Musk "AI is dangerous"...Tesla (TSLA) & Nvidia (NVDA) 'stumble' simultaneously

▲ Tesla (TSLA), Nvidia (NVDA), Artificial Intelligence (AI)/AI generated image

Tesla (TSLA) wavered after Elon Musk's remarks expressing concern about AI control.

According to Barron's on September 14 (local time), Tesla CEO Elon Musk publicly agreed with Anthropic CEO Dario Amodei's assertion that the pace of AI development should be controlled. Musk shared Amodei's post, stating, "Dario is right." Tesla's stock price fell 1.3% in early trading on Monday.

Amodei recently argued in a lengthy article that the pace of AI development should be slowed down. He cited cyberattacks, bioterrorism, and economic shocks as major risks. Earlier, a former Anthropic employee also warned that AI could threaten human existence. The debate over AI safety appears to be spreading again within the tech industry.

Related stocks also came under pressure across the board. SpaceX fell 2%, and Nvidia (NVDA) dropped 3.9%. Nasdaq Composite Index futures also declined by 1.8%. In contrast, Alphabet (GOOGL) rose about 2% in early trading. SpaceX and Alphabet operate AI data center businesses, and Nvidia's graphics processing units are extensively deployed in these infrastructures.

An analysis also emerged that the influence of Tesla's AI business on its stock price has become much greater than that of its electric vehicle business. Morgan Stanley analyst Andrew Percoco valued Tesla's autonomous driving and robotics businesses at approximately $320 per share. The automotive business value was estimated at approximately $45 per share. Barron's pointed to this valuation structure as the reason for the stock price decline, even with the unveiling of the new Tesla Roadster on October 1 approaching.

Melius Research analyst Ben Reitzes identified the possibility of a slowdown in AI semiconductor and hardware investment trends as a key market concern. However, he cautioned against overreactions. He analyzed that regulation and political backlash were expected risks, and that increased cybersecurity investment and the expansion of open-source AI models could boost overall computing demand. Barron's reported that the volatility of Tesla and other related stocks could also increase as the debate over AI regulation continues.

[Key Article Summary]

-Tesla's stock fell 1.3% in early trading after Elon Musk agreed with the assertion that the pace of AI development should be controlled.

-Morgan Stanley valued Tesla's autonomous driving and robotics businesses at approximately $320 per share, and its automotive business at approximately $45 per share.

-Barron's analyzed that the debate over AI regulation could increase the volatility of Tesla and related tech stocks.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*