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2. The game chokes on Processor speed, Not Graphix processor speed.
a. this game tracks every "loose" object with in draw range.
3. There is a Trouble shooting guide on the Community page.
Before you start the game from the main menu, go into Options under graphics, and reduce the Visible range to about 1/2. Reduce Quality to Fair. Once in the game, wherever possible Reduce the tech's block count, replace smaller blocks with larger ones. Have Empty spaces inside of the tech. If you are carrying Factory parts in your tank, Hide them inside the tech. Clean up the battle zone of blocks and loose resource chunks.
As mentioned above; Terratech (Along with the preponderance of Unity Titles) are very CPU (single thread) intensive for calculations; Depending on the specs and age of the computer (which can be determined by testing the PC with a benchmark utility i.e. userbenchmark.com)
First Suggestion would be to check the "power plan" of your PC (presuming you are using windows) and set "minimum cpu state" to 100% as described in the following article:
https://www.laptopmag.com/articles/use-maximum-cpu-power-windows-10
Another possibility , though less likely, is that an updated sound driver might help as the performance issue seems to be tied to combat where different music is playing as opposed to when peacefully exploring.
Another factor in overall performance (though seemingly unrelated) is that higher graphics qualities will impact FPS if the gpu is lacking (particularly in overall memory for texture caching) in ability, especially embedded graphics on APU's it is suggested to use lower graphics settings / overall resolutions to maintain equitable / enjoyable framerates during gameplay.