Amid softer EV demand and worsening profit margins this year, Tesla is setting its sights on AI as Elon Musk is betting more on self-driving and artificial intelligence. The AI hype has investors hooked in the past three months since Tesla’s underwhelming first-quarter deliveries and earnings numbers published in April.
For now, Tesla is stuck with its core business of manufacturing electric vehicles, and its market value as of Tuesday's close was about $772 billion. The shares are likely to dip this week after Tesla reported after market close on Tuesday another set of poor quarterly financial results. In after-hours trade, Tesla’s stock plunged by 7.77% to $246 apiece. Tesla reported a second-quarter net income plunging by 45% year-over-year to $1.
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