Benzinga - by Anusuya Lahiri, Benzinga Editor.
Emails from Nvidia Corp (NASDAQ:NVDA) staff indicate that Tesla Inc (NASDAQ:TSLA) CEO Elon Musk redirected 12,000 H100 GPUs initially allocated for the car company to X, his social media company.
The move reportedly pushes back Tesla’s supercomputer development.
What Happened: Musk originally indicated that he wants to increase the car company’s Nvidia H100 chips from 35,000 to 85,000 by the end of the year.
However, internal Nvidia emails suggest the billionaire diverted a large shipment of artificial intelligence (AI) processors from Tesla to X. This delayed Tesla’s receipt of over $500 million in GPUs, CNBC reports.
The decision could hinder Tesla’s development of autonomous vehicles and robotics.
Why It Matters: According to an internal Nvidia memo, Musk’s prioritization of X over Tesla for GPU allocation could delay Tesla’s long-term initiatives.
It also highlights potential conflicts of interest due to Musk’s multiple ventures (in addition to Tesla and X, he oversees SpaceX and xAI)
Analysts remain bullish on Tesla’s prospects. They’re betting on its FSD software despite headwinds like slower growth, competition in China, and electric vehicle skepticism, which they expect the electric vehicle maker to overcome in 2026.
Whether Nvidia can meet the high demand for its GPUs remains to be seen.
Price Action: Tesla stock lost 20% in the last 12 months. Investors can gain exposure to the stock via ARK Innovation ETF (NYSE:ARKK) and Tidal ETF Trust II The Meet Kevin Pricing Power ETF (NYSE:PP).
The Austin, Texas-based company’s shares traded lower by 0.31% at $175.94 at the last check Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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