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Terafab targets its first test chip around May or June 2027 and volume production in the third quarter of 2028.
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Musk called SpaceX's capex efficiency "greatly underestimated," responding to a projection of $470 billion in spending over five quarters.
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Musk expects new Colossus 2 facilities online in November and December, targeting around 1.2 million Blackwell chips by year-end.
Shares of Space Exploration Technologies Corp. (SPCX) jumped over 3% in overnight trading late Sunday after CEO Elon Musk defended the company's capex efficiency and outlined fresh AI expansion targets, while a report pointed to renewed Terafab talks with TSMC.
SPCX stock traded around $139 overnight, recovering part of Friday's 6% slide to $134.72. Shares lost about 11% in October, their worst month since July.
Musk Reportedly Rethinks TSMC's Terafab Role
Musk may be easing his demand to control Terafab, with DigiTimes reporting fresh talks with Taiwan Semiconductor Manufacturing Co. (TSM). TriOrient research executive Dan Nystedt said on X that discussions would cover operational control, joint investment, technology and packaging and component bottlenecks.
The development comes after Musk said last month: "No, we will build and run the fab. Let there be ZERO doubt about that." He had left TSMC only the option of subleasing part of the site. Meanwhile, TSMC CEO C.C. Wei confirmed the talks last month but insisted that any participating fab must be run by TSMC.
Terafab, the SpaceX-Tesla (TSLA) venture with Intel as a partner, targets its first test chip around May or June 2027 and volume production in the third quarter of 2028, Reuters reported.
Musk Pushes Back On AI Spending Doubts
"Our capex efficiency is greatly underestimated," Musk said on X, responding to a projection that SpaceX could spend $470 billion over the next five quarters to reach 13 gigawatts of computing capacity by the end of 2027.
The estimate came from Kyle Reidhead, co-owner of investing media platform Milk Road. His model assumes fast construction would generate revenue to fund further expansion, projecting quarterly revenue of about $122 billion by late 2027 and $150 billion in debt. He estimated that Nvidia could capture 83% to 89% of the spending, potentially $414 billion. SpaceX already expects $35 billion to $40 billion in fourth-quarter capital spending. Third-quarter revenue rose 161% to $14.58 billion, including $7.56 billion from AI.
The company has also arranged $40 billion in chip and server financing through an Apollo Global Management affiliate, with deliveries and leases expected to begin in the first half of 2027.
Musk Sets Year-End Targets For Colossus 2
Musk said on Saturday that two buildings at Colossus 2, SpaceX's AI computing complex, each had 220,000 Nvidia chips used to train AI models. A third building, Gun Range, would have the same capacity. Another, called Spam, would hold about 200,000 chips to run AI services after training, requiring simpler connections between the chips.
"Good progress by the SpaceX team and contractors. Gun Range is tracking to be operational by end of November and Spam in December," Musk said after visiting the site. He added separately: "There will be a total of around 1.2M Blackwells at Colossus 2 by end of year," referring to Nvidia's Blackwell family of AI chips.
The expansion includes a former food-storage facility and a police gun range. Colossus was originally built to power xAI's Grok chatbot before SpaceX acquired xAI. The project also faces an NAACP lawsuit alleging that gas turbines used to supply electricity operated without required permits.
Musk said on Sunday: "The other supercompute projects are unable to reach their goals, but SpaceX is already achieving ours." He was sharing a post claiming Colossus 2 had more AI computing power than rival facilities.
How Do Retail Traders Feel About SPCX?
On Stocktwits, retail sentiment for SPCX slipped to 'bearish' from 'extremely bullish' levels a week ago amid 'low' message volume.
One user said SpaceX's fast data-center construction could help address the next computing bottleneck, adding: "2027 is going to be insane."
Another user said , "Stock has key support at $130 and $135 level." The user warned that a drop below $130 could bring a deeper decline.
SPCX stock has declined 16% year-to-date.
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Deepti Sri has no position in any of the stocks mentioned in this article. StockTwits' news team content is for informational purposes only and is not intended as investment advice. For more, see our editorial policy . This article was originally published on StockTwits .
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