Tesla Stock (TSLA) is getting crushed following chipmaker Nvidia Corp’s (NVDA) decision self-driving. Tesla stock is down 7%.
Nvidia has suspended self-driving tests across the globe, a week after an Uber Technologies Inc )UBER) autonomous vehicle hit and killed a woman crossing the street in Arizona
While Tesla is getting pounded so is NVDA stock. NVDA shares reversed course in afternoon trading after the news and were down 4 percent at $234.50, wiping out nearly $6 billion in market value.
“We are temporarily suspending the testing of our self-driving cars on public roads to learn from the Uber incident,” a company spokesman said.
“Our global fleet of manually driven data collection vehicles continue to operate.”
Uber suspended North American tests of its self-driving vehicles after the fatal collision on March 18 in Tempe, Arizona.
The incident has raised questions about the safety of autonomous technology in general, and of Uber’s system specifically.
Nvidia is testing its technology globally including in New Jersey, Santa Clara, Japan and Germany.
Nvidia has no choice but to take steps in the context of the fear, uncertainty and outrage likely to be stimulated by a robot car killing a human being,” Roger Lanctot, an automotive technology analyst with Strategy Analytics, wrote in a blog post bit.ly/2GaIBCN on Tuesday.
“This is precisely the type of event that is capable of slaying a nascent industry in the crib,” Lanctot wrote.
Nvidia leads the autonomous industry with its artificial intelligence platform and has partnered with major global automakers such as Volkswagen AG (VOWG_p.DE), Tesla Inc and Audi AG.
Uber has been using Nvidia’s computing technology since its first test fleet of Volvo SC90 SUVS were deployed in 2016.
Around 320 firms involved in self-driving cars – from software developers, automakers and their suppliers, sensor and mapping companies – use Nvidia Drive platform, according to the company’s website.
So what should Tesla stock shareholders do? This is perhaps the best buying opportunity we have seen in the stock in some time. Shares have not been this crushed in many weeks, and down 7% is a pretty bad beat. We recommend a buy here for a trade.
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