Latest news with #selfdriving
Yahoo
7 hours ago
- Automotive
- Yahoo
Nvidia's auto biz surged last quarter. CEO Jensen Huang says it's a multitrillion-dollar opportunity.
Flying under the radar of Nvidia's (NVDA) AI demand-fueled earnings report was one of the chipmaker's smaller, but growing, businesses: automobiles. Nvidia said first quarter automotive revenue climbed to $567 million, up 72% from a year ago. In the fourth quarter, its auto revenue nearly doubled from a year ago, consisting mainly of hardware and software systems used in autonomous driving. 'Year-on-year growth was driven by the ramp of self-driving across a number of customers, and robust end demand for NEVs [new energy vehicles],' Nvidia CFO Collette Kress said on the Q1 earnings call. 'And we are now in production with our full-stack solution for Mercedes Benz, starting with the new CLA [sedan], hitting roads in the next few months.' Nvidia's 'full-stack' solutions, like the one it provides to Mercedes, are ones where Nvidia combines hardware like its DRIVE AGX Orin chips with its DriveOS software to power advanced driver assistance features in next-generation vehicles. The company is also using its technologies to advance manufacturing by streamlining assembly lines and using AI in factory robots. Companies like GM and Hyundai will use those technologies for "smart factory" initiatives, Kress said in March of this year. It's all supposed to add big dividends to Nvidia's top-line numbers. While data centers and gaming hog the headlines, automotive could soon start catching up. 'Nvidia's automotive vertical revenue is expected to grow to approximately $5 billion this fiscal year,' Kress said during the Q4 call in late February. Nvidia said earlier this year that Toyota — the world's largest automaker by volume — would be using Nvidia's self-driving tech as well. Nvidia chips are already used to power self-driving technologies at Mercedes (MBGAF), Volvo ( China's BYD (BYDDY), and device maker Foxconn (FXCOF), for example. Nvidia chips are also used in some of Tesla's (TSLA) supercomputers. The confluence of supercomputing and robotics is one of the next big frontiers for AI. CEO Jensen Huang calls it physical AI, or embodied AI, where physical objects like cars or robots harness AI to interact with the real world, for instance, with self-driving cars or robots moving about a factory floor. At CES this year, Huang said the AV 'revolution' and embodied AI would likely be the first multitrillion-dollar robotics opportunity. He said this week that Tesla was a partner. 'We do a lot of business with Tesla and xAI," Huang said in an interview with Bloomberg following this week's earnings release. 'We're going to build many more computers together. [CEO Elon Musk's] self-driving car, his Optimus robot, every single one of them is world-class and revolutionary.' Musk and Tesla are poised to begin their robotaxi testing in Austin in June, as early as the 12th. Musk himself has said Tesla's robotaxi endeavors would be a trillion-dollar business. Nvidia's Huang is rooting for Tesla. Why? More chips and software sales to power another of Nvidia's growing businesses. Pras Subramanian is a reporter for Yahoo Finance. You can follow him on X and on Instagram.
Yahoo
9 hours ago
- Automotive
- Yahoo
Tesla stock higher as robotaxi 'golden age' begins with June 12 start date, Musk officially departing D.C.
