Elon Musk's semiconductor venture, Terafab, is currently involved in a trademark dispute before production has even commenced. The conflict arose after the Illinois-based nanotechnology firm Tera-print claimed that the name infringes upon its own registered trademark, Tera-Fab, which is used for desktop lithography systems.

Tesla filed its application for the Terafab trademark on May 18. Shortly after, on May 23, Tera-print issued a cease-and-desist letter to the company. Between June and August, the parties held six rounds of negotiations, but these discussions failed to produce a resolution.

On September 15, Tesla, SpaceX, and SpaceXAI filed a lawsuit in the U.S. District Court for the Western District of Texas. The companies are seeking a judicial ruling to confirm that the Terafab brand does not violate the trademark rights held by Tera-print.

Tesla and SpaceX argue that Tera-print attempted to expand its trademark protection to include semiconductor products only on May 22, suggesting the move was opportunistic. Furthermore, the plaintiffs contend that the two companies operate in distinct product sectors, minimizing any risk of consumer confusion.