tesla drops nvidia, page-41

Shares in Nvidia Corporation (NASDAQ:NVDA) dipped in early deals on Thursday after Tesla Inc (NASDAQ:TSLA) boss Elon Musk hinted the electric car maker was considering dropping Nvidia’s technology from its vehicles.
Tesla has been installing Nvidia supercomputers in all its models in preparation for fully autonomous driving since last year, although it designs its own software.

In a conference call following Wednesday’s disappointing third quarter update, Musk said that the current technology in its cars is capable of driving at the same standard as a human but cautioned that that still might not be safe enough for regulators.

“If it does turn out that a computer upgrade is necessary in order to meet the regulatory requirements in that area, we will replace the computer with something with greater power, which is sort of unplugging the other one, plugging the other one in,” Musk said in Wednesday’s call. “But we feel confident of the competitiveness of our hardware strategy.”

He added that Tesla has plans in place with regards to hardware, saying he was “very optimistic on that front” but not “ready to say anything [more] now”.

Nvidia stock dipped 1.1% on Thursday morning to US$205.04 on the back of the news.
Earlier this fall reports suggested that Tesla was working hard to design its own chips under its well-known chip designer and autopilot executive Jim Keller, who previously worked for Apple Inc (NASDAQ:AAPL) and Advanced Micro Devices Inc (NASDAQ:AMD).

Interestingly AMD said in last week’s third quarter earnings report that another company had licensed its patents, although it refused to disclose who the new customer was.

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