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Musk’s AI Ambitions Level Up — Grok Is Coming to Tesla, Shares Rally in Response

TradingKeyJul 11, 2025 9:03 AM

TradingKey - Shortly after xAI released its next-generation large language model, Grok 4, Elon Musk personally confirmed that the AI system will soon be integrated into Tesla vehicles, stating it would be “on board by next week at the latest.” The announcement sent Tesla (TSLA.US) shares surging more than 4.7% on Thursday.

Tesla Inc

Tesla has recently faced challenges including slowing sales and intensifying competition, with its stock down nearly 38% from its December 2024 peak.

Investors had previously called for stronger synergy between xAI and Tesla to revive the company’s growth narrative. Musk’s latest comments are seen as a key signal addressing market concerns.

At the same time, Tesla is advancing its Robotaxi rollout plan, having initiated certification processes in California and Arizona. Service in the Bay Area is expected to launch within the next one to two months.

Currently, Musk is leveraging deep technology integration to regain competitive ground. However, political uncertainties — such as deteriorating relations with Donald Trump — remain potential headwinds. Investors should closely monitor Tesla’s progress in AI and autonomous driving as critical indicators of whether the company can return to an upward trajectory.

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