Nvidia’s founder Jensen Huang expressed support for Tesla’s AI-powered self-driving vehicle strategy just weeks before a crucial vote on CEO Elon Musk’s record compensation. Musk is pivoting towards AI technology, deviating from Tesla’s original mission of promoting sustainable transportation. The move has faced backlash, with customers questioning the value of Tesla’s fully autonomous driving system priced at $15,000. Musk had to lower the price to $8,000 to attract more buyers.
Huang’s endorsement is significant given his reputation and expertise in the industry, which could reassure investors concerned about Tesla’s direction. Shareholders will soon vote on Musk’s $55 billion pay package, with advisory firms like Glass Lewis recommending against approving it. Huang’s support for Tesla’s AI strategy could sway the outcome of the vote.
Tesla’s reliance on Nvidia’s AI chips has been growing rapidly, with Tesla doubling its use of Nvidia’s AI training chips in the first quarter of the year. Despite the substantial investment in AI infrastructure, Musk is cutting costs in other areas to continue supporting Tesla’s core business. This includes layoffs and reevaluating investments in new projects to maintain profitability.
Overall, the support from industry experts like Huang and the continued investment in AI technology are crucial for Tesla’s growth and competitive advantage in the electric vehicle market. The outcome of Musk’s compensation vote will also impact Tesla’s future direction and financial stability.
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https://fortune.com/2024/05/27/elon-musk-tesla-nvidia-jensen-huang-shareholder-vote-pay-package-self-driving-cars/
