Nvidia presented a significant upgrade to its DRIVE platform at the Consumer Electronics Show last week. The new Alpamayo family of open-source AI models includes a physical data set with over 300,000 real video clips from 2,500 cities worldwide and the AlpaSim simulation system. This enhancement could enable nearly any car manufacturer to develop vehicles with Level 4 autonomy.
Tesla's stock reached an all-time high in 2025 despite an 8.5% decline in electric vehicle sales to 1.63 million cars. Investors are betting on future products like the Cybercab robotaxi. Ark Investment Management predicts the Cybercab could generate $756 billion in annual revenue by 2029 through autonomous ride-hailing services.
However, the Cybercab is not expected to enter mass production until the end of 2026. Tesla's full self-driving software, which will power the robotaxi, is not yet approved for unsupervised use in the United States. CEO Elon Musk is focusing on bringing the Cybercab to market rather than reviving passenger EV sales.
Nvidia's DRIVE Hyperion platform is designed for Level 4 autonomy and includes two AGX Thor in-vehicle computers based on the Blackwell chip architecture. It features a sensor suite with 14 cameras, 12 ultrasonics, nine radars, and one LIDAR system. The platform's software stack includes DriveOS and the new AI models.
Car manufacturers such as Toyota, Mercedes-Benz, Jaguar, Land Rover, Volvo, and Hyundai are already using Nvidia's DRIVE platform. The company's automotive segment is part of its business, though around 90% of revenue comes from data center GPUs for AI development.
Waymo, owned by Alphabet, is already completing over 450,000 paid autonomous ride-hailing trips weekly across five U.S. cities. Tesla's Cybercab will face competition from both established players and manufacturers using Nvidia's technology.
Tesla stock is trading at a price-to-earnings ratio of 297, making it more expensive than other trillion-dollar companies. It is six times more expensive than Nvidia. Any delays or issues in the Cybercab's commercialization could lead to a significant stock correction.