Wedbush analyst Dan Ives maintained his optimistic outlook on Tesla (NASDAQ:TSLA) following the company’s recently-held AI Day recruitment event. In a note, Ives mentioned the potential of innovations such as Project Dojo, as well as the company’s focus on Full Self-Driving. He did, however, share some caution about Elon Musk’s “sci-fi” projects such as the Tesla Bot. Despite his reservations, however, Ives still maintained his “Outperform” rating for the company, as well as a $1,000 12-month price target.
Tesla’s AI Day was a recruitment event, and in this light, it was undoubtedly successful. With extremely detailed and technical discussions surrounding how FSD is being developed and trained, the event was a great showcase of the projects that the company is currently working on. It would not be surprising if Tesla received a good number of applications for its AI Team following the event.
Ives, for his part, was particularly impressed by Dojo, which is being created to process vast amounts of camera imaging data much faster than existing computer systems. With the newly-unveiled D1 chip, Tesla could vastly improve its AI performance, allowing the company to gain more control over its hardware and software operations down the road.
“The holy grail for Tesla is all about FSD and differentiating the company’s technology vs. increasing competition in the autonomous and self-driving space. In theory, the AI capabilities that Tesla is working on will enhance and improve its FSD with hopes that Dojo will be operational next year. To this point, with Tesla under major scrutiny for safety issues on FSD and a new US probe now underway, clearly Tesla recognizes there are deficiencies in its current process that must be significantly improved through real-time AI to reach the eventual aspirational goal of true FSD over the coming years,” Ives wrote.
The Wedbush analyst also shared some of his reservations about the Tesla Bot, which Ives describes as a “sci-fi project for Musk.” While the Tesla Bot has potential in the way that it could help perform repetitive and low-level tasks, Ives stated that such a project would likely agitate investors in the near term since the company is currently facing some challenges.
“The robots will use the same chips and sensors that Tesla’s cars use for self-driving features. Unfortunately, as we have seen with robotaxis and other future sci-fi projects for Musk, we view this Tesla Bot as an absolute head-scratcher that will further agitate investors at a time (when) the Street is showing growing concern around rising EV competition and safety issues for Tesla. While we appreciate Musk’s longer term technology vision, a Tesla Bot is not what investors want to see with instead much more focus on chips, FSD, and reaccelerating China EV demand in this key market at a critical juncture.
“In a nutshell, last night showcased the massive AI technology underway at Tesla and speaks to a company which is much more than a traditional auto company. That said, the Street wants Musk to focus on driving near-term battery technology enhancements, capacity buildout (in Berlin and Austin), and fending off rising EV competition from all angles globally and not humanoid robots. We continue to believe Tesla is further building out its technology stronghold on EVs, however focusing on course-correcting the current issues (China demand, safety issues, and chip shortages) is the key task at hand for Musk and the stock,” Ives wrote.
Disclaimer: I am long TSLA.
Don’t hesitate to contact us with news tips. Just send a message to tips@teslarati.com to give us a heads up.
Elon Musk
Tesla looks to expand Robotaxi geofence once again with testing in new area
It looks as if Tesla is preparing for its next expansion of the geofence, potentially moving toward a much larger service area that could eclipse 150 square miles.
Tesla looks to be preparing for the potential expansion of the Robotaxi geofence once again, as the company was spotted testing the suite in an area well outside of the Austin service area.
After it first launched the Robotaxi platform on June 22, Tesla has managed to expand its geofence twice, essentially doubling the travel area both times.
The most recent expansion took the size of the geofence from 42 square miles to about 80 square miles, bringing new neighborhoods and regions of the city into the realm of where the driverless vehicles could take passengers.
However, it looks as if Tesla is preparing for its next expansion of the geofence, potentially moving toward a much larger service area that could eclipse 150 square miles.
Over the weekend, one fan noticed a Robotaxi validation vehicle testing in Bee Cave, Texas, which is roughly 25 minutes from the edge of the current geofence:
Tesla spotted doing Robotaxi validation testing in Bee Cave, Texas, about 15 miles west of Austin (20-25 minute drive from current edge of geofence). pic.twitter.com/JCOcoys8SJ
— Sawyer Merritt (@SawyerMerritt) August 23, 2025
Tesla has been testing vehicles in the western suburbs of Austin for some time, and it seems the company is laying some groundwork to push its geofence expansion into Plaid Mode as competition with Waymo continues to be at the forefront of the conversation.
Waymo has been expanding with Tesla for some time, as the pace of expansion for the two companies has been relatively accelerated for the past couple of months.
Tesla’s expansions of the geofence sent a clear message to competitors and doubters, but it is still aiming to keep things safe and not push the envelope too quickly.
The geofence expansion is impressive, but Tesla is also focusing on expanding its vehicle fleet in both Austin and the Bay Area, where it launched a ride-hailing service in July.
