Your theories might be correct, but they don't make sense in the context of what Musk has been talking about. He's been calling it a "terafab" because he thinks his volumes will be very high. He must be thinking hundreds of millions of chips to be in high volume territory. In fact, his rhetoric reminds me of Sam Altman's from a couple of years ago. If you're very high volume, as a terafab would be if it earned the name, cost is a big factor, because even a small cost adder on hundreds of millions of chips multiplies out quickly.
Co-location makes great sense if you're a control freak, which we all know Musk is, but now he has to ramp on multiple disparate production technologies simultaneously, so it makes no practical sense.
Basically, you're saying Musk is akin to an old-fashioned carnival snake-oil barker, just to get attention. I'm having trouble believing that.
