Nvidia CEO’s surprising announcement to Tesla investors – a must-read!
Despite its efforts to boost investor confidence, the share price of electric vehicle (EV) manufacturer Tesla (NASDAQ: TSLA) continues to struggle. The company has been significantly impacted by the slowdown in the EV market, with the stock plummeting nearly 30% in 2024. Currently, the equity is facing resistance at the $200 level and is trading at $175. Investors are eagerly searching for triggers that can help Tesla reclaim new levels, and one such boost came from Nvidia (NASDAQ: NVDA) CEO Jensen Huang. Huang praised Tesla’s advancements in self-driving technology, which aligns with Tesla’s reported plans to register its ‘Full Self-Driving’ software in China and introduce a technologically advanced feature of the system later this year. This move has the potential to significantly boost Tesla’s sales in China and provide a new revenue stream. Huang’s endorsement holds weight as Musk leads Tesla through a pivot towards artificial intelligence (AI). Tesla plans to invest over $500 million in Nvidia’s AI chips in 2024, representing a notable shift in the company’s original mission. Huang’s stance is particularly noteworthy as Tesla’s shareholders prepare to vote on Musk’s controversial record compensation package valued at around $55 billion. This package has faced opposition from some shareholders who argue that it is not commensurate with the company’s performance. Despite disappointing results in the first quarter of 2024, Musk plans to accelerate the production of new, cheaper vehicles.
