Tesla, Space X, and Space XAI have filed a declaratory judgment action in the US District Court for the Western District of Texas to resolve a trademark dispute over the 'Terafab' name. Tera-print, an Illinois nanotechnology firm, sent a cease-and-desist letter on May 23 after Tesla filed its own Terafab trademark applications on May 18. Despite six settlement meetings between June and August, the dispute continues, with Tera-print stating it will defend its rights.

Tesla and Space X argue that Tera-print's May 22 application for semiconductor-related goods appears opportunistic, and that their products operate in different spheres, making confusion unlikely. Musk announced Terafab in March as an AI compute chip factory, with Intel joining the project in April. The venture plans a Grimes County, Texas site with a $16.8 billion first phase, part of an estimated $119 billion total cost across all phases.