On Monday, November 24, Tesla’s (NASDAQ: TSLA) stock surged 7%, fueled by CEO Elon Musk’s groundbreaking announcement about the company’s in-house artificial intelligence (AI) chip development. Musk took to social media to reveal that Tesla has been dedicated to advancing AI technology for years, with millions of AI chips deployed across its autonomous vehicles and data centers.
The Future of AI Technology at Tesla
“Most people don’t know that Tesla has had an advanced AI chip and board engineering team for many years. That team has already designed and deployed several million AI chips in our cars and data centers. These chips are what enable Tesla to be the leader in real-world AI,” Musk shared.
Looking ahead, Tesla is on the brink of introducing its AI6 chips, a development Musk believes will reshape the world. According to him, these chips hold the potential to save “millions of lives” through safer autonomous driving and by supporting cutting-edge medical technologies, such as the company’s robot Optimus.
“The current version in cars is AI4, we are close to taping out AI5 and are starting work on AI6… We expect to build chips at higher volumes ultimately than all other AI chips combined… These chips will profoundly change the world in positive ways, saving millions of lives due to safer driving and providing advanced medical care to all people via Optimus,” Musk added.
Wall Street’s Take on Tesla’s AI Innovations
Musk’s update caused a stir across the stock market. Melius Research deemed Tesla a “must-own” stock, citing the company’s rapid technological progress in AI and autonomy. Analyst Rob Wertheimer highlighted Tesla’s imminent transformative role, stating, “The world is about to change dramatically.”
Additional endorsements followed. On November 20, Piper Sandler’s Alexander Potter reiterated his “Buy” rating with a $500 price target, citing Tesla’s Full Self-Driving (FSD) version 14 and robotaxi advancements. Similarly, Stifel Nicolaus analyst Stephen Gengaro raised Tesla’s price target from $483 to $508, underscoring the company’s robust developments in autonomous vehicles and robotaxi operations.
As of now, Tesla’s average stock price target for the next 12 months stands at $383.37, as per TipRanks data. Despite some downside risk, the company has a “Hold” consensus rating, based on 14 “Buys,” 10 “Holds,” and 10 “Sells” from analysts in the past three months.
Explore Tesla’s AI-Powered Advancements
Tesla remains at the forefront of innovation, leveraging advanced AI capabilities to revolutionize driving and healthcare. If you’re inspired by Musk’s vision of a tech-driven future, consider diving deeper into Tesla’s breakthroughs with their autonomous technologies. For more on Tesla’s milestones, visit their official website.
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