Tesla Moves to Create Its Own Chip, but Is It All Much Ado about Nothing?

2Q 2019 | IN-5488
On April 22—Tesla Autonomy Investor Day—Tesla made a series of announcements regarding its plans for vehicle autonomy and smart mobility. This included plans for full-self driving features on upcoming electric-vehicles, a fleet of robotaxis and the announcement for a new chip, labelled the Tesla Full Self-Driving (FSD) chip. The Tesla announcement to design its own chip for vehicle autonomy (and manufactured by Samsung) was an interesting move from an Original Equipment Manufacturer (OEM) that currently uses a modified Nvidia Drive PX for vehicle autonomy. Given the leading approach taken by Tesla toward novel technologies such as electric vehicles, software in-vehicle, over-the-air, and other features, could Tesla’s move toward a custom chip spark an industrywide change?

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