Musk says Micron supplied Tesla with a large chip order on reasonable terms

Tesla said it secured a significant allocation of Micron memory chips, a move that could ease supply pressure on its autonomous driving, AI and Optimus programs as memory remains tight.

Summary

Tesla CEO Elon Musk said during Tesla’s July 22 Q2 2026 earnings call that the company secured a “significant allocation” of memory chips from Micron Technology on “reasonable” terms, an agreement that appeared to reassure investors as Micron shares rose about 2.5% in after-hours trading. The deal comes as DRAM and high-bandwidth memory remain in tight supply amid strong AI-related demand. For Tesla, memory is a key input for processing data used in autonomous driving systems, supporting the Optimus humanoid robot program and advancing broader AI efforts. The development also adds to Micron’s push to lock in long-term automotive customers after signing a long-term memory supply agreement with Ford on July 6, 2026. Micron has said it plans to invest more than $250 billion in U.S. production capacity through 2035, and supply agreements with major automakers could provide more predictable demand while reducing exposure to spot-market swings.

Terms & Concepts
  • DRAM: A type of memory chip used to temporarily store data for fast access by computing systems.
  • high-bandwidth memory: A high-speed memory technology designed to move large amounts of data efficiently for demanding workloads such as AI.
  • memory chips: Semiconductors that store data and are used in computing, automotive and AI systems.