Tesla Inc. (TSLA) shares surged on Monday after CEO Elon Musk took to X to spotlight something that often gets overshadowed by the company's flashier autonomous driving promises: its homegrown AI chip operation.
Musk explained that Tesla has maintained a dedicated chip and board engineering team for years, and that team has already designed and deployed millions of AI chips across the company's vehicles and data centers. This isn't vaporware or a concept pitch—these chips are already powering Tesla's real-world AI systems.
"These chips are what enable Tesla to be the leader in real-world AI," Musk said. "The current version in cars is AI4, we are close to taping out AI5 and are starting work on AI6. Our goal is to bring a new AI chip design to volume production every 12 months."
That's an aggressive timeline, and Musk didn't stop there. He added that Tesla expects to eventually produce AI chips at higher volumes than all other AI chip manufacturers combined. The broader vision, according to Musk, extends beyond cars.
"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 said, referencing Tesla's humanoid robot project.
Technical Picture
The stock's recent climb has brought it closer to its 50-day moving average of $433.55, though it's still trading roughly 3% below that level. Year-to-date, shares are up 10.9%, a solid rebound from earlier lows.
Technical signals are mixed. The relative strength index sits at 38.25, a neutral reading that suggests the stock isn't overbought or oversold. The 200-day moving average is at $338.83, well below the current price and pointing to a longer-term bullish trend. Meanwhile, the nearby 50-day average could act as resistance.
Support is pegged 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 recent highs near $488.53.
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 navigates key technical levels.
Price Action: Tesla shares were up 6.87% at $417.94 at the time of publication on Monday. The stock is trading within its 52-week range of $214.25 to $488.53.
