On Monday, July 19, a Fort Lauderdale federal jury released its verdict about a 2018 Tesla Model S crash, resulting in 18-year-old Barrett Riley’s death. The jury found Tesla 1% negligent for the Model S accident and ruled that the victim and his father were 99% at fault.
The six-person jury found that Barrett was 90% to blame for the crash, while his father—James Riley—was 9% liable. Barrett’s mother—Jenny Riley—was found 0% responsible for the incident. As per Bloomberg, the jury also ruled that James and Jenny Riley sustained $10.5 million in pain and suffering damages for their son’s death.
On May 8, 2018, the 18-year-old drove his father’s Model S with his friends. Riley lost control of the vehicle while driving at 116 miles per hour. The Model S hit the concrete wall of a house in Fort Lauderdale and caught on fire. Riley and one of his passengers, Edgar, died in the incident, while a third survived the crash.
Tesla Batteries not Liable
James Riley filed a product liability suit against Tesla in a Florida federal court in 2020. In his complaint, Riley claims that the Model S vehicle’s lithium-ion batteries “burst into an uncontrollable and fatal fire” after his son crashed.
The Riley family argued that Barrett might have survived the accident if the Model S hadn’t caught on fire because of a defective Tesla battery design. On June 29, a judge dismissed the Rileys’ claim about a defect in Tesla’s lithium-ion battery cells and battery pack before the trial started.
Drivers make Cars Safe
Barrett’s family also noted that Tesla removed the speed-limiting device Jenny Riley requested for the Model S, designed to cap the vehicle’s speed at 85 mph.
However, Tesla’s lawyers argued that the teenager told the company’s service center staff to remove the speed limiter on the Model S. A testimony from one of Barrett’s friends revealed that the 18-year-old “tricked” a Tesla technician into deactivating the limiter.
“A driver makes the car safe, the speed limiter does not,” Tesla’s lawyers told the Florida jurors.
Elon Musk reached out to James Riley a few days after his son’s death. The father of seven asked Musk to acknowledge that the death of his son and his friend “led to the enhanced safety of others.” Following Riley’s request, Tesla updated its release notes for Speed Limit Mode with a dedication, saying: “In memory of Barrett Riley.”
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News
Tesla announces massive investment into xAI
“On January 16, 2026, Tesla entered into an agreement to invest approximately $2 billion to acquire shares of Series E Preferred Stock of xAI as part of their recent publicly-disclosed financing round,” it said.
Tesla has announced a major development in its ventures outside of electric vehicles, as it confirmed today that it invested $2 billion into xAI on January 16.
The move is significant, as it marks the acquisition of shares of Series E Preferred Stock, executed on market terms alongside other investors. The company officially announced it in its Q4 2025 Shareholder Deck, which was released at market close on Wednesday.
The investment follows shareholder approval in 2025 for potential equity stakes in xAI and echoes SpaceX’s earlier $2 billion contribution to xAI’s $10 billion fundraising round.
Tesla said that, earlier this month, it entered an agreement to invest $2 billion to acquire shares of Series E Preferred Stock of xAI:
“Tesla’s investment was made on market terms consistent with those previously agreed to by other investors in the financing round. As set forth… pic.twitter.com/HgtrcHdB2U
— TESLARATI (@Teslarati) January 28, 2026
CEO Elon Musk, who is behind both companies, is now weaving what appears to be an even tighter ecosystem among his ventures, blending Tesla’s hardware prowess with xAI’s cutting-edge AI models, like Grok.
Tesla confirmed the investment in a statement in its Shareholder Deck:
“On January 16, 2026, Tesla entered into an agreement to invest approximately $2 billion to acquire shares of Series E Preferred Stock of xAI as part of their recent publicly-disclosed financing round. Tesla’s investment was made on market terms consistent with those previously agreed to by other investors in the financing round. As set forth in Master Plan Part IV, Tesla is building products and services that bring AI into the physical world. Meanwhile, xAI is developing leading digital AI products and services, such as its large language model (Grok).”
It continued:
“In that context, and as part of Tesla’s broader strategy under Master Plan Part IV, Tesla and xAI also entered into a framework agreement in connection with the investment. Among other things, the framework agreement builds upon the existing relationship between Tesla and xAI by providing a framework for evaluating potential AI collaborations between the companies. Together, the investment and the related framework agreement are intended to enhance Tesla’s ability to develop and deploy AI products and services into the physical world at scale. This investment is subject to customary regulatory conditions with the expectation to close in Q1’2026.”
The history of the partnership traces back to xAI’s founding in July 2023, as Musk launched the company as a counterweight to dominant AI players like OpenAI and Google.
xAI aimed to “understand the true nature of the universe” through unbiased, truth-seeking AI. Tesla, meanwhile, has long invested in AI for its Full Self-Driving (FSD) software and Optimus robots, training models on vast datasets from its vehicle fleet.
