Tesla (TSLA) Stock: Why Musk Isn’t Worried About Nvidia’s AI Challenge

TLDR

• Elon Musk said Nvidia’s autonomous driving technology won’t compete with Tesla FSD for 5-6 years minimum.
• Nvidia launched Alpamayo at CES 2026, an open-source AI model for self-driving vehicles using camera input.
• Legacy automakers need years to integrate cameras and AI computers into production vehicles at scale.
• Nvidia CEO Jensen Huang called Tesla’s FSD stack “the most advanced AV stack in the world.”
• Tesla runs a limited robotaxi service in Austin and a supervised ride-hailing service in San Francisco.

Elon Musk said Nvidia’s new self-driving technology won’t threaten Tesla for at least five to six years. The Tesla CEO responded to Nvidia’s announcement at CES 2026 on Monday.

Tesla, Inc., TSLA

Nvidia unveiled Alpamayo, an open-source AI model family for autonomous vehicles. The system uses camera-based video input to navigate city streets. Nvidia demonstrated the technology driving a Mercedes through Las Vegas.

Musk explained the timeline on X. He said achieving safer-than-human driving takes several years. Legacy automakers then face additional delays integrating hardware.

The Tesla CEO described another challenge. Getting to 99% accuracy is easy. Solving the remaining edge cases is “super hard.”

Nvidia’s Platform Strategy

Nvidia takes a different approach than Tesla. The company builds full autonomous vehicle stacks for other automakers. Nvidia doesn’t manufacture self-driving cars.

Tesla’s Robotaxi Plans

Full Self-Driving remains central to Tesla’s growth strategy. The company launched a limited robotaxi service in Austin last summer. Tesla operates another ride-hailing service in San Francisco with drivers present.

Musk has promised fully autonomous vehicles for over a decade. The company said last August it’s training a new FSD model. The technology still requires driver supervision.

Musk’s 5-6 year timeline suggests he sees limited near-term pressure. The gap between partial autonomy and safer-than-human driving remains years away. Legacy automakers then need additional years for production integration at scale.

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