Tesla (TSLA) stock is on the rise after two big pieces of news came overnight: a reported start date for robotaxi testing and CEO Elon Musk's official government departure. Per Bloomberg, Tesla is targeting a June 12 launch date for its robotaxi service in Austin, Texas, according to sources. The start date, which could change, the source added, is earlier than the late-June date Musk had previously announced. Early this morning, in a post on X, Musk confirmed that for "the past several days, Tesla has been testing self-driving Model Y cars (no one in driver's seat) on Austin public streets with no incidents," also confirming a similar Bloomberg report. Musk added that Tesla is planning its first "self-delivery" from the factory to a customer next month. Also fueling optimism in the auto sector is the US Court of International Trade putting a temporary pause on many of President Trump's wide-ranging tariffs, though sector tariffs on autos, aluminum, and steel remain. Tesla stock rose in early trade, but pared gains and closed slightly higher. "We interpret the set date as a sign that management is confident the software is ready for testing," Morningstar analyst Seth Goldstein wrote in a note. "The report said Tesla plans to test 10 robotaxis. Based on our estimate for robotaxis making 15 rides per day, this could allow Tesla to run at least 4,500 tests per month, if not more." Goldstein added that the amount of testing should allow Tesla to more quickly identify and fix any issues with the robotaxi service versus a smaller fleet. Musk has said previously that if all goes well, Tesla would expand the number of vehicles in the fleet for further testing. Musk and Tesla have bet the future of the company on self-driving and the ability for its cars to perform robotaxi services. Tesla's dedicated robotaxi — the Cybercab — is slated for a 2026 launch as well. "It's prudent for us to start with a small number, confirm that things are going well, and then scale it up," Musk said last week. In a post on X late last night, Musk revealed that his time in Washington was coming to an end. "As my scheduled time as a Special Government Employee comes to an end, I would like to thank President @realDonaldTrump for the opportunity to reduce wasteful spending," he wrote, in part. Musk's declaration comes after he posted earlier this week that he would he would be back "to spending 24/7 at work and sleeping in conference/server/factory rooms," being "super focused" on X, Tesla, and SpaceX. Tesla investors and analysts would like nothing more for Musk to focus on his businesses — and avoid Washington and political blowback altogether. "We believe the golden age of autonomous is now on the doorstep for Tesla with the Austin launch on June 12th kicking off this key next chapter of growth," Wedbush analyst Dan Ives wrote to investors, adding that it is now time for Musk to focus and steer "Tesla in a very positive direction with autonomous and robotics the future." Ives believes that while there will be technical setbacks on the path toward full autonomy, the opportunity could be worth $1 trillion for Tesla. "We see the true autonomous winner as Tesla and over the coming year more investors will recognize this AI vision," he wrote. Ives maintained his Outperform rating and $500 price target. Pras Subramanian is a reporter for Yahoo Finance. You can follow him on X and on Instagram.
Globe and Mail
a day ago
- Business
- Globe and Mail
'Golden Age..of Robotaxis' Starts June 12: Tesla Stock (NASDAQ:TSLA) Notches Up
The 'golden age of robotaxis.' While this is kind of a mixed blessing for most, who like the thought of self-driving cars but would rather own one than borrow one, the idea that we are getting to a point where our cars will simply take us where we want to go is approaching. And at electric vehicle giant Tesla (TSLA), we are finally getting there. CEO Elon Musk is mostly back in place, and Tesla shares responded accordingly, up modestly in Thursday afternoon's trading. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter June 12 will mark the official launch date for robotaxi service in Austin, reports noted, though that date could change the closer it gets to being reality. It is already a stepped-up timetable; Elon Musk originally noted that the expected start date was late June. In fact, Musk himself noted that driverless Model Y Teslas have been roaming the streets of Austin, and no one knew. Why? Because there were 'no incidents' to report, thus making it as if the driverless cars were all being driven by humans anyway. In fact, reports noted, Tesla will see the first 'self-delivery' of a car from the factory to a customer sometime in June as well. The notion that cars could deliver themselves is exciting, and potentially represents some cost savings not only for Tesla but for others in the field. Not Everyone is Convinced In what may have been a surprise blow to Tesla sentiment, Gary Black, analyst with The Future Fund, revealed that the fund had sold off its entire Tesla holdings. This marked the first time since 2021, reports noted, that The Future Fund has not held a position in Tesla. So what prompted the sudden sea change? For the most part, it seems to have little to do with politics and more to do with sheer fundamentals. Black expressed concern over expected delivery quantities, Tesla's current price-to-earnings ratio, and a set of other 'near-term projects' that Black does not look to pan out the way others believe. Black noted that Tesla's P/E ratio currently runs at 188 times, and with earnings estimates still in decline, that suggests a potentially serious negative outcome to follow. Is Tesla a Buy, Hold or Sell? Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 16 Buys, 10 Holds, and 11 Sells assigned in the past three months, as indicated by the graphic below. After a 99.62% rally in its share price over the past year, the average TSLA price target of $282.70 per share implies 21.8% downside risk. See more TSLA analyst ratings Disclosure Disclaimer & Disclosure Report an Issue
