Nvidia CEO’s surprising announcement leaves Tesla investors stunned – a must-read update.

Despite implementing various strategies 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 by nearly 30% in 2024. Currently, the equity is facing resistance at the $200 level and trading at $175. Investors are looking for triggers that can help Tesla reclaim new levels, and one such boost came from Nvidia (NASDAQ: NVDA) CEO Jensen Huang, who praised Tesla’s advancements in self-driving technology.
This endorsement from Nvidia’s influential leader holds significant weight as Tesla steers the company towards artificial intelligence (AI). Nvidia’s AI chips are in high demand among tech giants like OpenAI, and the company’s venture into AI chips has propelled its equity, making it a part of the $1 trillion market capitalization club. Tesla plans to invest over $500 million in Nvidia’s AI chips in 2024, representing a notable shift in Tesla’s original mission of becoming the leading car manufacturer.
Additionally, Huang’s stance is noteworthy as Tesla shareholders prepare to vote on CEO Elon Musk’s controversial record compensation package, valued at around $55 billion. Musk’s compensation is tied to a series of performance milestones related to the carmaker’s financial growth. Some shareholders have opposed the package, arguing that it is not commensurate with the company’s performance. Despite disappointing results in the first quarter of 2024, where Tesla reported a 55% plunge in net income and a 9% decrease in revenue compared to last year, Musk announced plans to “accelerate” production of new, cheaper vehicles.