Jun 05, 2024

Tesla shares are trading in a technical pattern and are ready to break out from consolidation. 

TSLA – Daily Chart

TSLA – Daily Chart 

TSLA stock trades in a triangle formation, which has tightened and looks ready to break out. Support for a lower move costs $160.68, and the higher resistance is $200-205. 

Elon Musk was under some pressure again after reports that he diverted Nvidia AI chips from Tesla to X. 

CNBC reviewed an internal Nvidia memo from December: ” Elon prioritises X H100 GPU cluster deployment at X versus Tesla by redirecting 12K of shipped H100 GPUs originally slated for Tesla to X instead.” 

CNBC also said the change delayed Tesla’s delivery of over $500 million in processors by months. Tesla CEO Musk explained in a post on X that the swap of AI chip shipments happened because Tesla had no place to store and use the chips when the move was made. 

“Tesla had no place to send the Nvidia chips to turn them on, so they would have just sat in a warehouse,” Musk wrote.  

He added that Tesla would soon use Nvidia’s AI chips to train its Full-Self-Driving (FSD) software at its Gigafactory in Austin, Texas. “The south extension of Giga Texas is almost complete. This will house 50k H100s for FSD training.” 

Tesla shareholders are set to vote on June 13 to reinstate Musk’s $56 billion pay package, which a Delaware court voided. Musk previously said he would only build AI products at Tesla if given 25% voting control. 

“I am uncomfortable growing Tesla to be a leader in AI & robotics without having ~25% voting control… Unless that is the case, I would prefer to build products outside of Tesla,” Musk said in January. 

The price of Tesla looks set for a breakout, and the company’s following delivery figures could exacerbate the direction. In the first quarter, Tesla produced over 433,000 vehicles and delivered around 387,000. 

Sales are still slowing in China. In May, they dropped 6.6% from a year earlier to 72,573 units, extending a year-on-year decline for the second month, according to data this week from the China Passenger Car Association (CPCA).

Read More

Warren Buffett’s Berkshire Hathaway Sells More BYD Stock
Crude Oil Price Continues Above $80 Level
US Stocks Look To Push For Another High This Week
GBPUSD Exchange Weakens Ahead of Bank of England Meeting
EURAUD Exchange Rate Has Economic Data Ahead
French Stocks Slump, Rattling European Markets