Broke the downtrend line and headed to the next resistance at $360. OBV shows that in May buyers took the lead.😃
Tesla Stock Climbs In A Buy Zone As Elon Musk Makes These Business Comments
KIT NORTON Updated 12:51 PM ET 08/11/2025
Tesla (TSLA) stock continued to trade around aggressive early entries during Monday's stock market as CEO Elon Musk over the weekend explained his reasons for ditching the Dojo supercomputer. Musk also claimed the robotaxi ride-hailing service will soon open to the public.
TSLA shares surged nearly 9% to 329.65 last week, regaining its 50-day and 200-day moving averages, as Tesla offered a big pay deal to Musk, who later teased a big upcoming full self-driving improvement.
On Friday, shares flirted with a downward-sloping trendline from the top of the consolidation.
Musk on Sunday posted to X that he "had to shut down Dojo and make some tough personnel choices" as "it became clear" that the path Tesla's Dojo supercomputer had run into an "evolutionary dead end."
The Tesla CEO said the decision was made with attention shifting to AI6 chips, which will power the company's upcoming self-driving systems known as Hardware 6, or HW6. The company's vehicles currently are on HW4.
Musk's public statement that Dojo is indeed dead comes after Bloomberg reported last week that the EV giant has scrapped its Dojo effort and disbanded the team, as Musk shifts to relying on Nvidia (NVDA) and Advanced Micro Devices (AMD) for compute chips along with Samsung for manufacturing.
As recently as the Q2 earnings call in late July, musk touted Dojo efforts. The Dojo supercomputer, which Morgan Stanley analyst Adam Jonas said in 2023 could add half a trillion dollars in value to Tesla, was used to train the EV giant's self-driving systems, the humanoid Optimus robot and other AI efforts.
Jonas on Sunday wrote in a investors note that Tesla's decision to ax Dojo could be a sign the EV giant is in a "DOGE-like efficiency drive" to reduce costs. The Morgan Stanley Tesla bull added that Musk's xAI company "has been shouldering more of the AI 'brain' development."
"Elon Musk's privately held xAI continues to expand its AI capabilities, training on data from X (formerly known as Twitter) as well as real-world vision data from TSLA. A potential scaling back/elimination of Dojo could increase the rationale for further cooperation between Tesla and xAI," Jonas wrote.
Last week, Musk on X said Tesla is streamlining its efforts to focus on developing inference chips to allow its AI models to make decisions in real-time.
"It doesn't make sense for Tesla to divide its resources and scale two quite different AI chip designs," Musk wrote Thursday night. "The Tesla AI5, AI6 and subsequent chips will be excellent for inference and at least pretty good for training. All effort is focused on that."
Tesla also recently signed a $16 billion deal with Samsung in late July for AI chips. At the time, Musk said that Samsung's new Texas fab facility will be "dedicated to making Tesla's next-generation AI6 chip" with the aim of using the new memory chips for Tesla's humanoid robot Optimus, fully autonomous self-driving vehicles and AI data centers.
Robotaxi Tail Winds
Musk also continued to offer hints over the weekend about the future of Tesla's ride-hailing service.
The Tesla head late on Sunday said on X that the robotaxi service will be "open access next month." This would mean that prospective consumers would not need a special invite in order to use the limited ride-hailing service. However, Musk did not make it clear if the ride-hailing service in Austin, Texas, or the one in the Bay Area in California would be "open access."
Tesla officially expanded its ride-hailing service to the Bay Area, with safety drivers, two weeks ago. A relatively small number of Tesla vehicles are operating in the Bay Area and in Austin, Texas. The service is open to influencers and other invitees, not the general public.
Current Action: Tesla is in a choppy consolidation that has a proper buy point of 367.71, according to IBD MarketSurge chart analysis. Tesla was added to IBD Leaderboard Monday as it cleared a handle-like entry at 338. The relative strength line is rising as shares look to extend a three-day winning streak that saw them retake their converged 50- and 200-day moving averages. Earnings and sales have declined in the latest two quarters but the stock rose last week as the company scrapped its Dojo supercomputer project. Over the weekend, Chief Executive Elon Musk announced that the robotaxi service would be soon open to the public.
Market Data 
Markets 
AI
