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Tesla shuts down Dojo, the AI training supercomputer that Musk said would be key to full self-driving

1. Tesla disbands Dojo team, shifting focus away from in-house chip development. 2. Former Dojo lead joins startup DensityAI, attracting 20 Tesla employees. 3. Musk promotes Tesla as an AI company despite robotaxi challenges. 4. Shift to external partnerships like Nvidia and Samsung for chip production. 5. Morgan Stanley predicted $500 billion value increase from Dojo's potential.

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FAQ

Why Bearish?

Ending the Dojo project signifies a major shift in Tesla's AI strategy, potentially undermining investor confidence. Historical shifts like this have led to negative market reactions, as seen during product delays and restructuring.

How important is it?

Significant restructuring and strategy changes can greatly influence TSLA’s future earnings and market perception. Thus, the news carries considerable weight among Tesla investors.

Why Short Term?

Immediate investor sentiment may decline, impacting stock price reactions in the near term. Long-term impacts contingent on success with new projects.

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