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Tesla (TSLA) could rally up to $1000 this year if China demand remains strong: report

(Credit: Tesla Greater China/Twitter)

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Wedbush analyst Dan Ives believes TSLA could soar back up to $1,000 in 2021 because demand in China remains strong. However, the global semiconductor-chip shortage could be a temporary setback for Tesla.

Ives has an “Outperform” rating for TSLA stock with a $1,000 price target. TSLA closed at $629.04 on Monday, down 6.44% compared to the last market close. The lowest TSLA stock reached this year was $563 in March, and the highest it went was $880.02 in January. 

Despite his optimistic price target for Tesla, Ives listed three headwinds the EV giant might face on its way to $1,000 per share. First, Tesla still has to contend with the global chip shortage, which has affected many automobile manufacturers and tech companies. Elon Musk openly discussed the setbacks Tesla experienced while ramping Plaid Model S and Model X production because of the global chip shortage. 

The second headwind Ives believes Tesla needs to overcome would be its perception in China. While he believes Tesla’s demand in the Asian country remains strong, Ives still cautions against political blowback in China related to safety issues.

“The mainline in the sand now for the bulls and bears is not the near-term chip shortage in our opinion (which is temporary), but rather Tesla’s ability to further penetrate China,” Ives said. “Now it’s about Musk playing nice in the sandbox, which appears to be happening over the last few weeks around safety issues and making sure that Tesla does not see any stumbles/government crackdown in China, which is poised to represent 40%+ of global deliveries by 2022.”

The last headwind that Ives believes will stand before Tesla on its rally to $1,000 would be the rising competition in the global battery electric vehicle market. Market Insider pointed out that Lucid Motors, Ford, and Volkswagen all showcased their flagship electric vehicle in separate advertisements broadcasted during Elon Musk’s appearance on Saturday Night Live.

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Ives estimated that Tesla could comfortably exceed 200,000 deliveries in the second quarter, even with the chip shortage. In the next few months, he will vigilantly watch Tesla’s Model Y production and demand, progress on the Plaid Model S and X, and the company’s higher-margin software along with Full Self-Driving purchases.

Disclosure: I am long TSLA.

The Teslarati team would appreciate hearing from you. If you have any tips, email us at tips@teslarati.com or reach out to me at maria@teslarati.com.

Maria--aka "M"-- is an experienced writer and book editor. She's written about several topics including health, tech, and politics. As a book editor, she's worked with authors who write Sci-Fi, Romance, and Dark Fantasy. M loves hearing from TESLARATI readers. If you have any tips or article ideas, contact her at maria@teslarati.com or via X, @Writer_01001101.

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Elon Musk

Grok coming to Tesla vehicles next week “at the latest:” Elon Musk

Grok’s rollout to Tesla vehicles is expected to begin next week at the latest.

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Credit: Tesla China

Elon Musk announced on Thursday that Grok, the large language model developed by his startup xAI, will soon be available in Tesla vehicles. Grok’s rollout to Tesla vehicles is expected to begin next week at the latest, further deepening the ties between the two Elon Musk-led companies.

Tesla–xAI synergy

Musk confirmed the news on X shortly after livestreaming the release of Grok 4, xAI’s latest large language model. “Grok is coming to Tesla vehicles very soon. Next week at the latest,” Musk wrote in a post on social media platform X.

During the livestream, Musk and several members of the xAI team highlighted several upgrades to Grok 4’s voice capabilities and performance metrics, positioning the LLM as competitive with top-tier models from OpenAI and Google.

The in-vehicle integration of Grok marks a new chapter in Tesla’s AI development. While Tesla has long relied on in-house systems for autonomous driving and energy optimization, Grok’s integration would introduce conversational AI directly into its vehicles’ user experience. This integration could potentially improve customer interaction inside Tesla vehicles.

xAI and Tesla’s collaborative footprint

Grok’s upcoming rollout to Tesla vehicles adds to a growing business relationship between Tesla and xAI. Earlier this year, Tesla disclosed that it generated $198.3 million in revenue from commercial, consulting, and support agreements with xAI, as noted in a report from Bloomberg News. A large portion of that amount, however, came from the sale of Megapack energy storage systems to the artificial intelligence startup.

