Tesla stock dips 1.7% as Musk signals continued large-scale Nvidia chip buying

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Dmytro Kharkov

19.03.2026

Tesla stock dips 1.7% as Musk signals continued large-scale Nvidia chip buying — Elon Musk confirmed continued large-scale Nvidia chip purchases

The state of unstable equilibrium is observed in the tech segment. As of March 19, Tesla stock is trading at $392.50, down 1.7% over the past 24 hours. Bears slightly dominate after the price fell below the $400 level.

Highlights

Tesla is trading below key technical levels as bulls struggle to reclaim the $400 resistance zone.
Elon Musk’s confirmation of large-scale Nvidia chip purchases and in-house AI5 development supports Tesla’s long-term AI strategy but do not affect short-term price dynamics.
In the near term, the stock may remain in the consolidation range as technical pressure has a higher impact than AI-driven fundamentals.

From a technical standpoint, Tesla is now trading below its 20-day moving average, which sits around $398–400. It confirms weakening short-term momentum. The 50-day moving average near $410 remains a key resistance barrier that prevents any near-term bullish attempts. Volume trends reinforce the bearish bias, and heavier turnover on down days promotes institutional distribution.

Immediate support is located at $390, and it has already been tested several times this week. A decisive break below this zone may lead to further decline toward $380. On the upside, resistance is defined at $400–405, and there is a stronger ceiling at $420 where prior rallies ended. RSI and other momentum indicators are trending lower but not yet oversold. Overall, the technical situation reflects consolidation with bearish risks unless $400 is reclaimed.

Tesla stock performance (January 2026 – March 2026). Source: TradingView.

In addition, the trend structure suggests Tesla is entering a distribution phase, and the continuation of its previous rally is unlikely. The failure to sustain moves above $400 indicates unstable buying interest at higher levels. Short-term price action is affected by sellers on rebounds, which may lead to either a deeper pullback or an extended sideways range. In general, the current setup supports the growing pressure with limited opportunities for reversal.

Tesla expands in-house AI chip push alongside Nvidia reliance

Tesla and SpaceX will continue large-scale purchases of Nvidia chips. However, the most important signal for investors is Tesla’s initiatives in the sphere of vertical integration. Elon Musk confirmed reliance on Nvidia hardware while emphasizing development of Tesla’s next-generation AI5 chip. This strategy suggests Tesla is not attempting to replace Nvidia in the near term. However, the management wants to reduce long-term dependency with a positive impact on its ecosystem.

Musk highlighted that the AI5 chip is designed to deliver disproportionately high performance relative to its cost and scale. The chip is being specifically tailored for Tesla’s core AI ambitions. They include the Optimus humanoid robot and robotaxi platform. This indicates a shift toward specialized hardware associated with Tesla’s real-world AI applications. So the company does not rely exclusively on generalized GPU infrastructure.

At the same time, Musk’s public endorsement of Nvidia and CEO Jensen Huang confirms the ongoing importance of Nvidia’s technology in Tesla’s near-term plans. It implies that Nvidia remains critical for current compute needs. However, Tesla is implementing projects for achieving a more self-sufficient AI stack. This limits immediate upside surprises from Nvidia-related headlines, and Tesla’s longer-term positioning in AI and robotics remains strong.

Price scenarios point to $380 downside risk

In the short term, Tesla is likely to trade within a defined range. Its downside risks slightly exceed upside potential. The base case scenario refers to consolidation between $380 and $410 over the next few weeks. Volatility may remain high due to unstable tech sentiment.

A bearish scenario will be confirmed by a daily close below $390. In that case, the stock may accelerate toward $380 or even $365 if selling pressure increases. This aligns with the current trend of lower highs and selling prevalence.

Syrah Resources and Tesla agreed to extend the deadline to resolve a dispute over their graphite supply agreement from March 16 to June 1, 2026, allowing more time to meet material qualification requirements. The conflict stems from Tesla’s claim that Syrah failed to deliver required graphite samples from its Louisiana facility, constituting a default under the contract.

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