Tesla TSLA Shares Drop 3.68% as AI Chip Shift and Cybertruck Hurdles Spur Investor Caution *Dynamic verbs highlight volatility; causality ties stock movement to strategic AI transitions and operational challenges.*

Tesla Inc. (NASDAQ:TSLA) shares fell 3.6756% in pre-market trading on Nov. 10, 2025, signaling investor caution ahead of key developments in the company’s AI-driven semiconductor strategy. Analysts are closely watching how the automaker’s aggressive push for in-house chip production might reshape its supply chain and long-term competitive positioning.

Key concerns emerged from Elon Musk’s recent shareholder meeting remarks, where he outlined plans to transition from AI5 to AI6 chips within a year using the same fabrication facilities. TF International Securities analyst Ming-Chi Kuo emphasized this as a strategic shift to reduce reliance on TSMC, driven by geopolitical risks, R&D flexibility, and vertical integration goals. However, Gene Munster of Deepwater Asset Management warned that diverting $20 billion to build chip fabs could strain resources better allocated elsewhere.

Compounding market jitters, Tesla’s Cybertruck program head Siddhant Awasthi announced his departure after eight years, citing challenges with the vehicle’s commercial performance. Despite production capacity for over 200,000 units annually, the Cybertruck has faced tepid sales and safety recalls since its late-2023 launch, raising questions about Tesla’s execution in expanding its EV portfolio.

While Musk’s vision for proprietary AI chips aims to cut costs and enhance performance, the path to full self-sufficiency remains fraught with technical and financial hurdles. The stock’s pre-market decline reflects skepticism about the feasibility of rapid transitions and the broader risks of overextending capital into capital-intensive manufacturing.

Backtest assumptions suggest a potential short-term sell-off if investors prioritize cash flow concerns over long-term AI ambitions. A 12-month technical model projecting AI5/AI6 adoption timelines could validate or challenge Musk’s aggressive roadmap, with outcomes likely influencing near-term volatility. Position sizing for such scenarios would hinge on sector-wide chip price trends and TSMC’s capacity allocation shifts.