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Market Rollercoaster: Nvidia And Tesla Shares Drop By 6%, Losing $220 Billion

The stock values of pioneering American companies in artificial intelligence, Nvidia and Tesla, experienced a substantial drop on Wednesday, erasing hundreds of billions from their market cap and sparking a broader tech stock sell-off.

Key Insights

Both Nvidia and Tesla saw a dip of nearly 6%, contributing to a wider decline in the major S&P 500 index by over 1%, while the tech-centric Nasdaq fell by more than 2%.

The AI chip manufacturer Nvidia removed about $170 billion in value, while electric vehicle giant Tesla shed $52 billion, bringing a total loss of $222 billion, surpassing the entire market cap of General Electric.

This price fluctuation comes amid revisions to international strategy by U.S. President Donald Trump during his early second term. Investors keep a close eye as volatility reigned, with CBOE’s VIX “fear gauge” rising 8% following announcements of imminent tariffs on auto imports and blacklisting of multiple Chinese tech companies.

Global Implications

The market response also affected Tesla and Nvidia adversely, considering their revenue reliance on international markets, including significant contributions from China.

Market Impacts On Competitors

Amidst this turbulence, other automakers like General Motors and tech firms like AMD and TSMC experienced declines of at least 2% and over 4%, respectively, indicating wider industry pressures.

Uber CEO Redefines Corporate Innovation Through AI Empowerment

Uber’s Code-Driven Transformation

Uber CEO Dara Khosrowshahi says the company should be understood less as a ride-hailing platform and more as a large technology system built and maintained by engineers. Speaking on The Diary of a CEO podcast with Steven Bartlett, he described how software development remains central to Uber’s operations and long-term strategy.

Embracing AI As A Preparation Tool

Khosrowshahi explained that some internal teams use an AI tool informally referred to as “Dara AI” to simulate executive feedback during preparation meetings. The system allows teams to test presentations and refine arguments before final reviews. The approach reflects Uber’s broader focus on using AI to improve internal decision-making and workflow efficiency.

Engineering As The Architectural Backbone

According to Khosrowshahi, around 90% of Uber’s engineers are already using AI tools in their daily work, while roughly 30% are considered advanced users applying AI to redesign parts of the company’s infrastructure. The shift positions engineers not only as builders of existing systems but also as key drivers of future product and platform development.

Productivity Redefined

Khosrowshahi noted that AI adoption is significantly improving engineering productivity and accelerating development cycles. The company views these tools as a way to optimize processes rather than replace technical expertise.

Uber’s internal use of AI illustrates how large technology companies are integrating automation into core operations while reshaping how teams collaborate and ship products.

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