Tesla jumps over 6% after Elon Musk highlights progress in proprietary AI hardware
Tesla shares rose 6.57% this Wednesday (15), driven by an announcement from Elon Musk regarding a major milestone in the company’s new artificial intelligence chip.
In a post on X, Musk confirmed that the AI5 chip (also referred to as A15) has reached a key engineering stage, moving closer to production.
The update boosted investor confidence in Tesla’s in-house hardware development strategy.
🧠 Chip Development Fuels Market Optimism
In his post, Musk congratulated the engineering team for achieving the “tape-out” phase — a critical step in semiconductor manufacturing.
He also revealed that additional chips are already in development, including AI6 and Dojo3, signaling Tesla’s growing focus on artificial intelligence.
🏦 UBS Upgrades Stock Outlook
Another factor supporting the stock rally was a rating change by UBS, which upgraded Tesla shares from “sell” to “hold.”
Such changes act as a key signal for institutional investors, indicating that bearish sentiment around the company is easing.
🚗 Software Update Strengthens Ecosystem
Tesla also rolled out a software update that simplifies subscriptions to its Full Self-Driving (Supervised) system.
The update allows drivers to access detailed usage statistics directly from the vehicle’s interface, reinforcing Tesla’s software-driven revenue model.
🏭 Expansion into Chips and Robotics
The company plans to expand its technological independence by building two chip manufacturing facilities in Austin, Texas, in partnership with SpaceX.
The initiative, known as Terafab, will also involve collaboration with Intel to produce chips for vehicles, robots, and even orbital data centers.
In robotics, Tesla is prioritizing development of its humanoid robot Optimus. Part of its Fremont factory is being adapted for this purpose, while focus shifts away from models like the Model S and Model X.
📉 Operational Challenges Remain
Despite the positive momentum, Tesla continues to face operational challenges. The company delivered 358,000 vehicles in the first quarter of 2026, representing a 14% decline compared to the previous quarter.
Based on these results and expectations around a new compact SUV, UBS adjusted Tesla’s price target to $352.
A price target represents analysts’ estimate of a stock’s future value, typically over a 12-month period, serving as a benchmark for investors.
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