1.9 billion.
China-Singapore Jingwei, July 23 (Xinhua) On the 22nd local time, Musk said on the earnings conference call that Tesla has ordered equipment for the development of wafer fabs. According to the Chinese website of the British Financial Times, Tesla disclosed its results. The company's second-quarter profits unexpectedly fell, mainly due to the provision of discounts to boost electric vehicle sales. The company's adjusted net profit for the three months ended June was $1.2 billion, down 17% from the same period a year earlier and below Wall Street expectations of $1.9 billion. The report mentioned that Tesla encountered difficulties in the U.S. market after the U.S. government significantly cut the $7,500 electric vehicle tax credit and abolished relevant regulations to encourage the production of electric vehicles. The company's revenue from selling regulatory credits to competitors to help them offset emissions fell to $146 million from $439 million a year ago. At the same time, Tesla’s capital expenditures more than doubled compared with the same period last year in order to promote its entry into the fields of AI and robotics. The spending resulted in the company's first quarterly cash burn in two years and negative free cash flow of $1.1 billion. Musk told investors that the company is still on track to invest more than $25 billion throughout 2026, nearly three times the previous year. According to the report, the world's richest man described his investment offensive as: "This may be the fastest industrial expansion of American companies since World War II." According to the US Consumer News and Business Channel (CNBC), Musk said on the earnings call that Tesla will soon disclose more details about the chip factory and has ordered equipment for the development of the wafer factory, but refused to disclose other details of the company's "high-risk, high-reward" bet around artificial intelligence chips. In 2025, Musk mentioned the chip super factory plan for the first time. Reuters reported in March this year that Musk had announced that SpaceX and Tesla would build two advanced chip factories in a large park in Austin, Texas, USA. One will be used to provide computing power for cars and humanoid robots, and the other will be built for space artificial intelligence data centers. The project name is "TeraFab". During today's earnings call, Musk was asked whether Tesla and SpaceX would merge. Musk said, "Because of TeraFab, there's more and more overlap, but obviously you can't talk about merging companies on an earnings call or anything like that."