Elon Musk Says Tesla Will Develop 2nm Chip Fab Amid AI Hardware Push

Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk has shared that the automaker will be developing its own 2nm chip amid a push towards in-house chip-making.

2nm Chip Fabrication

In an interview with entrepreneur Peter Diamandis on Tuesday, Musk shared that the tech industry was already undertaking "atomic level assembly" on circuits, sharing that there were four or five silicon atoms "per nanometer." He also shared that foundries were getting clean rooms wrong.

Broadly speaking, a clean room is a highly-controlled environment in chip foundries that lets in ultra-low amounts of airborne particles, humidity, or other things that can potentially contaminate chipsets.

"Tesla will have a two-nanometer fab, and I can eat a cheeseburger and smoke a cigar" in the clean room, Musk shared, adding that there would be "wafer isolation the entire time" to protect it from contamination.

Nvidia’s Vera Rubin Chip

The news comes as Nvidia Corp (NASDAQ:NVDA)  revealed its all-new Vera Rubin chipset at the Consumer Electronics Show (CES) 2026, promising over 5 times more power than its predecessor, the Blackwell chipset.

Musk, sharing his thoughts on the chipset, said that the technology would take over 9 months to become operational at scale and for its software to function smoothly.

Tesla scores well on the Momentum and Quality metrics, but offers poor Value. It also has a favorable price trend in the Short, Medium, and Long term. For more such insights, sign up for Benzinga Edge Stock Rankings today!

Price Action: TSLA gained 0.46% during pre-market trading on Wednesday, according to Benzinga Pro data.

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