On Tuesday, in a series of posts on X, Musk stated that Tesla lacked any place to put Nvidia chips where they could be turned on. Earlier, CNBC reported that the tech magnate redirected 12,000 of the chipmaker’s H100 graphics processing units originally meant for Tesla to X instead, citing an Nvidia memo from December.

Elon Musk confirmed he diverted AI chips away from Tesla Inc. to his xAI Corp.and X Corp., providing explanations both for the redirected shipment and internal Nvidia Corp. emails casting doubt on theprocurement plans of the carmaker.In an email CNBC viewed from late April, Nvidia staff said Elon Musk made statements that conflicted with the company’s bookings with the chipmaker. Said statements were made on X and during the automaker’s first-quarter earnings call.

The Tesla CEO said during the April 23 earnings call that about 35,000 of the company’s H100s were active, and he anticipated the EV maker to have around 85,000 working by year-end. On April 28, he posted on X that Tesla will spend around $10 billion this year on AI.

Musk suggested in one of his posts of Tuesday that Nvidiawould be unable to track all the spendings of Teslaon AI this year, writing that about 50% of its expenditures will be internal. As part of broader efforts to develop self-driving technology, the company is working on its own supercomputer. Tesla also procures sensors for all of its cars, irrespective of whether consumers pay additional for its more advanced driver-assistance system.“My current best guess for Nvidia purchases by Tesla are $3B to $4B this year,” Musk posted.

Following CNBC’s report, Tesla shares wiped out gains in early trading and dropped as much as 1.3% after the open. The stock has plunged about 30% this year.Musk’s plans for developing AI within Tesla have come under greater examination since he issued threat in January to shift that work elsewhere if he’s not awarded around 25% voting control of the EV maker. Weeks after making that threat, a Delaware court rejected the compensation package that would have granted him tens of billions of dollars worth of stock options and enhanced his stake in the carmaker. Tesla shareholders will vote on the pay deal once again at its June 13 annual meeting.

Musk ordered EV maker’s biggest-ever layoffs earlier this year and is staking its future on self-driving autonomous vehicle development. While the idea of introducing an autonomous taxi service has been kicking around the company for no less than eight years, Tesla is yet to set up much of the infrastructure it would need, nor has it received regulatory approval to test robotaxis on public roads.