Musk Touts Tesla’s AI-Chip Ambitions, Lifting Shares

Tesla shares jumped more than 6% after Elon Musk highlighted the company’s in-house AI chip efforts, helping the stock turn positive for the year after a recent tech pullback. In a weekend post, Musk said Tesla has “designed and deployed several million” AI chips across vehicles and data centers, and plans to move from its current AI4 design to AI5, with AI6 in development. He said Tesla aims to release a new chip design every 12 months and ultimately produce chips at volumes exceeding all other AI chips combined, part of a push to frame Tesla as an AI, self-driving and robotics company—not just an automaker. The gains came alongside broader market strength and rising expectations for a near-term Federal Reserve rate cut, which could bolster big-ticket purchases. Despite Monday’s rally, Tesla shares remain below early-month highs amid worries about an AI bubble and ongoing competitive pressures in EVs. Musk also used the post to recruit engineers for the chip program.

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