Tesla Takes Another Hit With Nvidia, GM Self-Driving Partnership

Erica Kollmann

March 18, 2025

Tesla, Inc. (NASDAQ:TSLA) took another hit on Tuesday when NVIDIA Corp. (NASDAQ:NVDA) and General Motors Co. (NYSE:GM) announced they will partner on self-driving vehicles.

What To Know: Nvidia CEO Jensen Huang announced the GM partnership, which will include robotics, in-vehicle hardware for advanced driver-assistance systems and in-cabin safety driving experiences, at the GPU Technology Conference (GTC) on Tuesday afternoon.

“The time for autonomous vehicles has arrived," Huang said.

Read Next: SoundHound AI At 2025 NVIDIA GPU Technology Conference: In-car Voice Commerce Ecosystem ‘A Game-Changer For #AutomotiveTech’

Tesla said it will begin its first robotaxi service in Austin starting in June 2025 using Tesla-owned vehicles equipped with an unsupervised version of the company’s Full Self-Driving (FSD) software.

The Nvidia/GM partnership brings more competition for Tesla in the robotaxi space which already includes Alphabet Inc.â€˜s (NASDAQ:GOOG) (NASDAQ:GOOGL) Waymo and Amazon.com Inc.'s (NASDAQ:AMZN) Zoox.

Tesla shares have fallen nearly 50% year-to-date as the company faces declining sales, increased competition and political controversy.

Deepwater Asset Management managing partner Gene Munster told Benzinga that he remains bullish on Tesla.

"I’m still positive for the long term. Believe they’re the best positioned company for physical AI. Jensen talked about Physical AI today at the NVDA keynote," Munster said.

Huang reviewed the development of AI as a timeline and discussed how the focus shifted from generative AI to agentic AI and now to physical AI, or robotics.

“Artificial intelligence has made extraordinary progress,” Huang said and explained the next phase is physical AI.

“A new era of AI we call physical AI," he said.

Read Next:

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Photo: Shutterstock

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