Tesla Motors may be entering a phase of significantly higher capital intensity than previously anticipated as it advances its new Terafab chip project. Barclays suggests that the costs associated with this initiative could escalate rapidly to a very substantial scale. The institution noted that Tesla's prior capital expenditure guidance of $200 billion now appears overly conservative. Analyst Dan Levy stated that even his bullish scenario estimate exceeding $500 billion "may be significantly too low," indicating that the total investment could ultimately reach multiples of that figure. However, this will not happen overnight. Barclays anticipates the project will be rolled out in phases as Tesla progresses toward its ambitious 1 exaflop computing goal. Importantly, Tesla is unlikely to proceed alone—following a recent collaboration agreement, SpaceX and xAI are expected to provide financial support. The Terafab plan, disclosed by Elon Musk last weekend, aims to secure tighter control over chip supply amid growing artificial intelligence demand. Tesla currently still relies on manufacturers like TSMC and Samsung, but Musk evidently desires to reduce this dependency. The project will commence with a small facility focused on design and testing, with potential for future expansion into full-scale production.