Report: Elon Musk Rerouted Nvidia Chips Destined for Tesla to X

Chris Teague
by Chris Teague

Elon Musk has been under scrutiny for the way he handles his duties at Tesla for a while now, and a recently uncovered email won’t help his case. CNBC recently obtained emails that show Musk asking Nvidia to prioritize processor shipments to his social media company, X, over Tesla.

While it’s possible that Musk had a legitimate reason for the ask, including that Tesla might not have been ready to accept a shipment from Nvidia, the emails highlight the automaker’s need for independent governance and a significant conflict of interest from its CEO. They also coincide with Tesla’s delay of an updated Gigafactory facility in Texas, which is planned to house a powerful computing cluster that would rely on a large number of processors.

Musk’s push to prioritize chips for X delayed Tesla’s efforts by months and could have implications for the automaker’s robotaxi and AI projects. The company plans to announce the robotaxi program in August, and some expect Musk to make the project the guiding light for Tesla’s business operations going forward.

Tesla shares fell slightly when the news broke, but there are more significant problems for the automaker and its CEO. Many have accused Musk of being only a part-time leader, as he splits his time between a handful of companies, including Neuralink, X, SpaceX, and The Boring Company.

Outside of this development, Tesla and Musk have plenty of distractions to keep them busy. The CEO and his supporters are pushing for approval of his massive compensation package worth tens of billions of dollars, and the automaker continues to face increasing scrutiny over its driver assistance technologies.

[Images: Tesla]

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Chris Teague
Chris Teague

Chris grew up in, under, and around cars, but took the long way around to becoming an automotive writer. After a career in technology consulting and a trip through business school, Chris began writing about the automotive industry as a way to reconnect with his passion and get behind the wheel of a new car every week. He focuses on taking complex industry stories and making them digestible by any reader. Just don’t expect him to stay away from high-mileage Porsches.

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6 of 45 comments
  • Cprescott Cprescott on Jun 04, 2024

    This wouldn't be an issue had Apple done the same moving chips from low priced products to higher profit items.

    • See 1 previous
    • EBFlex EBFlex on Jun 05, 2024

      Daily reminder that everything TrollGhost says is a lie and he thinks diesel engines do not pollute.

  • MrIcky MrIcky on Jun 05, 2024

    So I had to go read real news to find out what the problem here is: the main actual issue is that Tesla is publicly held and X is privately held so shareholders may actually have a case if they decide to pursue it.

    To clarify what these chips are for: they were going to be used in the data center to analyze driver data. Now they'll be used at X to analyze searches to better push content.

    "“Elon prioritizing X H100 GPU cluster deployment at X versus Tesla by redirecting 12k of shipped H100 GPUs originally slated for Tesla to X instead,” an Nvidia memo from December said. “In exchange, original X orders of 12k H100 slated for Jan and June to be redirected to Tesla.”"

  • VoGhost Fantastic work by Honda design. When I first saw the pictures, I thought "Is that a second gen Acura NSX?"
  • V16 2025 VW GLI...or 2025 Honda Civic SI? Same target audience, similar price points. Both are rays of sun in the gray world of SUV'S.
  • FreedMike Said this before and I'll say it again: I'm not that exercised about this whole "pay for a subscription" thing, as long as the deal's reasonable. And here's how you make it reasonable: offer it a monthly charge. Let's say that adaptive headlights are a $500 option on this vehicle, and the subscription is $15 a month, or $540 over a three year lease. So you try the feature for a month, and if you like it, you keep it; if you don't, then you discontinue it, like a Netflix subscription. In any case, you didn't get charged $500 up front the feature. That's not a bad deal.In my case, let's say VW offers an over the air chip reflash that gives me another 25 hp. The total price of the upgrade is $1,000 (which is what a reflash would cost you in the aftermarket). If they offered me a one time monthly subscription for $50 to try it out, I'd take it. In other words, maybe the news isn't all bad.
  • 2ACL A good car, but - at least in this configuration -not one that should command a premium. Its qualities just aren't as enduring as those of Honda's contemporary sports cars. For better or worse, this is a formula they remain able to replicate.
  • Jalop1991 I just read that Tesla's profits are WAY down "as the electric vehicle company has faced both more EV competition from established automakers and a slowing of overall EV sales growth." This Cadillac wouldn't help Tesla at all, but the slowing market of EV sales overall means this should be a halo/boutique car. Regardless, yes, they should make it.