Investor's Corner
Tesla Fremont factory building permits reveal facilities and expansion costs
A compilation and analysis of building permits filed by Tesla since July 2016 has revealed that the Elon Musk-led company spent over $51.3 million in construction permits for the Fremont factory over the past two years. Tesla also invested more than $30 million in permits for nearby facilities, including its new offices located at Dumbarton Circle in Fremont’s Ardenwood District.
The breakdown of Tesla’s expenses in the development and continued improvement of the Fremont factory was compiled by BuildZoom, which sorted through the permits filed by the company using its National Building Permit Database. As could be seen in BuildZoom‘s findings, Tesla spared no expense when it came to ensuring that its main factory is optimized to tackle the immense challenge of producing the Model 3 at scale. Below is a table of Tesla’s expenses for the Fremont factory over the past two years. Do take note, however, that the expenses reflected do not account for the cost of robots and other equipment that Tesla purchased for each portion of the 370-acre site.
A table showing Tesla’s permits for its Fremont facilities. [Credit: BuildZoom]
Over the past two years, Tesla had filed several building permits for Fremont that cost over $1 million, among these being a $4.5 million grading and foundation permit for a 104,324-square-foot North GA3 (General Assembly 3) building. Two permits, worth $4.2 million and $2 million, respectively, were listed as “capacity increases” to the North Paint building. Other noteworthy permits include a $1.2 million and $800,000 project for two new facilities — one of which being a sprung structure — as well as a $400,000 “Tesla Sunrise” road with bio-retention system at the factory’s Eastern boundary.
As a means to adapt to the mass number of Model 3 reservations it received, Tesla had filed roughly 100 industrial and commercial alteration permits for the Fremont factory since July 2016, costing a total of $16.2 million. Tesla also invested substantially in several key areas of the factory, including its body/assembly line, its paint shop, and its stamping building.
Tesla’s body and assembly building covers one of the largest areas in the Fremont factory. Since July 2016, Tesla spent more than $21.4 million (excluding the cost of machinery) on additions and improvements to the assembly and body area. Permits worth $14.2 million were also filed to develop infrastructure for GA3. Tesla’s stamping building, which houses one of the world’s 35 existing high-end Schuler servo stamping presses, has also seen $809,000 worth of improvements since July 2016. The location of these facilities could be viewed in the image below.
The location of Tesla’s facilities at the Fremont factory. [Credit: BuildZoom]
The electric car maker’s paint shops, both North and South, received $10.2 million worth of improvements since July 2016, including $240,000 spent on fire prevention systems like sprinklers, fire detectors, and other safety systems. Permits also reflected a $5.2 million investment on AFES (Automatic Fire Extinguishing System) for the factory.
Perhaps most interesting in Tesla’s permits, however, were filings referencing “Sprung” and “repack” tent structures that are worth $2.9 million. As revealed by Elon Musk recently, the largest of these tents is now the site of the Model 3’s newest assembly line, dubbed as GA4. Musk has been particularly optimistic about the tent-housed Model 3 line, stating on Twitter that it has a “slightly higher quality” than traditional assembly lines.
With the end of the second quarter just a few days away, Tesla is now working at a breakneck pace in its attempt to hit its all-elusive goal of producing 5,000 Model 3 per week by the end of Q2 2018. With Musk stating that GA4 is now working, and with sightings of lots filled with Model 3 being reported around the facility, it appears that Tesla is closer to its target than ever before.
Investor's Corner
Tesla and SpaceX take “Terafab” Trademark fight to Federal Court
Tesla and SpaceX sue a small Illinois firm after cease and desist letters over Terafab.
Tesla and SpaceX are asking a federal judge to rule that their planned Terafab chip factory does not infringe a small Illinois company’s trademark, a request that arrives only after months of quiet negotiation broke down this summer.
The dispute traces to May 18, when Tesla filed three U.S. trademark applications for “Terafab” and “Tesla Terafab,” covering semiconductor chips and related chip making services. TERA-print LLC, a nanotechnology company that has held a federal trademark for “Tera-Fab” since 2021, responded five days later with a cease and desist letter. According to the lawsuit, first reported by Reuters, TERA-print argued that Tesla and SpaceX’s use of “Terafab” would confuse consumers familiar with its own trademark, which covers a desktop photolithography printer sold to researchers for sensor and bioengineering work.
What stands out in the filing is the timing of TERA-print’s own paperwork. One day before sending that cease and desist letter, on May 22, TERA-print applied to expand its existing registration to cover semiconductor materials, silicon chips, nanoelectronic devices and AI design services, categories it had not previously claimed. Tesla and SpaceX call that filing opportunistic in their complaint, noting it arrived two months after Tesla’s public Terafab announcement and just days after Tesla’s own trademark applications went in.
Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry
By June 10, TERA-print was threatening to sue for federal trademark infringement, false designation of origin and unfair competition, the complaint states. Rather than wait to be sued, Tesla, SpaceX and SpaceXAI met with TERA-print six separate times between June and August trying to resolve the dispute directly. Those talks collapsed, and the companies filed for declaratory judgment this week in the U.S. District Court for the Western District of Texas, asking a judge to find that “Terafab” does not infringe TERA-print’s mark before TERA-print can file a claim of its own.
TERA-print isn’t backing down. The company told PCMag it discussed a settlement with Tesla as recently as September 2 and feels misled by what it called Tesla’s professed interest in settling. Its CTO, Andrey Ivankin, said TERA-print holds a Defense Department contract to fabricate semiconductors and partially owns Mattiq Inc., an AI company built on TERA-print’s products, and that the company will vigorously defend its rights.