The investment holds profound significance for both companies.
For Tesla, it accelerates its Master Plan Part IV, which envisions AI-driven autonomy in vehicles and humanoid robots. xAI’s Grok could enhance Tesla’s real-world AI applications, from optimizing battery management to predictive maintenance, potentially giving Tesla an edge over its biggest rivals, like Waymo.
Investors, on the other hand, stand to gain from this symbiosis. Tesla Shareholders may see boosted stock value through AI innovations, with analysts projecting enhanced margins and significant future growth in robotics. xAI’s valuation could soar, attracting more capital.
Investor's Corner
Tesla (TSLA) Q4 and FY 2025 earnings results
Tesla’s Q4 and FY 2025 earnings come on the heels of a quarter where the company produced over 434,000 vehicles, delivered over 418,000 vehicles, and deployed 14.2 GWh of energy storage products.
Tesla (NASDAQ:TSLA) has released its Q4 and FY 2025 earnings results in an update letter. The document was posted on the electric vehicle maker’s official Investor Relations website after markets closed today, January 28, 2025.
Tesla’s Q4 and FY 2025 earnings come on the heels of a quarter where the company produced over 434,000 vehicles, delivered over 418,000 vehicles, and deployed 14.2 GWh of energy storage products.
For the Full Year 2025, Tesla produced 1,654,667 and delivered 1,636,129 vehicles. The company also deployed a total of 46.7 GWh worth of energy storage products.
Tesla’s Q4 and FY 2025 results
As could be seen in Tesla’s Q4 and FY 2025 Update Letter, the company posted GAAP EPS of $0.24 and non-GAAP EPS of $0.50 per share in the fourth quarter. Tesla also posted total revenues of $24.901 billion. GAAP net income is also listed at $840 million in Q4.
Analyst consensus for Q4 has Tesla earnings per share falling 38% to $0.45 with revenue declining 4% to $24.74 billion, as per estimates from FactSet. In comparison, the consensus compiled by Tesla last week forecasted $0.44 per share on sales totaling $24.49 billion.
For FY 2025, Tesla posted GAAP EPS of $1.08 and non-GAAP EPS of $1.66 per share. Tesla also posted total revenues of $94.827 billion, which include $69.526 billion from automotive and $12.771 billion from the battery storage business. GAAP net income is also listed at $3.794 billion in FY 2025.
xAI Investment
Tesla entered an agreement to invest approximately $2 billion to acquire Series E preferred shares in Elon Musk’s artificial intelligence startup, xAI, as part of the company’s recently disclosed financing round. Tesla said the investment was made on market terms consistent with those agreed to by other participants in the round.
The investment aligns with Tesla’s strategy under Master Plan Part IV, which centers on bringing artificial intelligence into the physical world through products and services. While Tesla focuses on real-world AI applications, xAI is developing digital AI platforms, including its Grok large language model.
Below is Tesla’s Q4 and FY 2025 update letter.
TSLA-Q4-2025-Update by Simon Alvarez
Tesla has rolled out a new Supercharging safety feature in the United States, one that will answer concerns that some owners may have if they need to leave in a pinch.
It is also a suitable alternative for non-Tesla chargers, like third-party options that feature J1772 or CCS to NACS adapters.
The feature has been available in Europe for some time, but it is now rolling out to Model 3 and Model Y owners in the U.S.
With Software Update 2026.2.3, Tesla is launching the Unlatching Charge Cable function, which will now utilize the left rear door handle to release the charging cable from the port. The release notes state:
“Charging can now be stopped and the charge cable released by pulling and holding the rear left door handle for three seconds, provided the vehicle is unlocked, and a recognized key is nearby. This is especially useful when the charge cable doesn’t have an unlatch button. You can still release the cable using the vehicle touchscreen or the Tesla app.”
The feature was first spotted by Not a Tesla App.
This is an especially nice feature for those who commonly charge at third-party locations that utilize plugs that are not NACS, which is the Tesla standard.
For example, after plugging into a J1772 charger, you will still be required to unlock the port through the touchscreen, which is a minor inconvenience, but an inconvenience nonetheless.
Additionally, it could be viewed as a safety feature, especially if you’re in need of unlocking the charger from your car in a pinch. Simply holding open the handle on the rear driver’s door will now unhatch the port from the car, allowing you to pull it out and place it back in its housing.
This feature is currently only available on the Model 3 and Model Y, so Model S, Model X, and Cybertruck owners will have to wait for a different solution to this particular feature.
Tesla announces massive investment into xAI
Tesla (TSLA) Q4 and FY 2025 earnings results
