So, as per the reports from CNBC, Elon Musk has made a move to prioritize shipment of chips from Nvidia to X and xAI. The problem, you might ask? These chips were originally reserved for Tesla.

“Elon prioritizing X H100 GPU cluster deployment at X versus Tesla by redirecting 12K of shipped H100 GPUs originally slated for Tesla to X instead,” an internal Nvidia memo from December showed, according to the CNBC report. “In exchange, original X orders of 12K H100 slated for Jan and June to be redirected to Tesla”

Why is this serious? Well, for the investors, it is unacceptable. This would be a conflict of interest they say. This decision would delay more than $500mn processors to the Tesla not just by days, but by months. Musk, is a part-time CEO of Tesla, is involved in several major companies like SpaceX, X (formerly, Twitter) and an AI startup, xAI. To the unversed, xAI’s Grok is a competitor to ChatGpt, Gemini and others.

On the other hand, Nvidia has already warned of its inability to keep up with the huge demand for its chips. Everyone needs Nvidia chips nowadays. The Nvidia stocks have been booming as there has been a 200% revenue growth in its previous quarter (This is third in a row for them). For the Tesla investors, this decision of Musk has been particularly frustrating, for the sales have not been meeting expectation owing to the tough competition and a damaged reputation. Some of Elon Musk’s comments in recent times have negatively impacted the company’s image. No, I didn’t say that. Americans did, as per the survey.  

So now you know why the investors are not so happy. Would you be happy if you were one? I wouldn’t be. Though, Musk is yet to comment on this, it would be interesting to see on how he reacts to this.

Of course, as expected, Tesla stocks dropped by 1.91% today after the news.