According to Sawyer Merritt on Twitter, Elon Musk identified chip production as the primary limiting factor for Tesla’s future growth, particularly for AI-driven applications. Musk stated that even the most optimistic supply forecasts from current suppliers fall short, prompting Tesla to consider constructing a large-scale domestic semiconductor fabrication plant, or 'terafab'. This move targets removing chip constraints within three to four years, a key step to enable Tesla’s AI and machine learning advancements at scale. As reported by Sawyer Merritt, Musk emphasized Tesla’s history of tackling challenging projects, suggesting that vertical integration in chip manufacturing could become central to Tesla’s AI business strategy.