Tesla's AI Chip Advancements Drive Share Price Increase

By Patricia Miller

Nov 24, 2025

1 min read

Tesla shares rose 2.2% as Musk discusses advancements in AI chips that aim to enhance vehicle safety and medical applications.

Tesla shares experienced a notable increase of 2.2% in premarket trading after Elon Musk provided recent updates on the company's internal AI chip developments.

Investors are taking note as Musk revealed that Tesla has been operating a specialized team focused on AI chip and board design for several years. This initiative has led to the deployment of millions of custom AI chips to enhance the functionality of its vehicles and data centers, asserting Tesla's position as a leader in real-world AI applications.

The company is advancing rapidly, with its AI4 already implemented in vehicles, while AI5 is nearing completion, and AI6 is in the early stages of development. Tesla aims to produce a high-volume AI chip every 12 months, ultimately achieving a production rate that exceeds all other AI chips combined.

Musk highlighted the positive implications of these innovations, suggesting that the chips could save millions of lives by enhancing vehicle safety and facilitating superior medical care through the use of the Optimus platform.

This recent news reinforces Tesla's commitment to innovation and positions the company for potential growth in both market valuation and technological impact.

Important Notice And Disclaimer

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.