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In July 2023, Musk polled X users about whether Tesla should invest $5 billion in xAI. While no formal investment has been made so far, 68% of poll participants voted yes, and Musk has since stated that the idea would be discussed with Tesla’s board.

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Tesla Robotaxi to expand Austin coverage, Bay Area launch targeted in coming months

Tesla is looking at the San Francisco Bay Area as the next location for its Robotaxi service.

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Credit: @AdanGuajardo/X

Tesla is preparing to expand its Robotaxi pilot program in Austin, Texas, with the self-driving service set to cover a larger portion of the city this weekend. The CEO shared the update in a post on social media platform X, where he also noted that the company is currently looking at the San Francisco Bay Area as the location for Tesla’s next Robotaxi pilot.

Tesla’s growing Robotaxi pilot

Tesla’s Robotaxi service first launched in Austin last month as a test program. While the vehicles operate without a human in the driver’s seat, a Tesla employee currently rides in the front passenger seat to monitor vehicle performance. Responses to Tesla’s Robotaxi pilot are quite positive, with some users praising the vehicles for their smooth and comfortable rides.

In a later post on X, Musk also stated that Tesla is in the process of seeking regulatory approval to begin operating robotaxis in the Bay Area, adding that a launch there could happen within “a month or two.” The California expansion would be a notable milestone for Tesla, considering its roots in the state.

Robotaxi is key to Tesla’s long-term growth

Autonomous driving remains central to Tesla’s long-term vision. Musk has consistently framed Robotaxis as a future driver of profitability and growth, particularly as EV sales face headwinds across multiple regions. In a way, the expansion of Tesla’s autonomous fleet is expected to play a critical role in differentiating the company’s offerings in a crowded electric vehicle market.

Tesla has yet to specify when the Robotaxi service will transition out of its testing phase or how it plans to monetize the platform, as the company is only charging a flat fee of $4.20 per ride in its Austin pilot program today. However, its growing geographic footprint suggests the company is steadily progressing toward wider deployment.

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xAI launches Grok 4 with new $300/month SuperGrok Heavy subscription

xAI also introduced SuperGrok Heavy, which is priced at $300 per month.

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Credit: xAI/X

xAI, the artificial intelligence company founded by Elon Musk, has officially launched its latest flagship models, Grok 4 and Grok 4 Heavy. Alongside the release, the company introduced its most premium subscription tier to date, SuperGrok Heavy, which is priced at $300 per month and targeted at power users and developers.

Grok 4 is designed to compete with top-tier AI models like OpenAI’s ChatGPT and Google’s Gemini. As per xAI, Grok 4 demonstrates frontier-level performance across several benchmark evaluations. 

On Humanity’s Last Exam, an extensive test designed to evaluate general knowledge, Grok 4 scored 25.4% without using external tools, outperforming OpenAI’s o3 (high), which scored 21%, and Gemini 2.5 Pro, which scored 21.6%. 

When equipped with tools, Grok 4 Heavy scored 44.4%, making it the top-performing model in that category. For context, Gemini 2.5 Pro with tools scored 26.9%, as noted in a TechCrunch report.

xAI also highlighted Grok 4 Heavy’s “multi-agent” system, which enables multiple instances of the model to solve a problem in parallel and compare answers, similar to a study group. This collaborative approach is intended to improve both reasoning and accuracy in complex tasks.

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The company also shared results from the ARC-AGI-2 benchmark, where Grok (Thinking) achieved new state of the art (SOTA) score on the test with 15.9%. As per Arc Prize in a post on X, this score is “nearly double(s) the previous commercial SOTA and tops the current Kaggle competition SOTA.”

The $300/month SuperGrok Heavy plan grants users early access to Grok 4 Heavy, as well as upcoming product features. Upcoming capabilities that are planned for release in the coming months include an AI coding model in August, a multi-modal agent in September, and a video generation system in October.

Grok 4 and Grok 4 Heavy are available via API as part of xAI’s push to engage developers and enterprise users. The company’s enterprise platform, which launched just two months ago, will also expand via partnerships with cloud hyperscalers to bring Grok models to broader infrastructure environments.

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