Nvidia CEO Jensen Huang Says:

By Douglas A. McIntyre Published Jun 12, 9:15AM EDT

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Nvidia Corp. (NASDAQ: NVDA) CEO Jensen Huang expects Tesla Inc. (NASDAQ: TSLA) to be the leader in electric and autonomous vehicles.
The pending rollout of its robotaxi will prove whether Huang is correct.

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Nvidia CEO Jensen Huang Says: — © Xiaolu Chu / Getty Images News via Getty Images

Nvidia Corp. (NASDAQ: NVDA | NVDA Price Prediction) CEO Jensen Huang expects Tesla Inc. (NASDAQ: TSLA) to be the leader in the electric vehicle (EV) artificial intelligence (AI) business. He told Yahoo, “Tesla is far ahead in self-driving cars, but every single car, someday, will have to have autonomous capability.”

If Huang is correct, embattled Tesla may be on the verge of a turnaround. Its sales in China and across the EU have slipped sharply. In several European countries, the decline in May was in the high double-digit percentages. Although Tesla does not release data in the United States, its market share is likely to have fallen below 50%. GM, Ford, and Hyundai/Kia have growing EV sales.

The primary reason Tesla sales have dropped is likely Tesla CEO Elon Musk’s association with Donald Trump and his efforts to reduce funding for large parts of the U.S. government. Some of those cuts involve departments that are considered essential to the federal government’s operations. The plans have triggered tens of thousands of layoffs, as well as protests at Tesla dealerships.

Later this month, Musk plans to put Tesla’s robotaxi on the road in Austin. The vehicle will test whether Tesla can create an actual self-driving car that requires no human intervention whatsoever. There have been several accidents that have involved Tesla’s current “Autopilot and Full Self-Driving (Supervised)” service. Tesla has repeatedly stated that drivers of cars with this service must keep their eyes on the road.

Musk recently commented, “We are being super paranoid about safety, so the date could shift.” He is referring to the Austin release date. If the delay lasts into July, there will be some concern about the quality of the new service.

Tesla must contend with other companies that claim to have fully automated self-driving systems. The first of these is Alphabet’s Waymo, which has been on the road for several years in several cities. If the Tesla product does not best this, Musk’s comments about the Tesla product will be undermined. And Tesla’s stock price is based mainly on the success of the Austin rollout

Austin will prove whether Huang is correct.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.