Technology

Tesla Inc (NASDAQ:TSLA) Settles On Intel Corporation (NASDAQ:INTC) For New Chip

The stock of Tesla Inc (NASDAQ:TSLA) closed at $345.25 gaining 0.08% in yesterday’s trading session. This provider may settle for Intel Corporation (NASDAQ:INTC) in the manufacture of chips for the “infotainment” system in the cars of Tesla Inc (NASDAQ:TSLA).

A lot of people expected it to chose NVIDIA Corporation (NASDAQ:NVDA), but that didn’t happen. Shortly after the announcement of the news, the shares of Intel were seen to move a notch higher.

The on-board entertainment and information system behind the large screens in the center console of Tesla cars will be powered by the Intel chips. Most of the car’s features are controlled by the drivers through those screens. For instance, the Model 3 sedan manufactured by Tesla is practically devoid of any dials and switches on its dashboard. Almost all the processes require that users control everything through the on-screen system.

News reporters moved out to try and engage with both Nvidia and Intel in a bid to get them to comment in relation to the matter. Unfortunately, none of them was immediately available to comment. In an in an email to CNBC, Tesla spokesperson outlined that it was the provider’s policy to always take a back-seat whenever it was asked to comment on anything it considered speculation.

Intel, the world’s largest chipmaker, is considering lowering its dependence on personal computers. Asides from that, it has also been trying to persuade the various car makers on the great need for them to utilize its powerful processors in the manufacture of vehicles. Such vehicles will be capable of making more important decisions. Intel has been pretty silent regarding the revenue it obtains from the market.

One of the top officials working with Tesla opined, “The main prize for chipmakers will be providing the computing engine that allows cars to become fully autonomous. Those systems are still in development with automakers and chipmakers announcing test programs with multiple partners.”

A large number of cars in the current times are being manufactured with more electronics inside. That has made the automotive market increasingly important to most of the chipmakers. In the past two years, Nvidia’s stock surged more than sixfold.

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