NEW YORK, March 16, 2026, 13:18 EDT
Tesla shares caught a lift Monday, advancing 1.8% to $398.30 by 1:00 p.m. EDT, after Elon Musk announced the company’s Terafab chip initiative would kick off in seven days—a fresh spark for traders. The stock had touched $403.62 earlier, gaining more than 2% at its peak, with the Nasdaq outpacing other major indexes. Reuters
The stakes are clear: Tesla wants shareholders to overlook its slowing vehicle sales and instead back CEO Elon Musk’s vision for self-driving tech, robotaxis, and even humanoid robots. Back in January, Reuters noted that investors were pressing for concrete signs Tesla’s much-hyped autonomy pitch was finally translating into real products. That pressure comes as Tesla’s annual revenue slipped about 3%—the company’s first drop in yearly sales. Reuters
Next up: Terafab. On Saturday, Musk said the new plant for artificial-intelligence chips—the same processors Tesla uses for its self-driving and robotics software—would get underway within a week. Tesla is building a fifth-generation AI chip, according to Reuters, and has discussed potential collaboration with Intel. For now, though, the company is still sourcing from Taiwan’s TSMC and Samsung in South Korea. Musk, for his part, doesn’t sound optimistic; he’s called even the most promising supply forecasts from their partners “still not enough.” Reuters
Tesla’s core car business is feeling intense pressure. Back in January, Reuters said deliveries slid to 1.64 million vehicles in 2025 from 1.79 million in 2024, as rivals like BYD, Volkswagen, and BMW ate into Tesla’s growth. Over in China, a separate Reuters dispatch from Beijing noted a sharp 91% jump in February sales of locally built Model 3s and Ys compared with a year ago, but that’s still a 15.2% drop from January. Reuters
This helps explain why shares can react sharply to even modest developments. Last week, Reuters noted Wall Street’s forecast for 2026 delivery growth fell to 3.8%, down from 8.2% back in January. Morningstar’s Seth Goldstein weighed in: “If I look at two of the three largest markets, I’m seeing a decline.” He cited the loss of U.S. EV tax credits and rising competition in Europe as key issues. Reuters
Tesla’s got cash on hand—and, for now, a schedule. In the January shareholder update, it put cash, equivalents and investments at $44.1 billion as of end-2025. That same update noted robotaxi operations in Austin had started phasing out safety monitors in January. Cybercab and Tesla Semi production ramps, according to the company, were still set for the first half of 2026. Megapack 3 manufacturing? Planned for Houston.
Closer to the source, Syrah Resources on Monday said the company and Tesla have once more pushed back the deadline—now June 1—to sort out an alleged default tied to their graphite supply agreement. The dispute centers on battery material coming from Syrah’s Louisiana plant. Reuters
Monday’s rebound hasn’t changed the math, analysts warn. MarketWatch points to UBS’s Joseph Spak, who estimates Terafab’s initial price tag near $30 billion. Analysts are bracing for Tesla to dip into negative cash flow in 2026 as those costs ramp up. MarketWatch
