Tesla surges after Elon Musk says the first 'full self-driving features' are coming in August (TSLA)

Tesla's version 9 software should arrive in August, CEO Elon Musk said over the weekend.
The first update since 2016 "will begin to enable full self-driving feature," he tweeted.
Musk also gave updates on the Roadster's "SpaceX" package, which will include compressed air "thrusters"
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Tesla surged more than 5% in trading Monday following CEO Elon Musk's announcement that the carmaker's version 9 software would include the first steps to fully-autonomous driving.

"With V9, we will begin to enable full self-driving features," the chief executive said in a Tweet early Sunday, telling users that a lane-merge issue had been fixed and will roll out with other updates in August.

It's not clear what exactly full self-driving will look like in Tesla vehicles. The feature will be available on Tesla cars running Autopilot 2.0, Electrek noted, which tacks on another $3,000 to the already $5,000 Autopilot 2.0 software.

Tesla's ability to update its software through internet updates — as it did after failing Consumer Reports' brake test last month — is key in its bid to disrupt traditional automakers.

"Imminent competition from traditional OEMs is often cited as a key threat to Tesla, but this underestimates the full extent of Tesla’s technology advantage, which manifests in the entire electronic architecture design," Berenberg analyst Alexander Haissl told clients in a note last week. With a price target of $500, he is one of Wall Street's biggest bulls on the stock.

"This is a decisive barrier for legacy carmakers. Tesla’s centralized, integrated, technology-driven architecture enables flexibility and OTA (over-the-air) software-upgradeability across the entire domain," he said.

Tesla's Roadster gets rocket boosters

The crossover between Musk's two companies also appears to be accelerating.

Musk gave more details about the forthcoming SpaceX version of Tesla's Roadster in a separate tweet Sunday.

"Trade is just that Roadster becomes a 2 seater instead of a 2+2. COPV [composite overwrapped pressure vessel] in place of the kid seats, which is prob wise for many reasons," Musk detailed in the first talk of the vehicle since Tesla's annual meeting last week.

There aren't any technical specs for what the compressed air thrusters might add to the Roadster, but the standard version of the vehicle, which is expected to be delivered in 2020, already boasts a speedy 0-60 time of 1.9 seconds and a 620-mile range.

Separately, a labor-dispute hearing is scheduled Monday in California, stemming from allegations the automaker broke Federal laws relating to its employees' right to unionize.

Monday's gain brings Tesla above Wall Street's average target price of $317 a share for the first time in months. Major banks have swayed from their once-bullish tone in recent months as concerns about Tesla's ability to turn a profit and live without a cash infusion weigh on investors' minds.

Shares of Tesla are now up almost 10% in the past week and 5% this year.