Tesla and SpaceX argue the overlap is superficial. Terafab is planned as a $16.8 billion complex spanning roughly 100 million square feet at the Grimes County site SpaceX confirmed last month, built to produce chips for Optimus robots, Tesla’s AI computing needs and SpaceX’s orbital data center ambitions, a scale and purpose the companies say no reasonable consumer would confuse with a tabletop lab printer. TERA-print’s product line has stayed focused on lithography tools for biological and sensor research since it registered its mark in 2021.
The trademark fight is the second legal dispute tied to the Terafab project in the past week, following a separate SpaceX suit aimed at keeping company records about the facility out of public view, as KBTX reported. Whether construction proceeds under the Terafab name now depends on a federal judge in Austin.
In a new interview on Wednesday, Tesla uber bull Ron Baron said that anyone looking to buy the company’s stock should do so as soon as they can.
Baron, founder and CEO of Baron Capital and one of Tesla’s most persistent institutional bulls, used a CNBC Squawk Box appearance on Wednesday to deliver a familiar message with fresh urgency: In his opinion, Tesla stock is a buy:
“The time to buy the stock is now. FSD is catching on, and it’s going to be bigger and bigger. 55% of new buyers are buying it (Teslas) with FSD. It’s going to be everywhere. It’s safer.”
The Baron Capital frontman’s case is built around Full Self-Driving. Tesla reported 1.48 million active FSD subscriptions in the second quarter, up 56 percent year over year, and company officials have said roughly 55 percent of new North American deliveries left with a subscription enabled.
Baron framed that attach rate as proof the product is moving from enthusiast extra to default expectation, and as a reason software, not just vehicle volume, should drive the next phase of value.
His conviction on Tesla shares is not theoretical, as Baron Capital made its first Tesla investment in 2014, after years of meetings that began around the 2010 IPO roadshow. The firm later built a large SpaceX position starting in 2017.
Ron Baron today in new interview on Tesla:
“The time to buy the stock is now. FSD is catching on, and it’s going to be bigger and bigger. 55% of new buyers are buying it (Teslas) with FSD. It’s going to be everywhere. It’s safer.” pic.twitter.com/Rv5PB0bVZ2
— Sawyer Merritt (@SawyerMerritt) September 16, 2026
Baron said those Musk-led bets have generated about $30 billion of the $71 billion in profits Baron Capital has produced for clients. He put the firm’s current exposure at roughly $25 billion in SpaceX and $5 billion in Tesla. Personally, he described SpaceX as his largest holding, at about $5 billion, with about $1.5 billion in Tesla and additional Tesla exposure through the firm’s funds.
That concentration is also a statement of loyalty. Asked about talk of a SpaceX-Tesla combination, Baron said he had already walked Elon Musk through arguments for and against a deal, then declined to repeat them on air. His public position was simpler: “Whatever you decide is better is what I’m going to support,” he said to Musk.
Baron also said that he picked up the farewell edition of the Model S after Tesla decided to sunset the vehicle earlier this year, calling it his favorite car he’s ever driven.
Elon Musk
Elon Musk gives his most telling Tesla-SpaceX merger conversation yet
Elon Musk hinted a Tesla-SpaceX merger could be coming, and Wall Street is taking notice.
Elon Musk gave his clearest signal yet that Tesla and SpaceX could eventually combine, telling the All-In Summit in Los Angeles that the two companies’ deepening collaboration makes the question worth asking. Sawyer Merritt first surfaced the highlight on X Tuesday.
Asked directly why Tesla and SpaceX remain separate given how closely they already work together, Musk told hosts at the summit: “Great question there. With all this collaboration, on so many levels, who can imagine what action one might take when there’s so much close collaboration in so many areas.” SpaceX President Gwynne Shotwell, who joined Musk on stage, added that SpaceX personnel have already moved into xAI to fill leadership and engineering gaps, saying the businesses are integrating “faster than I thought,” though “not fully integrated yet,”
The comments landed on top of merger speculation that has been building on Wall Street for months. JPMorgan has called a tie-up “strategically coherent on paper,” pointing to overlapping ambitions in AI, robotics, energy, transportation and space. Jefferies went further, estimating Musk could retain roughly 55.3 percent voting control in a deal structured without a premium, a scenario that would still leave room for Tesla shareholders to come out ahead. On Kalshi, traders now put the odds of a merger before 2028 at 66 percent.
Tesla’s stake in SpaceX, still under one percent, traces back to its earlier investment in xAI, which converted to SpaceX equity after SpaceX absorbed the AI company. The two are also jointly building Terafab, a chip facility in Austin meant to serve both Tesla’s AI computing needs and SpaceX’s satellite ambitions. Wedbush analyst Dan Ives has stood by a 2027 merger timeline for months, and Cathie Wood’s ARK Invest recently floated a similar case, an idea Musk pushed back on directly at the time.
Another Tesla SpaceX merger prediction by ARK Invest has Elon Musk talking
The timing adds another layer. Tesla has scheduled an October 1 unveiling for its next generation Roadster at a venue near SpaceX’s McGregor, Texas test site, using the phrase “Go for launch” in its promotional material. Both stocks dipped roughly 2 percent Monday before recovering slightly in premarket trading Tuesday, with SpaceX shares up about 0.4 percent and Tesla essentially flat.
Musk stopped short of confirming anything is in motion. But unlike his past denials of a corporate restructuring, this response didn’t rule one out, and it came with Shotwell sitting next to him describing an integration that’s already underway.
Tesla and SpaceX take “Terafab” Trademark fight to Federal Court
NHTSA just escalated its Tesla Cybercab investigation in a big way
