Tesla's (TSLA) stock price decreased slightly on Tuesday after CEO Elon Musk confirmed a CNBC report that he redirected Nvidia (NVDA) high-powered AI chips from Tesla to his social media company, X, formerly known as Twitter. Musk defended his decision on X, stating that Tesla had no use for the Nvidia chips and that they would have just sat in a warehouse. This strategic move could potentially bolster X's capabilities, a prospect that could be viewed positively by investors.

However, CNBC obtained internal Nvidia emails from December 2023, which suggested that Musk prioritized X receiving the chips over Tesla, redirecting shipments originally intended for Tesla's Texas factory.

This news comes just before Tesla's annual shareholder meeting next week, where a critical vote regarding Musk's compensation package is scheduled. Musk has previously expressed a desire for more voting power at Tesla, potentially explaining the chip diversion. Furthermore, Tesla has displayed a recent shift towards a heightened focus on autonomous driving technology, a move that could potentially align with X's needs, providing reassurance to stakeholders.

Although some investors may be worried about the chip diversion, the movement in Tesla's stock price was minimal, indicating that the market has not reacted strongly to this news. However, the company continues to face challenges, with its stock price down nearly 30% year-to-date. Nevertheless, there have been positive developments, such as the potential for Tesla to soon offer its Full Self-Driving (FSD) technology in China.

The impact of the chip diversion and Tesla's foray into autonomous driving on the company's future remains to be seen. Investors will be closely monitoring Tesla's upcoming earnings report in mid-July for further insights.