The US chipmaker said on Tuesday it would join with SpaceX, xAI, and Tesla to help build Elon Musk's Terafab.

Intel has announced that it will help Elon Musk design and build his proposed Terafab in Austin, Texas, a joint venture between Musk's companies like SpaceX, Tesla and xAI to manufacture the chips necessary to power various AI projects.

Tesla and SpaceX are building a $20 billion semiconductor plant in Austin called Terafab. Elon Musk says it's the only way to meet his companies' AI chip needs.

Tesla (NASDAQ:TSLA) shares are down 4% in midday trading on Tuesday, sliding from $352.82 to less than $339. The drop adds to a rough stretch for the stock, which is now down 25% year-to-date. Three overlapping pressures are driving today’s selling: persistent EV demand concerns following a Q1 delivery miss,

Sales of Tesla vehicles rose in the last three months after a brutal year of boycotts over Elon Musk’s politics but still fell short of expectations.

Tesla’s executives might love Elon Musk, lavishing him with massive pay packages to beg him to stay on, but that doesn’t mean he loves them back. A recent interview with Tesla’s former president of global sales,

Intel said Tuesday that it will play an unspecified role in Elon Musk’s “Terafab” project, an effort to build more semiconductor plants and develop new computing power for the billionaire’s companies.

"We advise investors cautiously approach this expectation within the context of both execution risk and the time value of money." The post JP Morgan Concerned Tesla Stock Will Crash by 60 Percent in Face of Ongoing Business Failures appeared first on Futurism.

Construction is underway north of Tesla’s Gigafactory Texas site in Austin as Elon Musk outlines plans for the massive Terafab chip project.

The move seems inevitable given Musk's long-term ambitions.