Tesla (TSLA) shares surged 5.05% in pre-market trading on Thursday, as investors responded positively to a series of announcements from CEO Elon Musk and the company. The electric vehicle maker's stock movement was driven by three key developments: the imminent integration of Grok AI into Tesla vehicles, plans to expand its robotaxi service, and the setting of a date for its annual shareholder meeting.
In a post on X (formerly Twitter) on Thursday, Musk revealed that Grok AI, developed by his artificial intelligence company xAI, will be available in Tesla vehicles "next week at the latest." This announcement comes just a day after xAI launched its latest flagship AI model, Grok 4. The integration of advanced AI technology into Tesla's vehicles is seen as a significant step forward in enhancing the company's competitive edge in the autonomous driving space.
Additionally, Musk disclosed plans to expand Tesla's robotaxi service. The company aims to increase its service area in Austin, Texas, this weekend and is eyeing expansion to the San Francisco Bay Area within the next one to two months. This move is viewed as a potential game-changer in the ride-sharing industry, with analysts suggesting it could reshape the market and potentially impact established players like Uber and Lyft in the long term.
Furthermore, Tesla addressed investor concerns by finally setting a date for its annual shareholder meeting. The company announced in a filing that the meeting will be held on November 6, 2025. This decision comes after a group of prominent shareholders urged the company to set a date due to legal obligations, alleviating worries that Tesla was close to missing a legal deadline.
These developments have collectively bolstered investor confidence in Tesla's future prospects, despite recent challenges such as declining vehicle deliveries in the first half of 2025. The stock's positive movement suggests that the market is optimistic about Tesla's continued innovation and expansion in key areas of its business.