TLDR
- Nvidia CEO Jensen Huang projected $1 trillion in AI infrastructure demand between 2025 and 2027 at its GTC conference
- Uber plans to launch DRIVE-enabled robo-taxis across 28 global markets by 2028, a market Tesla had been targeting
- BYD, Hyundai, and Nissan also announced plans to adopt Nvidia’s DRIVE platform for autonomous driving
- Morgan Stanley values Tesla’s self-driving tech at ~$270 per share, or roughly $1.2 trillion — a valuation that depends on it staying unique
- Tesla CEO Elon Musk announced the “Terafab Project” launches in 7 days, hinting at a push into AI hardware
Tesla has long traded on a premium tied to its AI and autonomous driving ambitions. But Nvidia’s GTC conference on Monday put a spotlight on a question investors may need to sit with: what happens to that premium if self-driving becomes a commodity?
NVIDIA CEO Jensen Huang today: “The Chat-GPT moment for self-driving cars has arrived.
NVIDIA announced that they’re now expanding their self-driving partnership to BYD, Nissan, Hyundai, and Geely.
Their automotive partners:
• GM
• Toyota
• Mercedes-Benz
• Jaguar Land… pic.twitter.com/qs5HYP5Val— Nic Cruz Patane (@niccruzpatane) March 16, 2026
Nvidia CEO Jensen Huang took the stage and projected $1 trillion in AI infrastructure demand between 2025 and 2027. The headliner, for Tesla watchers, was Nvidia’s DRIVE platform — a system designed to turn any car into a robo-taxi using the DRIVE AGX Thor computer paired with cameras and lidar sensors.
Uber announced it will roll out DRIVE-enabled robo-taxis across 28 global markets by 2028. That’s a deal that could have gone to Tesla, which is building its own Cybercab and developing its own self-driving fleet business.
It wasn’t just Uber. BYD, Hyundai, and Nissan all confirmed plans to adopt DRIVE for their autonomous programs. Each new partner broadens Nvidia’s footprint in a space Tesla has been counting on for future growth.
Tesla’s EV sales have dropped for two consecutive years in both the U.S. and China. The stock is still up 141% over the past two years, but that run has been driven largely by robo-taxi and AI optimism, not vehicle sales momentum.
Morgan Stanley puts a $270-per-share value on Tesla’s autonomous driving technology alone — about $1.2 trillion based on its 4.5 billion fully diluted shares. That number rests on the assumption that Tesla’s self-driving capabilities remain distinctive enough to command premium economics.
If Nvidia Commoditizes Self-Driving, That Changes the Math
If DRIVE becomes the default stack for automakers worldwide, autonomous driving shifts from a moat to a feature. Fleet operators and consumers might pay for it, but probably not at the margins that justify a trillion-dollar valuation.
Musk has brushed off the concern. He said in early 2026 that he’s “not losing any sleep” over Nvidia’s self-driving tech and added that he “genuinely hopes Nvidia succeeds.” Whether that confidence is strategic or sincere, investors are left to do their own math.
On the hardware side, Tesla is currently a major Nvidia customer. Its AI teams use large GPU clusters to train the models behind Full Self-Driving and its robotics projects. That makes Tesla one of the fastest-growing buyers of Nvidia compute.
Tesla’s Terafab Project Signals a Longer Play
But Musk’s latest post on X announced the “Terafab Project” launching within the week. It signals Tesla wants a bigger role in AI infrastructure — not just as a consumer of chips, but as a builder of its own hardware layer. Tesla already has its own vehicle silicon and the Dojo training system.
The pattern mirrors what Alphabet and Amazon have done — developing custom AI chips to reduce dependence on suppliers like Nvidia.
Tesla stock was down 0.1% in premarket Tuesday at $395. Nvidia was up 0.3% at $183.76. Uber climbed 2.6% to $76.60 following its DRIVE announcement.
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