

Elon Musk
Tesla’s road to gains comes with short-term pain: Bank of America
Bank of America analyst John Murphy acknowledged that Tesla is on the road to gains but has to face some short-term pain on the way.
Murphy cited multiple challenges ahead for Tesla, including the company’s transition to producing its new Model Y vehicle. During the last earnings call, Tesla’s Chief Financial Officer Vaibhav Taneja announced that Tesla will start producing the new Model Y in all its factories simultaneously next month.
“While we feel confident in our team’s abilities to ramp production quickly, note that it is an unprecedented change, and we are not aware of anybody else taking the best-selling car on the planet and updating all factories at the same time. This changeover will result in several weeks of lost production in the quarter. As a result, margins will be impacted due to idle capacity and other ramp-related costs, as is common in any launch, but will be overcome as production is ramped,” noted Taneja.
Murphy predicts that the shift to Model Y Juniper in all of Tesla’s factories will result in a production loss of 100,000 vehicles. He believes Tesla will continue feeling pressure as it prioritizes volume growth. The analyst also observed that Tesla has a less defined outlook for 2025. He observed that Tesla seemed to be stepping back from Elon Musk’s Q3 2024 prediction that it would see 20-30% volume growth by this year.
Besides a shift in Model Y production, the Bank of America analyst forecasts that declining average selling prices, attractive leasing terms, and various incentives could put sustained pressure on Tesla’s gross margins.
Considering his forecast, Murphy lowered his 2025e EPS prediction for Tesla from $3.15 to $3.05. He remains cautious, with a Neutral rating and a $490 price target for Tesla shares.


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Elon Musk
Tesla’s Robotaxi expansion wasn’t a joke, it was a warning to competitors
Tesla might have made a joke with its first Robotaxi service area expansion, but it was truly a serious warning to its competitors.

Tesla’s Robotaxi expansion occurred for the first time on Monday, and while the shape of its new service area might be “cocky,” it surely is not a joke. It’s a warning to competitors.
Robotaxi skeptics and Tesla opponents are sitting around throwing hate toward the company’s expansion appearance. Some called it “unserious,” and others say it’s “immature.” The reality is that it has a real meaning that goes much further than the company’s lighthearted and comical attitude toward things.
Proudly unserious
— Tesla (@Tesla) July 14, 2025
For context, Tesla has routinely used the number 69 as a way to price things it sells. 420 is another, an ode to cannabis culture. A few years back, it actually priced its Model S flagship sedan at $69,420. The first rides of the Robotaxi fleet were priced at $4.20. They are now being increased to $6.90.
Some call it childish. Others call it fun. The truth is, nobody is doing it this way.
Tesla updates Robotaxi app with several big changes, including wider service area
But today’s expansion of the Robotaxi service area in Austin is different. Tesla did not expand its shape to different neighborhoods or areas of the City of Austin. It did not expand it by broadening the rectangle that was initially available. Instead, it chose a different strategy, simply because it could:
🚨 Tesla’s new Robotaxi geofence is…
Finish the sentence 🥸 pic.twitter.com/3bjhMqsRm5
— TESLARATI (@Teslarati) July 14, 2025
Tesla could have done anything. It could have expanded in any direction, in any way, but it chose this simply because it has gotten Robotaxi to the point that it can broaden its service area in any direction. It chose this shape because it could.
Other companies might not have the same ability. Of course, many companies probably would not do this even if it could, simply because of the optics. Tesla doesn’t have those concerns; it has been open about its ability to be funny, and yes, immature, at times.
But in reality, it was a stark warning to competitors. “We can go anywhere in Austin, at any time, and we’re confident enough to make a joke about it.”
Tesla’s Robotaxi geofence in Austin grows, and its shape is hard to ignore
As Tesla is already aiming to expand to new states and high-population areas, and with applications filed in Arizona and California, Robotaxi will be in new regions in the coming weeks or months.
For now, it remains in Austin, and Tesla is sending a message to other companies that it is ready to go in any direction. The driverless Robotaxi fleet, bolstered by billions of miles of data, is ready to roam without anyone at the wheel.
Elon Musk
Tesla updates Robotaxi app with several big changes, including wider service area
Tesla’s Robotaxi app has gotten another update, and this time it offers a wider service area, but there are a lot of other changes, too.

