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Tesla robotaxi Google Waymo Austin
A driverless Tesla robotaxi and a Waymo autonomous vehicle make their way through roadwork on a residential street in Austin (Jay Janner/Getty Images)
Tale of the Gate

Tesla jumps amid AI bullishness as analyst says Full Self-Driving software is “already better at driving than the average American”

Tesla is betting that it can turn its consumer vehicles into autonomous cars faster than Google’s Waymo can roll out new vehicles.

Tesla is up sharply today, with investors and Wall Street looking more bullish on AI, at least for the moment.

That seems to include Piper Sandler analyst Alexander Potter, who wrote that Tesla’s latest Full Self-Driving software “is a truly impressive product that is (probably) already better at driving than the average American.”

Investors are hoping that Tesla can turn its consumer vehicles into autonomous cars faster than Google’s Waymo can roll out its robotaxis.

“There are millions of cars out there that, with a software update, become Full Self-Driving cars,” CEO Elon Musk said on the company’s recent earnings call. Potter, after attending an investor meeting at Tesla’s Fremont plant, also beamed about a “flawless robotaxi ride to the hotel,” and reiterated his $500 price target.

Waymo currently operates its autonomous service with more than 2,500 vehicles in five markets, and has plans to expand to more than 20. Just this morning, it announced planned expansion to Minneapolis, Tampa, and New Orleans.

Meanwhile, Musk has said he expects Tesla to operate 1,500 cars in its two markets, Austin and the Bay Area (where a safety monitor is present in the cars), by the end of the year, when it claims the service will be available in a total of 8 to 10 markets.

After getting drubbed recently, AI and tech companies are getting a broad lift following Nvidia’s blowout earnings yesterday, which also helped push Google to a record high.

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Google opened at an all-time high

It’s a good day to be an AI stock. It’s an especially good day to be Google, which opened at a record high this morning of $304.39.

The stock is soaring on Nvidia’s stellar earnings report yesterday, which is helping quiet talk of an AI bubble that recently contributed to a sell-off in tech stocks. On top of that, Google released its latest AI model, Gemini 3, this week to strong reception from AI leaderboards, analysts, and consumers.

And even if we are in an AI bubble, Sundar Pichai, CEO of Google and its parent company, Alphabet, says the search giant will come out on top.

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Musk: xAI to build 500-megawatt data center in Saudi Arabia with Humain using Nvidia GPUs

Today in Washington, DC, Elon Musk announced that xAI is developing a 500-megawatt AI data center in Saudi Arabia in partnership with Humain — the country’s state-owned AI company — using Nvidia chips.

Competitors OpenAI and Anthropic are also turning to access the vast stores of capital available from Middle East investors to fund their colossal data center plans.

In an awkward moment, Musk briefly appeared confused if the deal was for 500 megawatts or 500 gigawatts, pausing only to have Nvidia CEO Jensen Huang jump in and confirm it was for 500 megawatts.

Laughing off the gaffe, Musk joked about the cost of such a large project, saying, “That’ll be eight bazillion trillion dollars.”

In an awkward moment, Musk briefly appeared confused if the deal was for 500 megawatts or 500 gigawatts, pausing only to have Nvidia CEO Jensen Huang jump in and confirm it was for 500 megawatts.

Laughing off the gaffe, Musk joked about the cost of such a large project, saying, “That’ll be eight bazillion trillion dollars.”

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