To The Moon

On the 22 May 2024 interview with Yahoo Finance, $NVIDIA Corp(NVDA)$ CEO Mr Jensen Huang offered strong praise for $Tesla Motors(TSLA)$ advancements in self-driving technology, even as other automakers ramp up their own autonomous driving efforts. To paraphrase - "Tesla is far ahead in self-driving cars," Huang remarked, acknowledging Tesla's significant head start in the field. (see below) However, he also supplemented that autonomous capabilities will eventually become standard in all vehicles. Huang's comments is pivotal for Tesla, as the company faces: Scrutiny. Increasing competition. …relating to its Full Self-Driving (FSD) technology that has just been rebranded to underscore “the need for driver supervision”, that is true because it is only at Level 2 (at most) of 6 levels (“0”to “5”). Despite the controversy surrounding its safety, Tesla CEO Elon Musk continues to champion FSD. Honestly he has to because there is nothing else a Tesla EV has to offer. Its technology is not the latest. Its interior has not changed or upgraded for ages. Its models are still the stale few. Its batteries are still Lithium-ion types. Nvidia CEO's endorsement underscores the high stakes and intense competition within the rapidly developing field of artificial intelligence (AI). As leading producer of AI chips, Nvidia finds itself at the centre of the AI race, supplying critical hardware to major players like Tesla, $Alphabet(GOOG)$ , $Meta Platforms, Inc.(META)$ and OpenAI. Mr CEO Musk has likened the current AI landscape to a high-stakes poker game, with Tesla betting heavily on Nvidia's technology. In a tweet dating back to January 2024, Mr CEO revealed that Tesla expects to spend over $500 million on Nvidia's AI chips in FY 2024. This highlighting the immense resources required to stay competitive in the AI arena. In a surprise turn of event on Tue, 28 May 2024 - after Memorial Day celebration, instead of recovering lost grounds, Tesla continued to tumble down the ladder. The praises sung by Nvidia CEO did not “naturally” convert to positive energy to halt Tesla’s continuous fall from last Fri, 24 May 2024. Instead, it was Nvidia that continued its upwards ascend, making further inroads into the $1,100 resistant level. (see below) Tesla (Blue) vs Nvidia (Red) On Tues, 28 May 2024 when trading resumed: Tesla dipped further by -1.39% to $176.75 per share. Its pre-market price for Wednesday is a tentative further decline of -1.15% to $174.71 per share. Nvidia on the other hand rose by +7.13% to $1,140.59 per share. Its pre-market indicative price going into Wednesday is a further rise of +0.17% to $1,142.50 per share. Tesla Continual Fall - what give? The EV maker demise was due to recommendations by Glass Lewis over the recent weekend. (see below) What is Glass Lewis? It is a major American proxy advisory services company. Glass Lewis has recommended that shareholders: Reject a proposal to reinstate CEO Elon Musk’s pay package worth $56 billion, awarded in 2018. It’s argument, (a) the pay deal is "excessive" and (b) its "dilutive impact" on current shareholders. Opposed Tesla's proposal to reincorporate in Texas from Delaware. Opposed the re-electing Kimbal Musk, Elon's brother, to the Tesla board, citing he is not independent enough. The award was voided by Delware court due to Tesla’s board failure to disclose potential conflicts of interest between Mr CEO and the board. Guess what, Tesla’s board simply put the old pay package up for a new vote with additional disclosures. This will be decided at the company’s shareholder meeting on 13 Jun 2024. A ‘NO’ vote would send the board back to the compensation drawing board. It will definitely result in a bitch-fit by Mr CEO. Mr CEO has already hinted he could develop AI and robotics outside of Tesla if: He does not get the pay deal reinstated. Plus further compensation to give him 25% voting control. His XAI startup has already hired away a number of Tesla staff. Is this a veiled threat in the making? My Viewpoints: (mine only) Was it a deliberate move by Nvidia CEO to heap praises on Tesla and in the process gets the attention re-focus back on Nvidia? If so, its damn strategic! There is no doubt that Mr Jensen Huang knows a lot about AI on semiconductor chips. On his viewpoint on Tesla being at the forefront of autonomous driving - I have my reservations. What does he know about Tesla capabilities ? Has he made use of it ? What does he know about Waymo capabilities? I think investors and readers alike should realize that Mr CEO did not participate in the invention of Tesla’s first generation EV - the Roadster. He did however, crack the DNA on how to scale EV production that is his credit. Apart from that, he has not value add to Tesla further as he is too busy in limelight projects scattered through his many companies. This is why he does not deserve the $56 billion pay package. Not to mention being taken hostage over AI project in Tesla is an act by hooligans, unbefitting of a CEO. He should do the right thing and step down. Must Read: Click on below titles to access. Give a like & help to Repost ok. Thanks. TSLA, AMD, MARA: Still Rule This Week ? Economic Data rules US Market this Week. Nvidia ? US Market Change: Asia Investors Affected ? Do you think think Nvidia deserves the stock price rise ? Do you think Tesla CEO deserves the $56 billion pay package, that is indecent by any standards ? If you find this post interesting, give it wings! ️ Repost and share the insights ? Do consider “Follow me” and get firsthand read of my daily new post. Thank you. @Daily_Discussion @TigerPM @TigerStars @Tiger_SG @TigerEvents