Tesla’s Robotaxi Expansion and AI Chip Ambitions Fuel Stock Volatility Amid Sales Slump
Tesla shares rallied briefly after Elon Musk announced plans to double Austin's Robotaxi fleet next month, building on momentum from Monday's 7% surge tied to AI chip developments. The electric vehicle maker's stock climbed nearly 2% in early Wednesday trading before retreating on dismal European sales data.
October registrations cratered 49% year-over-year in EU/UK markets, compounding troubles in China where deliveries hit a three-year low. Yet investors continue betting on Tesla's AI pivot—from autonomous taxis to humanoid robots—as the true growth catalyst, overlooking traditional automotive performance.
Musk's weekend revelation about Tesla's deepening foray into AI chip design underscores this strategic shift. The company has reportedly worked for years on custom silicon to power its machine learning ambitions, though concrete product timelines remain unclear.