Tesla is rolling out its second update to its Robotaxi app after it launched the driverless ride-hailing service less than a month ago in Austin.
Among the changes, Tesla has expanded its service area, added walking directions to both the pickup and dropoff areas, added closing times for dropoff destinations, and allowed editing of your destination after booking a ride.
The new app version, Robotaxi 25.7.5, was rolled out on Monday morning. The biggest change is the near doubling of the service area, as Tesla expanded the possible travel region by a significant margin:
Tesla’s Robotaxi geofence in Austin grows, and its shape is hard to ignore
It’s no surprise Tesla decided to push the envelope with a new, interesting shape to the geofenced area that is hard to ignore.
The new region includes notable points of interest in Austin, most notably is the University of Texas at Austin. Tesla included the school, which has over 53,000 students, in this expansion, and it could be pushing the app and service to some of them in the coming weeks.
It’s a great addition as it is a highly concentrated area of the city, full of students and visitors.
Robotaxi app changes outside of new service area
Tesla has also added a handful of new changes. With its first update of the Robotaxi app, Tesla addressed several highly requested changes, including the ability to adjust the pickup location instead of being fixed to a default spot.
Walking Directions to Pickup and Destination
In congested and large metro areas, ride-sharing pickups are sometimes confusing to navigate to. When it comes to dropoff at your destination, exiting the vehicle at the front door is not always possible (many in Austin noticed this at Terry Black’s BBQ).
Tesla Robotaxi’s biggest challenge seems to be this one thing
Now, the app will guide you on how to reach your Robotaxi and your destination when pickup and dropoff are not available at the entrances of the establishments you’re visiting.
Search Results now show closing times
If you’re going to arrive at an establishment close to its closing time, the Robotaxi app will now warn you that you could arrive with only a few minutes to spare, or you could miss it altogether.
This is a nice touch because there’s nothing worse than craving some ice cream at 10 p.m., only to arrive and see the doors are locked and the lights are off.
Many navigation apps have this integrated to eliminate any confusion about closing times.
Destination editing after booking
This feature could go hand-in-hand with the closing times. As a business might close shortly after your arrival, you might find it advantageous to visit another establishment that has more time to serve you.
You can now pivot your destination after you have entered your Roobtaxi.
Elon Musk
Elon Musk teases Tesla’s “most epic demo” by end of year
Musk posted his update on social media platform X.

Tesla CEO Elon Musk has teased what could very well be one of the electric vehicle maker’s most important events. As per the CEO, Tesla will be holding its most epic demo yet by the end of the year.
Musk posted his update on social media platform X.
Tesla’s most epic demo
Musk has been active on X this weekend, and on Sunday night, the CEO mentioned that he just left the Tesla Design Studio in Hawthorne, California. He seemed impressed with what he saw at the site, as he noted that the company will hold an impressive demonstration at the end of the year.
“Just left the Tesla design studio. Most epic demo ever by one of year. Ever, Musk wrote in his post.
Musk’s post was received with much anticipation from the electric vehicle community, many of whom speculated that the company may finally be ready to take the wraps off the production version of a long-awaited flagship product.
Possible new flagship?
When Tesla unveiled the Semi in late 2018, the company also unveiled the next-generation Roadster, which was designed to be the company’s halo vehicle. The Semi has since entered limited production and is now being used by both Tesla and select clients, but the Roadster remains under wraps. Considering that Musk mentioned the Tesla Design Studio in his recent post, some Tesla fans are speculating that the company may finally be unveiling the production version of the next-generation Roadster.
Tesla, after all, has been overtaken in the raw EV power, range, and speed game by competitors, with vehicles like the Lucid Air Sapphire and the Xiaomi SU7 Ultra beating the company’s fastest car today, the Model S Plaid, in raw numbers. Tesla could then use the Roadster to reestablish itself as the leader of the electric vehicle pack, raw numbers and tech or otherwise.
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