Source: Bloomberg
Summary
Elon Musk announced plans for Tesla and SpaceX to collaborate on building chips. Musk said the companies will work together to design and manufacture semiconductors. According to Musk, the goal is to reduce reliance on third-party suppliers and improve the performance of Tesla’s electric vehicles and SpaceX’s rockets. The announcement was made at a recent Tesla investor day.
Our Reading
The announcement sounds ambitious.
Musk’s plan to build chips for Tesla and SpaceX is just the latest in a long line of ambitious projects. Tesla will design and manufacture semiconductors, because that’s not a crowded field already. The goal is to reduce reliance on third-party suppliers, because that’s worked out so well for other companies. Musk has a history of overpromising, but this time it’s different, right? The real question is, what will they rename this technology in 5 years.
Author: Evan Null
