Should investors sell immediately? Or is it worth buying Tesla? Wedbush Securities (Outperform rating, $600 price target) interprets Terafab as a potential precursor to a merger between Tesla and SpaceX by 2027. Baird (Buy rating, $548 target) views the project as a logical extension of Tesla’s established strategy of vertical integration within its supply chain. Barclays (Equalweight rating, $360 target) highlights capital risk, with analyst Dan Levy estimating the long-term total investment could surpass $100 billion. Morgan Stanley analysts project that building meaningful chip capacity alone would require an investment of $35 to $45 billion. Observers, including Bloomberg, have noted that Musk lacks direct experience in semiconductor manufacturing and that critical details—such as the final timeline, exact locations, and precise cost breakdown—remain undisclosed. European Vehicle Data Offers a Cautious Signal Amidst the semiconductor discussion, recent vehicle registration data from Europe presented a nuanced picture. In February, Tesla’s new registrations increased by 11.8% year-over-year, marking the first positive month after 13 consecutive months of decline. However, Chinese automaker BYD registered 15,438 vehicles in the EU during the same period, surpassing Tesla’s 15,438 units and achieving a staggering growth rate of 185%. Analysts caution against over-optimism, pointing out that the year-ago comparison period was exceptionally weak. In early 2025, Tesla had temporarily idled production lines at its Berlin, Shanghai, and other factories to retool for the updated “Juniper” Model Y. The Upcoming Quarterly Test All eyes are now on Tesla’s first-quarter 2026 results, scheduled for release on April 28. Analysts at UBS anticipate deliveries of approximately 345,000 vehicles, which would represent an 18% decline compared to the same quarter last year. Tesla’s stock has depreciated by roughly 11% since the start of the year, trading notably below its 50-day moving average. Whether the enthusiasm for Terafab can sustain the equity will also depend on regulatory developments concerning the company’s Full Self-Driving (FSD) system. Ad