On November 19, 2025, Elon Musk stated that Tesla’s future hinges on its next-generation AI5 microchips, which will power everything from driverless technology to robots. Musk warned that even the best-case chip supply scenarios from current suppliers are insufficient, raising the possibility that Tesla may need to build its own large-scale chip fabrication facility. This announcement underscores strategic risks and capital requirements for Tesla, as chip supply constraints could impact upcoming products like robotaxis and humanoid robots. The news comes amid recent volatility in TSLA shares, which closed at $403.79 (+0.63%) during live trading, following a sharp drop earlier in the week. The focus on chip supply and potential new manufacturing investments is likely influencing investor sentiment, with the stock’s movement also reflecting broader tech sector trends.