Tesla CEO Elon Musk has revealed that the company is developing and deploying AI chips in its cars and data centers. "Most people don't know that Tesla has had an advanced team of AI chip and board engineers for years," Musk wrote on Platform X on Sunday, Nov. 23. - This team has already created and deployed several million AI chips in our cars and data centers. It is these chips that allow Tesla to be a leader in real-world AI."
Musk also revealed that Tesla is close to finalizing its AI5 chip, has started work on the AI6 chip, and intends to bring a new processor design into mass production every 12 months. "These chips will radically change the world in a positive way - saving millions of lives through safer driving and providing access to advanced healthcare through [robots] Optimus," the billionaire added, while inviting AI specialists to join the company.
Developing its own chips could be a valuable area for Tesla, Barron's notes. Nvidia, which started with the production of gaming video cards, has turned its expertise in AI chips into a company with a market capitalization of $4.4 trillion. And Alphabet's own chips, which work in tandem with Nvidia's solutions in data centers, could be worth hundreds of billions of dollars, according to analysts' forecasts. In the case of Tesla, it is still difficult to assess the real value of its chip business - it is embedded in other products of the company, the publication writes.
Investors reacted positively to Musk's tweet. Tesla shares soared nearly 7% in trading on Monday. At the same time, since the beginning of 2025, Tesla's market value has only gone into the plus side by about 3%. For comparison, the main U.S. stock index S&P 500 for the same period added about 13%.
Only about 40% of analysts following the dynamics of the company's securities advise investors to buy them (Buy and Overweight ratings). Another 35% take a neutral stance with a Hold rating, and the rest recommend selling (Underweight and Sell). The Wall Street consensus target price of $400 is just 2% above the last close.
This article was AI-translated and verified by a human editor