Gizmodo
a day ago
- Automotive
- Gizmodo
Tesla's Robotaxi Could Self-Drive Your Faith in Autonomous Cars Right Off a Cliff
Apparently Tesla's robotaxi reveal is upon us, which is either a watershed moment for self-driving or a total flop. It's been a long time coming for Tesla's robotaxi, but it looks like the company's first truly driverless vehicle may be ready for a road test. According to Bloomberg, Tesla is set to reveal its robotaxi as soon as June 12, which—if you have a calendar and/or a cursory concept of time and space—you may note is pretty damn soon. While that reveal may be around the corner, the journey for Tesla's robotaxi to become a real thing you can plant your butt in has been long and winding. Elon Musk—and this is true—first mentioned the idea of Tesla-made robotaxis in *drumroll, please* 2016. That's right, it's been nearly a decade since Musk put self-driving taxis on our radar. Feel old yet? I sure do. BREAKING: Tesla launching robotaxi service in Austin on June 12th — Tesla Owners Silicon Valley (@teslaownersSV) May 28, 2025 While it's impossible to say whether June 12 will for sure be the big reveal, there is at least some evidence to support that the alleged robotaxi reveal is upon us. Some people have already reported seeing Tesla robotaxis being tested on the streets of Austin, Texas, where the driverless car is supposed to be unveiled. Musk has also taken to X, his favorite platform for saying dubious stuff, to confirm that big things are underway in Austin and that the company has been testing self-driving Model Ys, which are allegedly 'a month ahead of schedule.' For the past several days, Tesla has been testing self-driving Model Y cars (no one in driver's seat) on Austin public streets with no incidents. A month ahead of schedule. Next month, first self-delivery from factory to customer. — Elon Musk (@elonmusk) May 29, 2025 So, maybe this is the moment for Tesla robotaxis. I'm leaving space for Musk to actually deliver this time. It's hard to say for sure, but we'll only have to wait about two weeks to find out. One thing is for damn sure, though: whenever the moment comes, it will be just that—a moment, and a big one at that. If Tesla thinks its Full Self-Driving (FSD) beta is really ready for the big leagues, then Tesla's robotaxi will be the real test. I personally have my doubts that FSD can deliver. Tesla's beta, while functional in a lot of ways, has also been linked to quite a few controversies, including two fatal accidents, and Autopilot, its driver-assist software, has been linked to hundreds of non-fatal accidents over the past five years. That being said, I'm open to the possibility that FSD has dramatically improved over time. Tesla has pushed its software out to more and more people, which means it's collecting more and more data that could further train and refine the software. While Tesla's robotaxi test will likely be small at first, the stakes are still much higher since there won't be anyone at the wheel—or at least technically. According to one Morgan Stanley analyst who allegedly saw a preview of the robotaxi operation, the vehicles will be heavily teleoperated, meaning there will be a human monitoring the trips and capable of intervening if need be. Even with teleoperations, though, the risks are high, not just from a human safety perspective, but also for Tesla's reputation as a force in the self-driving world. As you may have noticed lately, Tesla, thanks in large part to Musk's politics and general Trump brown-nosing, hasn't really been doing so hot as a company lately, and a big flop in the self-driving arena probably won't help that. Nor will it instill much faith in the EV company's promise of bringing fully autonomous driving to the masses. Compounding those stakes is the fact that competitors like Waymo are nipping at Tesla's heels, having launched their own robotaxi programs in San Francisco, Phoenix, Los Angeles, and Austin. So, this is your moment, Musk, time to put all that hype to the test—or potentially crash and burn trying.
Yahoo
a day ago
- Automotive
- Yahoo
Tesla, Inc. (TSLA) Set to Launch Robotaxi Service in Austin on June 12: Bloomberg News
Tesla, Inc. (NASDAQ:TSLA) is expected to launch its long-awaited robotaxi service in Austin on June 12, Bloomberg News reported on Wednesday. While the date has been discussed internally, it could still change, said a source familiar with the matter. The company has not yet confirmed the official date to the press. However, CEO Elon Musk in an interview last week shared that Tesla, Inc. (NASDAQ:TSLA) was on schedule to launch robotaxi trials in Austin, Texas, by the end of June. The EV maker will begin the trials with 10 self-driving cars in safer parts of Austin with geofencing and scale up to a thousand within a few months if the launch goes well without any incidents. A successful trial is vital for Tesla, Inc. (NASDAQ:TSLA) as the company has been promising investors and customers since 2016 about delivering a safe, self-driving car that does not require human supervision. Tesla, Inc. (NASDAQ:TSLA)'s shares have gained 4% over the past week after Musk said he was back to working 24/7 at his companies, alleviating concerns among some investors about his commitment to Tesla because of political engagements. While we acknowledge the potential of TSLA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TSLA and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: ChatGPT Stock Advice: Top 12 Stock Recommendations and 10 Cheap Rising Stocks to Buy Right Now. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
