Tesla (TSLA) Stock: Why Musk Isn’t Worried About Nvidia’s AI Challenge

Musk explained the timeline on X. He said achieving safer-than-human driving takes several years. Legacy automakers then face additional delays integrating hardware.

“The legacy car companies wont design the cameras and AI computers into their cars at scale until several years after that,” Musk wrote. He added this creates competitive pressure “in 5 or 6 years, but probably longer.”

The Tesla CEO described another challenge. Getting to 99% accuracy is easy. Solving the remaining edge cases is “super hard.”

Nvidias Platform Strategy

Nvidia takes a different approach than Tesla. The company builds full autonomous vehicle stacks for other automakers. Nvidia doesnt manufacture self-driving cars.

“Our system is really quite pervasive because were a technology platform provider,” Nvidia CEO Jensen Huang said Tuesday. The company positions itself as a supplier rather than competitor.

Huang praised Tesla‘s technology during a Bloomberg interview. He called Musk’s FSD approach “state-of-the-art” and “world-class.” He said he wouldn‘t criticize Tesla’s stack.

“I think Elons approach is about as state-of-the-art as anybody knows of autonomous driving and robotics,” Huang said. He encouraged Tesla to continue their current strategy.

Teslas Robotaxi Plans

Full Self-Driving remains central to Teslas growth strategy. The company launched a limited robotaxi service in Austin last summer. Tesla operates another ride-hailing service in San Francisco with drivers present.

Musk has promised fully autonomous vehicles for over a decade. The company said last August its training a new FSD model. The technology still requires driver supervision.

Musks 5-6 year timeline suggests he sees limited near-term pressure. The gap between partial autonomy and safer-than-human driving remains years away. Legacy automakers then need additional years for production integration at scale.

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