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Tesla's AI5 Chip Won't Hit Production Volume Until Mid-2027, Musk Confirms

MarketDash Editorial Team
22 days ago
Elon Musk revealed that Tesla's AI5 chips won't reach sufficient production volume until mid-2027, while work on the even more powerful AI6 chip is already underway. The delay highlights ongoing challenges in Tesla's chip production timelines.

Tesla Inc. (TSLA) CEO Elon Musk spent his Saturday doing what billionaires do: thinking about chips. Specifically, the company's next-generation AI5 chip, which won't be showing up in Tesla vehicles at scale until mid-2027.

The AI5 Timeline Problem

Musk took to X on Saturday to share an update that won't thrill anyone hoping for faster progress on Tesla's computing power. The AI5 chip, which represents a major leap in the intelligence capabilities of Tesla vehicles, is still years away from meaningful deployment.

"AI5 will not be available in sufficient volume to switch over Tesla production lines until mid 2027, as we need several hundred thousand completed AI5 boards line side," Musk explained in his post.

Translation: it's not just about designing a better chip. Tesla needs hundreds of thousands of these boards ready to install in cars, and that kind of volume takes time to ramp up. The delay means the electric vehicle maker's transition to this new technology will take longer than anyone initially hoped.

Already Looking Ahead to AI6

Here's where things get interesting. While AI5 is still years from volume production, work on AI6 is already underway. Musk mentioned that Dell Technologies CEO Michael Dell was present during a recent review session, having met with Musk just beforehand.

According to Musk, Tesla expects to have samples and possibly a small number of AI6 units in 2026, but don't expect mass production anytime soon. "AI6 will use the same fabs, but achieve roughly 2X performance. Aiming for a fast follow to AI5, so hopefully mid 2028 for volume production of AI6," he wrote in another post.

Why This Matters

The timing is significant considering Musk's track record of pushing chip partners to move faster. He's been vocal about pressuring Taiwan Semiconductor Manufacturing Co. and Samsung Electronics Co. to speed things up, arguing that a five-year production timeline doesn't match Tesla's innovation pace.

Back in October, Musk announced that Samsung would co-produce the AI5 chip alongside TSMC. The move was meant to diversify production sources and boost capacity while reducing supply chain risks. But this latest delay suggests that even with multiple partners, hitting ambitious chip production targets remains challenging.

Cathie Wood of ARK Invest is clearly a believer in the technology's potential. Sharing a post from business advisor Brian Roemmele on X, Wood wrote: "If @BrianRoemmele thinks #Tesla's A15 chip will be a big deal, then it will be a big deal."

For now, Tesla and its investors will need to exercise patience as the company works through the complexities of ramping up advanced chip production at the scale needed for its vehicle lineup.

Back to News

Tesla's AI5 Chip Won't Hit Production Volume Until Mid-2027, Musk Confirms

MarketDash Editorial Team
22 days ago
Elon Musk revealed that Tesla's AI5 chips won't reach sufficient production volume until mid-2027, while work on the even more powerful AI6 chip is already underway. The delay highlights ongoing challenges in Tesla's chip production timelines.

Tesla Inc. (TSLA) CEO Elon Musk spent his Saturday doing what billionaires do: thinking about chips. Specifically, the company's next-generation AI5 chip, which won't be showing up in Tesla vehicles at scale until mid-2027.

The AI5 Timeline Problem

Musk took to X on Saturday to share an update that won't thrill anyone hoping for faster progress on Tesla's computing power. The AI5 chip, which represents a major leap in the intelligence capabilities of Tesla vehicles, is still years away from meaningful deployment.

"AI5 will not be available in sufficient volume to switch over Tesla production lines until mid 2027, as we need several hundred thousand completed AI5 boards line side," Musk explained in his post.

Translation: it's not just about designing a better chip. Tesla needs hundreds of thousands of these boards ready to install in cars, and that kind of volume takes time to ramp up. The delay means the electric vehicle maker's transition to this new technology will take longer than anyone initially hoped.

Already Looking Ahead to AI6

Here's where things get interesting. While AI5 is still years from volume production, work on AI6 is already underway. Musk mentioned that Dell Technologies CEO Michael Dell was present during a recent review session, having met with Musk just beforehand.

According to Musk, Tesla expects to have samples and possibly a small number of AI6 units in 2026, but don't expect mass production anytime soon. "AI6 will use the same fabs, but achieve roughly 2X performance. Aiming for a fast follow to AI5, so hopefully mid 2028 for volume production of AI6," he wrote in another post.

Why This Matters

The timing is significant considering Musk's track record of pushing chip partners to move faster. He's been vocal about pressuring Taiwan Semiconductor Manufacturing Co. and Samsung Electronics Co. to speed things up, arguing that a five-year production timeline doesn't match Tesla's innovation pace.

Back in October, Musk announced that Samsung would co-produce the AI5 chip alongside TSMC. The move was meant to diversify production sources and boost capacity while reducing supply chain risks. But this latest delay suggests that even with multiple partners, hitting ambitious chip production targets remains challenging.

Cathie Wood of ARK Invest is clearly a believer in the technology's potential. Sharing a post from business advisor Brian Roemmele on X, Wood wrote: "If @BrianRoemmele thinks #Tesla's A15 chip will be a big deal, then it will be a big deal."

For now, Tesla and its investors will need to exercise patience as the company works through the complexities of ramping up advanced chip production at the scale needed for its vehicle lineup.