Tesla Inc shares are trading higher, following a significant update from CEO Elon Musk on the company’s advanced AI chip capabilities. Musk took to social media to spotlight the company’s dedicated chip and board engineering team, which has already designed and deployed millions of AI chips across its vehicles and data centers.
Key Points from Elon Musk
- Tesla has a dedicated chip and board engineering team.
- The team has designed and deployed millions of AI chips across vehicles and data centers.
- These chips enable Tesla to be the leader in real-world AI.
- The current version in cars is AI4, with AI5 and AI6 in development.
- The goal is to bring a new AI chip design to volume production every 12 months.
Tesla’s Ambitions
Musk underscored the scale of Tesla’s ambitions, stating that the company expects to eventually produce chips at higher volumes than all other AI chips combined. He also highlighted the potential impact of these chips, saying they will:
- Profoundly change the world in positive ways.
- Save millions of lives due to safer driving.
- Provide advanced medical care to all people via Optimus.
TSLA Analysis
Stock Performance
The stock’s recent climb has brought it closer to its 50-day moving average of $433.55, though it’s still trading about 3% below that level. Year-to-date, shares are up 10.9%, marking a solid rebound from earlier lows.
Technical Signals
Technical signals are mixed:
- The relative strength index (RSI) is at 38.25, a neutral reading that shows the stock isn’t overbought or oversold.
- The 200-day moving average sits at $338.83, well below the current price and pointing to a longer-term bullish trend.
- The nearby 50-day average could act as resistance.
- Support is set at $382.78, which may help cushion any pullback.
- Resistance is at $428.94, and a breakout above that level could open the door to a retest of the recent highs near $488.53.
Market Cap and Trends
With a market cap of $1.30 trillion, Tesla ranks among the biggest names in both the auto and tech sectors. Its stock performance will continue to be shaped by broader economic trends and investor sentiment, especially as it moves through key technical levels.
TSLA Price Action
Tesla shares were up 6.87% at $417.94, trading within its 52-week range of $214.25 to $488.53. The stock’s price action will be closely watched as it navigates key technical levels and broader economic trends.