Tesla has lately been showing a mellow stock stance, having spent the majority of 2025 in stark public scrutiny. With the AI revolution sweeping the US markets as of late, Tesla’s Elon Musk has shared a new fantastic update, stating how Tesla has long been exploring the chip-making business and that it’s ready to take the chip business more aggressively. Will this new narrative help shape Tesla stock prices in a lucrative manner?
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Tesla Stock Surge: The Primary Reason Is Here
In his latest X update, Tesla’s CEO Elon Musk confessed to a new development, the one that involves his firm exploring the chip business more actively. Talking about it in-depth, Musk shared how Tesla is actively exploring the AI chip business, and it has been years since the company has been working on the same narrative. Moreover, Musk shared how the Tesla team has designed several million chips over the years, and it continues to explore the domain more lucratively.
“Most people don’t know that Tesla has had an advanced AI chip and board engineering team for many years. That team has already designed and deployed several million AI chips in our cars and data centers. These chips are what enable Tesla to be the leader in real-world AI.”
He later shared how current Tesla cars are running on an AI4 chip, with the new AI5 chips currently under work. Musk later added how Tesla may expedite the AI chip-making business, expanding its business over the years. The Tesla CEO was quick to add how these chips may play a vital role in changing the world in a “positive light,” helping people explore safe driving and delivering advanced medical care via Optimus.
“The current version in cars is AI4; we are close to taping out AI5 and are starting work on AI6. Our goal is to bring a new AI chip design to volume production every 12 months. We expect to build chips at higher volumes ultimately than all other AI chips combined. Read that sentence again, as I’m not kidding. These chips will profoundly change the world in positive ways, saving millions of lives due to safer driving and providing advanced medical care to all people via Optimus.”
Tesla Stock: Will This AI Chip Domain Help the Stock Surge High?
This new narrative is helping investors gain clarity on Tesla’s stock goals, with investors eager to explore the stock more eagerly.
Some experts already believe that Tesla’s AI chip innovations have the power to change the world.
“Elon is basically making it clear that physical AI is a compute problem & $TSLA intends to own the silicon that solves it. The company already has millions of its own AI chips deployed in cars & data centers, it is on the 4th generation in production, AI5 is about to tape out & AI6 is already underway. It would be wild if they really hit annual chip refresh cycles & ship more AI silicon into the real world than every other player combined. Because at that point Tesla becomes the only company with a closed-loop system for physical AI where the fleet generates the data, the models are trained on their own stack & the inference runs on silicon they designed themselves. That is the advantage nobody else has.”
Per TipRanks TSLA stats, Tesla is aiming to hit $600 in the near future.
“The average price target for Tesla is 383.37. This is based on 34 Wall Street analysts’ 12-month price targets, issued in the past 3 months. The highest analyst price target is $600.00, and the lowest forecast is $19.05. The average price target represents a -1.97% decrease from the current price of $391.09.”
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