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7 Democratic senators urge FTC to investigate Elon Musk & Twitter
Senator Elizabeth Warren and six other Democratic senators are pushing the U.S. Federal Trade Commission (FTC) to investigate Elon Musk and Twitter following the Twit Chief’s takeover of the platform.
The group of senators, which include Senators Elizabeth Warren, Edward Markey, Richard Blumenthal, Dianne Feinstein, Ben Ray Lujan, Cory Booker, and Robert Menendez, wrote a letter to the regulator and urged it to examine whether or not Twitter violated an agreement it made with the commission in 2011 to protect user information.
The letter addressed to FTC Chair Lina Khan, says it is in regard to “Twitter’s serious, willful disregard for the safety and security of its users, and encourage the Federal Trade Commission (FTC) to investigate any breach of Twitter’s consent decree or other violations of our consumer protection laws.”
The letter states that Twitter’s new CEO, Elon Musk, has taken “alarming steps,” to undermine the platform’s safety and integrity.
The letter also criticized the change in Twitter’s verification feature.
“When Mr. Musk announced plans to open Twitter’s verification services to all paying users, experts warned the change would exacerbate the platform’s already rampant problems with financial scams, foreign disinformation, and public safety threats. These misguided changes come at a time when Twitter is facing coordinated campaigns of racist, misogynistic, and antisemitic harassment, attempting to exploit the change in ownership to spread hate and vitriol,” the letter stated.
When Elon Musk initially took over the platform over Halloween weekend, several campaigns were launched that spread hate and the use of racial slurs. Twitter took action against the coordinated surge of hateful conduct, and the new leadership team helping Elon Musk shared details about the progress.
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The letter from the seven senators stated that they were concerned that the actions taken by Elon Musk and Twitter’s new management “could already represent a violation of the FTC’s consent decree.”
“We urge the Commission to vigorously oversee its consent decree with Twitter and to bring enforcement actions against any breaches or business practices that are unfair or deceptive, including bringing civil penalties and imposing liability on individual Twitter executives where appropriate. As you recently noted in Senate testimony, “no CEO or company is above the law, and companies must follow our consent decrees,” the letter stated.
I support free speech, but not any one candidate. In fact, I gave money to & voted for Hillary & then voted for Biden.
However, given unprovoked attacks by leading Democrats against me & a very cold shoulder to Tesla & SpaceX, I intend to vote Republican in November.
— Elon Musk (@elonmusk) May 30, 2022
It’s no secret that key Democratic leaders are critical of Elon Musk. In 2021, they began focusing their attack campaigns on Elon Musk. One example is Senator Warren’s Facebook ad campaign claiming that Elon Musk is “whining like a baby” and that he had been “freeloading off of working people,” to which he responded:
“This is such a deeply messed up lie to the American people. She is the one freeloading off taxpayers while I’m paying the largest amount of tax of any individual in history.” In her ad campaigns against Elon Musk, Senator Warren asked her supporters to give her $10 to help pass a wealth tax.
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In May, Elon Musk said that he had voted Democrat in the past but is voting Republican since the party had “become the party of division & hate.”
Teslarati reached out to the FTC, but the regulator declined to comment. However, a spokesperson for the regulator told PC Mag, “I can confirm we received the letter, but we do not have any comment.”
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In a new note to investors on Tuesday, Morgan Stanley analyst Andrew Percoco said that Tesla has one big financial question to answer for investors regarding its Robotaxi rollout, Full Self-Driving software, and Optimus.
Percoco said in the note that, for the most part, investors are still very positive about the direction the company is headed. However, there are some things the firm would like to see, and they have to do with financials.
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Tesla bulls are more than convinced that the company’s Full Self-Driving software is proof it can develop physical AI. Financially, however, there are still some questions, especially on elevated spending, which CEO Elon Musk said would occur as the company works to roll out Robotaxi faster and continue developing its Optimus robot.
The latter two are where Tesla will have to prove progress to investors, as Percoco writes that both projects “will require clearer evidence that Robotaxi is scaling and more tangible Optimus proof points to support the ROI on elevated capex.”
Percoco said the second quarter earnings call did not change his long-term thesis of where Tesla is positioned in the AI race, which is out in front. However, there are concerns that weaker gross margins and higher R&D spend will stress financials, and that has “sharpened our (and investors’) focus on measurable progress across Robotaxi and Optimus.”
Additionally, Robotaxi still needs to be proven with more operation in existing cities while maintaining safety but improving how many rides it gives in any given time, he said. For Optimus, Percoco wrote that he is “still looking for evidence beyond commentary around SOP.”
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Morgan Stanley put Percoco in charge of covering Tesla after long-time analyst Adam Jonas transitioned to the automotive side.
