Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk has shared that the automaker will be developing its own 2nm chip amid a push towards in-house chip-making.



<h2>2nm Chip Fabrication</h2>



In an interview with entrepreneur Peter Diamandis on Tuesday, Musk shared that the tech industry was already undertaking &#34;atomic level assembly&#34; on circuits, sharing that there were four or five silicon atoms &#34;per nanometer.&#34; He also shared that foundries were getting clean rooms wrong.



Broadly speaking, a clean room is a highly-controlled environment in chip foundries that lets in ultra-low amounts of airborne particles, humidity, or other things that can potentially contaminate chipsets.



&#34;Tesla will have a two-nanometer fab, and I can eat a cheeseburger and smoke a cigar&#34; in the clean room, Musk shared, adding that there would be &#34;wafer isolation the entire time&#34; to protect it from contamination.



<h2>Nvidia’s Vera Rubin Chip</h2>



The news comes as Nvidia Corp (NASDAQ:NVDA)  revealed its all-new Vera Rubin chipset at the Consumer Electronics Show (CES) 2026, promising over 5 times more power than its predecessor, the Blackwell chipset.



Musk, sharing his thoughts on the chipset, said that the technology would take over 9 months to become operational at scale and for its software to function smoothly.



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Tesla scores well on the Momentum and Quality metrics, but offers poor Value. It also has a favorable price trend in the Short, Medium, and Long term. For more such insights, sign up for Benzinga Edge Stock Rankings today!



Price Action: TSLA gained 0.46% during pre-market trading on Wednesday, according to Benzinga Pro data.



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Tesla CEO Elon Musk announced plans to develop a 2nm chip for in-house manufacturing, emphasizing advancements in chip technology. He criticized current clean room practices in chip foundries and stated that Tesla's facility would ensure high standards of cleanliness. This announcement coincides with Nvidia's unveiling of its new Vera Rubin chip, which promises significant performance improvements. Tesla's stock showed a slight increase of 0.46% in pre-market trading.

- Tesla Inc. CEO Elon Musk announced plans to develop a 2nm chip as part of a shift towards in-house chip production.  
- He criticized current clean room practices in chip foundries, emphasizing Tesla's commitment to contamination prevention during chip fabrication.  
- Meanwhile, Nvidia unveiled a new Vera Rubin chipset at CES 2026, which Musk noted could take over nine months for mass operational readiness.

Elon Musk Says Tesla Will Develop 2nm Chip Fab Amid AI Hardware Push