Tesla to break eight-week losing streak. What's driving the stock?

00:00 Speaker A

All right, Ross. So you write about how Tesla trying to stop an eight- week losing streak. It’s poise, you say to finish the week actually higher. Now, why is that? Is that you say short-term technical bounce, you say, no, no, this is real momentum. What’s going on?

00:20 Ross

That’s that’s the question, right? Because so on Wednesday there was a big bounce in the stock, you know, after eight weeks of of losses, you know, uh Al Ruda of Barons was one of I saw he mentioned that first and and he and yeah, it was the stock was mired in a pretty rough slump here in the spring. Uh had a big pop on Wednesday. That coincided with some news about Musk talking about how they they taped out the latest AI 5 chip or they finished the the design process.

00:54 Speaker A

What stop right there to bring us up to speed. What is that ship and why are investors excited?

00:58 Ross

It’s their latest sort of AI chip. They call it like that would power, let’s say FSD driving in cars, optimist robots, a number of different things that it was an in-house-made chip that they that they’re making and they want to eventually make in the TerraFab, right? Among other things, that’s that big project they’re doing in Texas to to make chips. So, there was some news must talking about that chip.

01:21 Ross

Um some people uh use that as a launching launching pad for the stock, right? I think Jean Monster said he thought that the 80% of the move was because of this news. Seemed to me a little flimsy, talking about the designer chip is completely, they haven’t start making anything yet. So I I guess there was sort of like you said, maybe a technical reason. there was this the the sentiment had been so bad on the stock.

01:46 Ross

Uh you have some broader market, obviously today, good stuff today, good stuff this week and then that sort of launched the stock and then Nasdaq tech stocks too. But so I guess that’s what’s happening. But then you also have earnings coming up and that’s the next phase or the next catalyst maybe for

01:59 Speaker A

What are you listening there for earnings by Ram Curious? What’s on your radar?

02:02 Ross

You know, it’s been it’s always been sort of like, what are we going to hear about FSD? What are we going to hear about Robotaxis? And Morgan Stanley talking about how they might hit 10 billion miles of FSD driving. That’s a that’s a nice milestone to have and you can use that train use that data for uh training the software and and and optimizing the whole system. But yeah, we want to hear about FSD, we want to hear about robotaxi rollout. What what’s going on with the beyond Austin, beyond Bay Area.

02:29 Ross

Are we going to see those new territories, new regions uh activated? Are we going to see the safe driver removed? That sort of thing. Also, we’ve seen the Cybercab uh actually being built in Texas right now. Uh showing pictures of it online on the parking lots. When is that going to come out? We, so production is has begun. Is it just pilot production? Is it actually true production? Are we going to get these on on the road? Apparently, no steering wheel, no pedals. So, that’s happening.