"Barclays estimates that Terafab could cost in the mid-single digit trillion dollar range if fully built out. Even if Tesla's capex doesn't 'exponentially increase,' the firm expects a further step up from the elevated $20 billion figure Tesla already guided to."
"Tesla's Q4 2025 results showed tension between margin recovery and volume pressure. Gross margin expanded to 20%, while vehicle deliveries fell 16% year-over-year."
Tesla's stock is down 16% year-to-date, trading around $378. Barclays maintains an Equal Weight rating with a $360 price target, focusing on the potential costs of the Terafab semiconductor facility. Concerns about capital expenditures are heightened, especially since Terafab was not included in the $20 billion capex guidance for 2026. Barclays estimates Terafab could cost in the mid-single digit trillion dollar range. Tesla's Q4 2025 results showed a gross margin of 20% but a 16% decline in vehicle deliveries, indicating pressure on volume despite margin recovery.
Read at 24/7 Wall St.
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