Tesla(US:TSLA) Benzingaยท2025-11-16 08:15Core Insights - Tesla's CEO Elon Musk announced that the next-generation AI5 chips will not be available in sufficient quantities until mid-2027, delaying the transition to these new chips for Tesla production lines [1][2][3] Group 1: AI5 Chip Development - The AI5 chip is expected to significantly enhance the intelligence capabilities of Tesla vehicles, but the delay means a longer transition period than initially anticipated [3] - Musk emphasized the need for several hundred thousand completed AI5 boards to switch over production lines, indicating a substantial production requirement [2] Group 2: Future Developments - Work on the AI6 chip has already commenced, with samples and a small number of units expected in 2026, but high-volume production is projected for 2027 [4] - The AI6 chip is anticipated to achieve roughly double the performance of AI5, with a goal for volume production by mid-2028 [5] Group 3: Production Challenges - The delay in AI5 chip production highlights ongoing challenges for Tesla, despite Musk's efforts to expedite timelines by pressuring partners like Taiwan Semiconductor Manufacturing Co. and Samsung Electronics Co. [6] - A strategic collaboration with Samsung for co-producing the AI5 chip was intended to diversify production sources and enhance capacity, but the recent delay suggests difficulties in meeting Tesla's aggressive timelines [7] Group 4: Market Perception - Cathie Wood of ARK Invest noted the transformative potential of the AI5 chip for Tesla, indicating strong market interest and expectations surrounding its impact [8]