Tesla is somewhat expanding its "robotaxi" service in Austin, Texas, after TSLA stock broke out past a buy point on Tuesday. Meanwhile, Nvidia reports earnings after Wednesday's stock market close, with CEO Elon Musk saying Tesla will rely even more heavily on the AI-chip giant.
Late Tuesday, Tesla's Robotaxi account on X announced it has increased the service area in Austin to 173 square miles, up from the previous 91 square miles. Tesla added that it has increased the number of Model Y vehicles in the fleet by 50%. The EV giant has not confirmed how many vehicles have been available in the ride-hailing service area, but it is widely believed to be around 10. Based on that estimate, a 50% increase would mean the total number of vehicles is now 15 or slightly higher.
A bigger geofence with a small increase in vehicles could extend wait times for passengers, which have often been long. Tesla's "robotaxi" service, which uses safety monitors in Austin and safety drivers in the San Francisco Bay Area, is still only open to influencers and other invitees. CEO Elon Musk has said the riding-hailing service will be opened up in the near future.
Tesla Stock
Shares moved as high as 355.39 intraday before ending Wednesday's stock market down 0.6% to 349.60. Tesla stock rose 1.5% to 351.67 on Tuesday, topping a 348.98 handle buy point. TSLA has surged around 9% in the past three sessions, roaring back above all its moving averages on Friday.
Tesla stock is on SwingTrader.
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Nvidia Earnings Loom For Tesla
The stock market awaits Nvidia's fiscal 2026 second-quarter earnings late Wednesday. Tesla investors may want to pay attention to commentary about the EV giant. Earlier this month, Musk and Tesla scrapped its Dojo supercomputer, which had been long touted as the in-house solution to training its autonomous driving and AI models.
Musk has now shifted to relying on Nvidia and Advanced Micro Devices for compute chips along with Samsung for manufacturing for the new memory chips to be used in Tesla's humanoid robot Optimus, fully autonomous self-driving vehicles and AI data centers.
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Tesla's plans seem to be for AI5 and AI6 chips to power the company's upcoming self-driving systems known as Hardware 5 and Hardware 6, or HW5 and HW6. The company's vehicles currently are on HW4.
Tesla Stock Trend
Reflecting retail investor interest in TSLA, Tesla stock remains one of the top tracked by the subreddit investor group r/WallStreetBets. Website ApeWisdom showed TSLA as the sixth top-trending issue on r/WallStreetBets as of Wednesday.
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Tesla stock was up 13.4% in August at the end of Wednesday's stock market. The current base formed within a much-larger consolidation.
The relative strength line has lagged since late May and the end of last year, reflecting lagging Tesla performance vs. the S&P 500. However, but it has hit a two-month best.
In late July, TSLA undercut its 50-day and 200-day moving averages as Musk warned of a "few rough quarters" ahead in the Q2 conference call.
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As of Wednesday's stock market close, Tesla stock was up around 47% since the April 22 Q1 conference call, lifted by robotaxi bets. Shares are down about 13% for the year, and 28% below their all-time high of 488.54.
Tesla stock has a 21-day average true range of 3.60%. The ATR metric, available on IBD's MarketSurge charting tool, gauges the characteristic breadth of a stock's behavior. Stocks that tend to make large jumps or dives in daily stock market action, the kind that can trigger sell rules and shake investors out of a stock, have a high ATR. Stocks that tend to make more incremental moves have lower ATRs.
Tesla stock has a 65 Composite Rating out of a best-possible 99. The stock also has an 80 Relative Strength Rating and a 54 EPS Rating.
Please follow Kit Norton on X @KitNorton for more coverage.
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