Nvidia Corp. (NASDAQ: NVDA) CEO Jensen Huang expects Tesla Inc. (NASDAQ: TSLA) to be the leader in the electric vehicle (EV) artificial intelligence (AI) business. He told Yahoo, “Tesla is far ahead in self-driving cars, but every single car, someday, will have to have autonomous capability.”
24/7 Wall St. Key Points:
-
Nvidia Corp. (NASDAQ: NVDA) CEO Jensen Huang expects Tesla Inc. (NASDAQ: TSLA) to be the leader in electric and autonomous vehicles.
-
The pending rollout of its robotaxi will prove whether Huang is correct.
-
Take this quiz to see if you’re on track to retire. (sponsored)
If Huang is correct, embattled Tesla may be on the verge of a turnaround. Its sales in China and across the EU have slipped sharply. In several European countries, the decline in May was in the high double-digit percentages. Although Tesla does not release data in the United States, its market share is likely to have fallen below 50%. GM, Ford, and Hyundai/Kia have growing EV sales.
The primary reason Tesla sales have dropped is likely Tesla CEO Elon Musk’s association with Donald Trump and his efforts to reduce funding for large parts of the U.S. government. Some of those cuts involve departments that are considered essential to the federal government’s operations. The plans have triggered tens of thousands of layoffs, as well as protests at Tesla dealerships.
Later this month, Musk plans to put Tesla’s robotaxi on the road in Austin. The vehicle will test whether Tesla can create an actual self-driving car that requires no human intervention whatsoever. There have been several accidents that have involved Tesla’s current “Autopilot and Full Self-Driving (Supervised)” service. Tesla has repeatedly stated that drivers of cars with this service must keep their eyes on the road.
Musk recently commented, “We are being super paranoid about safety, so the date could shift.” He is referring to the Austin release date. If the delay lasts into July, there will be some concern about the quality of the new service.
Tesla must contend with other companies that claim to have fully automated self-driving systems. The first of these is Alphabet’s Waymo, which has been on the road for several years in several cities. If the Tesla product does not best this, Musk’s comments about the Tesla product will be undermined. And Tesla’s stock price is based mainly on the success of the Austin rollout
Austin will prove whether Huang is correct.
Nvidia CEO Backtracks and Suddenly Bullish on Quantum Computing Stocks
Most People Don’t Realize How Cheap Money Is Right Now (sponsor)
Millions of Americans have missed the best money opportunity right under their noses. Personal loan ares are shockingly affordable today, and can be a secret weapon for that home improvement project, paying off a credit card, or covering an unexpected emergency.
With rates starting at just 6.40% APR, frankly it’d be crazy to not consider one. It’s the smart time to take action. Compare top loan offers in under 2 minutes—with zero impact on your credit score—and get matched with lenders ready to help you move forward.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
