At Tesla’s (TSLA) recent shareholder meeting, Elon Musk hinted that the EV company may build its own chip manufacturing plant, which is an idea he had already discussed internally months earlier. If Tesla goes through with this, the chips could be used not only in Tesla’s products but also in Musk’s other ventures. While shareholders weren’t excited about the idea of Tesla investing in xAI (PC:XAIIQ) directly, this chip plan could create an indirect collaboration, according to The Information. Musk also revealed that SpaceX (PC:SPXEX) might use Tesla-made chips in future data centers in space.
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However, Musk has even more ambitious plans that involve Tesla’s Optimus humanoid robot and the Cybercab autonomous vehicle. More precisely, he wants Optimus to be able to ride in the Cybercab in order to make deliveries. This would require Tesla to redesign Optimus so it can get in and out of the Cybercab easily. The production of Optimus has already been delayed until 2026 due to technical issues, but Musk now plans to build a production line for one million units in California and eventually ten million in Austin. For now, Tesla will use the first Optimus bots in its own factories to prevent tech leaks.
Meanwhile, Cybercab is set to start production in April at Tesla’s Austin factory, but the version shown has no steering wheel or mirrors and relies completely on self-driving tech. For Tesla to legally sell such a car, it needs an exemption from the Department of Transportation, which can take many months and is uncertain. Even if approved, Tesla would be limited to producing only 2,500 units a year under current rules. To get around this, Tesla has made test versions with steering wheels and may use them temporarily.
What Is the Prediction for TSLA Stock?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 14 Buys, 10 Holds, and 10 Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average TSLA price target of $384.14 per share implies 6.1% downside risk.