Tesla Bay Area autonomous fleet to grow to over 100 units: Elon Musk
Still, safety is the priority at the current time.
“We are being very cautious. We do not want to take any chances, so we are going to go cautiously. But the service areas and the number of vehicles in operation will increase at a hyper-exponential rate,” CEO Elon Musk said during the Q2 Earnings Call.
News
Tesla considers making a big move with Model Y pricing as demand is skyrocketing
“Trending toward a need to expedite output even further, which could mean adjusting pricing upward in the coming days. Trying hard not to, will see.”
Tesla is considering making a big move with Model Y pricing as demand is skyrocketing due to the EV tax credit expiring in just over a month.
With the $7,500 EV tax credit set to be removed on September 30, Tesla is experiencing increased demand for its Model 3 and Model Y. Customers are doing whatever they can to take delivery of the car they ordered as soon as possible.
The IRS recently adjusted the EV tax credit’s rules slightly.
Previously, the vehicle had to be delivered by September 30, but a slight tweak the agency made last week will now allow customers to enter a legally binding contract along with a marginal down payment by that date. The delivery can occur after September 30, and the car can still qualify for the credit.
However, demand is getting so crazy for the Model Y that Tesla is considering a price increase on the all-electric crossover, as well as a potential boost in production output to keep up with orders.
Inventory is dwindling in several markets across the United States, a good sign for the company, as it could have one of its best quarters in recent history in terms of deliveries.
However, Tesla is thinking of bumping the price slightly, Raj Jegannathan, the company’s VP of IT, AI Infrastructure, Apps, Infosec, and Vehicle Service Operations, said on X:
Trending toward a need to expedite output even further, which could mean adjusting pricing upward in the coming days. Trying hard not to, will see.
— Raj Jegannathan (@r_jegaa) August 25, 2025
The price adjustment would come as a response to increasing production output, Jegannathan’s response seems to indicate.
The bump would help Tesla’s margins, but the idea that the company could adjust pricing by increasing it would not be popular with potential car buyers. It might encourage some buyers to put their orders in sooner, hoping to avoid a new, higher price.
However, it could also steer some buyers away from putting an order in on a vehicle, especially if the price increase is more than a few hundred dollars.
Tesla boosted the price of the Model S, Model X, and Cybertruck recently, but brought in a “Luxe Package” to help justify it.
It comes with Free Full Self-Driving, Free lifetime Supercharging, four years of premium service, and lifetime Premium Connectivity.
Tesla has produced its 100,000th new Model Y at Gigafactory Berlin. The milestone was announced by the electric vehicle maker through its official Tesla Manufacturing account on social media platform X.
New Tesla Model Y milestone
The milestone was announced by Tesla on X, when the company wrote “Today, we built the 100,000th New Model Y at Giga Berlin!” The announcement was accompanied by an image of a new Model Y coming off the line.
The milestone was received warmly by members of the Tesla community, many of whom expressed excitement at the further progress of the new Model Y program at Giga Berlin. The facility, after all, only produces Model Y units, which would make it the perfect site to produce new variants like the Model Y Performance and possibly even the Model Y L, which was recently launched in China.
New Model Y ramp
As noted in a previous report from electrive, the initial production of the new Model Y started in Giga Berlin around mid-January 2025. Since the new Model Y involved a changeover from the legacy Y to the new variant, the ramp of the new Model Y’s production at the Germany-based facility was likely a gradual process over the past months.
It would then be no surprise if the next 100,000 new Model Y units would be produced in Giga Berlin in a shorter period. Giga Berlin could become an even bigger factor in Tesla’s global sales, after all, especially if it becomes the site that produces the Model Y Performance and the Model Y L for Europe and other territories. Giga Berlin, if any, seems to be quite busy recently, with aerial videos of the facility showing a fleet of mysteriously covered Model Y units being stored within the complex.
Tesla looks to expand Robotaxi geofence once again with testing in new area
Tesla considers making a big move with Model Y pricing as demand is skyrocketing
Tesla produces 100,000th new Model Y in Giga Berlin
-
Elon Musk3 days agoElon Musk takes aim at Bill Gates’ Microsoft with new AI venture “Macrohard”
-
Elon Musk7 hours agoElon Musk argues lidar and radar make self driving cars more dangerous
-
News2 weeks agoElon Musk reaffirms Tesla Semi mass production in 2026
-
News1 week agoTesla clarifies LA car carrier fire started in diesel semi, not EV batteries
-
News2 weeks agoTesla FSD V14 gets tentative release date
-
News2 weeks agoTesla plans to use Unreal Engine for driver visualization with crazy upgrade
-
Elon Musk2 weeks agoTesla warns consumers of huge, time-sensitive change coming soon
-
News2 weeks agoTesla flexes its most impressive and longest Full Self-Driving demo yet