Tesla (TSLA) surges on Elon Musk trying to ride AI wave

Tesla (TSLA) Surges on Elon Musk Trying to Ride AI Wave Tesla’s stock (TSLA) surged 12% today, despite a miss on revenue and earnings expectations in Q1 2024.

What gave investors more confidence in Tesla?

Tesla’s automotive gross margins virtually stayed the same despite further price costs, the Cybertruck ramp, and the Model 3 Highland ramp in Fremont.

The company confirmed that if you remove those, margins did improve in Q1.

Additionally, Tesla announced a change in plans to bring cheaper vehicles to market, which was a big positive for investors.

The third factor contributing to Tesla’s stock surge is the AI wave.

Elon Musk is virtually putting Tesla all-in on Robotaxi and is positioning the company to ride the AI wave that is currently taking over the tech industry.

Tesla is gaining credibility regarding AI and its self-driving effort, which is contributing to the stock surge.

Tesla now has the AI training capacity to compete with AI players and it is growing fast.

Investors are reacting positively to the news that Tesla is going to use spare capacity to quickly bring new lower-cost models to market.

With v12 Tesla deserves a meaningful credibility bump in the self-driving space.