Musk Wants More Control Over Chips Faizan Farooque Mon, October 12, 2026 at 8:16 AM EDT TSLA -0.31% SPCX +2.43% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Tesla Inc. (TSLA, Financials), the electric-vehicle and technology business, may try to do more in-house creation of bespoke chips as CEO Elon Musk seeks to speed up the design process.Musk told customers and investors outside Tesla's gigafactory in Austin, Texas, that his firms might be able to build semiconductors better than competitors since they know how to construct specialized equipment.The article falls well short of describing exactly what hardware Musk wants to construct, how much Tesla or SpaceX could be willing to put into it, or when a fresh chip-design project might begin.But it does matter, either way.Tesla already has a lot of processing gear that it uses for autonomous driving, artificial intelligence and robotics. Greater control over chip design might help the corporation better adapt technology to its own demands, and minimize its reliance on outside vendors.That same rationale might also apply to Musk's other enterprises like SpaceX, where specialized computers is crucial to satellites, communications and launch systems.The investors are attracted to vertical integration. The danger is the execution. Advanced chips and the apparatus surrounding them demand a lot of resources, engineering expertise and manufacturing coordination.The next trigger will be if Musk offers specifics on the equipment, investment needs and production timetable behind the projected acceleration of chip development.