Currently, Morgan Stanley has a $415 price target on Tesla and a ‘Hold’ rating on the stock. It is trading at around $330 at the time of publication, which was 2:30 P.M. on the East Coast.
SpaceX’s massive investment in AI will make it a big winner, Argus Research said after the company’s successful earnings call last week.
The firm also upgraded shares to a Buy from Hold and set a $160 price target.
SpaceX (NASDAQ: SPCX) is currently recovering from its heavy AI infrastructure investments, as it spent nearly $16 billion in Q2 alone. The company did this primarily by monetizing high-demand GPU compute capacity at a much faster pace than traditional data center economics would suggest.
Company CFO Bret Johnsen said that SpaceX would be able to pay back anything on new deployments within a year.
There are plenty of ways the company can do this:
Leasing excess compute capacity through contracts
SpaceX has already built Colossus and Colossus II, largely for its own model training. However, much of that capacity is already rented out to third parties. It already has major deals with Anthropic, Google, and Reflection AI. These partnerships are adding billions per month to SpaceX’s spreadsheet.
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High utilization driven by industry-wide scarcity
The demand for advanced AI training and inference capacity continues to exceed what is available for use. SpaceX can fill new racks quickly after they come online, so the capital deployed converts into revenue with minimal idle time.
Additionally, management and outside observers have described the new compute capital as behaving more like a cost-of-goods-sold than traditional multi-year capex, especially because of this rapid monetization pattern.
Capacity has already scaled from ~0.4 GW a year to 1.4 GW annually by the end of Q2. There are targets of more than 2 GW by year-end.
High incremental margins on the rental business once capacity is online
GPU cloud providers often operate at strong gross margins. SpaceX can monetize capacity that was already partially built or can be added efficiently. This means that incremental EBITDA margins on the rental revenue are usually high. This accelerates cash recovery relative to the gross capital outlay.
Parallel monetization of its own AI software and applications
Beyond pure infrastructure rental, SpaceX also generates revenue from Grok through subscriptions and usage, from X through ads, data, and other related services, enterprise APIs, and the planned integration of the Cursor coding tools acquisition.
These application layers ride on the same compute infrastructure and provide additional high-margin streams that could offset build-out costs. AI-segment revenue overall rose sharply to about $2.6 billion in Q2, according to Motley Fool. This was driven primarily by the infrastructure contracts, but the software side is also partially responsible.
Efficient, large-scale deployment and vertical integration advantages
SpaceX has emphasized the rapid construction of power and cooling infrastructure and favorable cost-per-megawatt economics relative to industry benchmarks in some disclosures.
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Combined with its ability to scale capacity aggressively and the fact that many contracts start generating revenue within months of capacity coming online, the effective payback compresses dramatically compared with more conventional multi-year data-center projects.
SpaceX’s dominant near-term recovery path will turn the AI clusters into a hyperscale-style compute rental business for other leading AI companies while still using a portion for internal models.
Tesla headlights have caused a recall of over 20,000 of the company’s two most popular vehicles, the Model 3 and Model Y, due to the low-beam bulb exceeding the maximum allowed intensity according to federal standards.
Tesla initiated the recall with the National Highway Traffic Safety Administration (NHTSA) this morning, stating that the low-beam output “exceeds the maximum allowed intensity in the outer upper-right and outer upper-left areas of the 10U and 90U zone, as prescribed in FMVSS No. 108.”
Tesla sourced the impacted headlights from Marelli Automotive Lighting, a Mexico-based company. The recall impacts 2020-2023 Model Y vehicles and 2017-2023 Model 3 vehicles. It is estimated that every VIN in this recall is impacted by the defect.
🚨 Tesla is recalling 20,349 2020-23 Model Y vehicles and 2017-23 Model 3 vehicles due to an excessively bright headlamp low beam.
Currently, there is no remedy plan in place, as it is still being developed. pic.twitter.com/y34cIO2U0B
— TESLARATI (@Teslarati) August 11, 2026
Typically, Tesla would remedy recalls of this nature through an Over-the-Air software update, which has been a major focus of criticism by the company and its supporters because the NHTSA still refers to it as a “recall,” even though it requires no action by the vehicle owner. The fix is shipped over the internet and downloaded to the car.
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However, there appears to be a potentially different solution for this problem. Tesla has not developed a remedy for this issue, so it could potentially be on the way. The big issue appears to be the fact that these recalled lamps are out of production, and this is an old body style for both vehicles. The headlights and front-end designs are completely different.
Tesla switched to another supplier when the affected headlight design was discontinued. It plans to begin notifying owners of their remedy options by September 15.
Tesla filed a petition protesting the recall to fix the vehicles’ headlight issue, but the NHTSA denied it. Now, Tesla will come up with a solution to fix it.
Tesla has one big financial question to answer for investors: Morgan Stanley
SpaceX AI investment gamble will make it a big winner, firm says
