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Sequoia partner Shaun Maguire (post dated 2026-08-04) says he is confident Elon…

2026-08-04 · 14:34 UTC ·@sourceryy ·1 min read

Brief

Sequoia partner Shaun Maguire argues (2026-08-04) that Elon Musk’s Terafab is critical for Tesla: owning chip and parts supply gives visibility into timeline weak points, and achieving Musk’s ramp targets will require over 10x current chip output—so Tesla must develop in-house fabrication capacity despite the difficulty.

Why it matters

Sequoia partner Shaun Maguire (post dated 2026-08-04) says he is confident Elon Musk’s Terafab will work and that analysts assign too low a probability to its success.

Key details

  • Maguire: Terafab matters because owning the supply chain gives Tesla visibility and predictability into weak points on production timelines.
  • Maguire: To hit Musk’s planned ramp, Tesla will need more than 10x the current chip supply; Musk can buy from Nvidia and others but must build in-house capacity even if it’s hard.
Source evidence

Sequoia's @shaunmmaguire explains why @elonmusk's Terafab is massively important for Tesla:

"People are assigning way too low of a probability that it will work. I feel confident that it will."

"Terafab matters because one—it's owning the supply chain so you have visibility and predictability into what your weak points are on your timelines."

"And two—if we want to ramp, as Elon said, he will buy all the chips he can from Nvidia and everyone else, but at the scale that he wants to operate, you're going to need more than 10x the output of the current supply chain."

"It just has to be in-house, even if it's hard."

Video

Elon Musk (@elonmusk)

Terafab

— https://nitter.net/elonmusk/status/2084635401566802217#m