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Elon Musk accused of astroturfing after SpaceX employees expressed support for Boring Co. project
In a rather bizarre turn of events, Elon Musk is now being accused of astroturfing after three SpaceX employees spoke in favor of The Boring Company’s proposed Dugout Loop project for Los Angeles. The Boring Company held its public review at the Dodgers Stadium yesterday, where it presented the concept of its high-speed tunnel system to residents in the area. Only around 50 people attended the event, and a handful opted to express their support for the project.
Independent filmmaker Erin Faulk, who goes by the @erinscafe handle on Twitter, attended The Boring Company’s public hearing. In a series of Twitter posts, Faulk pointed out the public hearing’s weak turnout, while also expressing her doubts about the proposed tunnel system. Faulk summarized her thoughts about the project in a statement to CNET.
“I thought it sounded kind of silly before, but now I’m convinced it’s ridiculous. The desperate attempts to show how it’s going to help people in Los Angeles are kind of transparent. It has such a narrow scope and use,” she said.
The independent filmmaker also discovered that several individuals who spoke in favor of the Boring Company’s proposed Dugout Loop were actually employees of SpaceX. Among these were Hailey Cockrum, a Materials Planner, and Chris Charhut, a Process Development Engineer. This connection with Elon Musk instantly incited controversy among members of the Twitterverse, some of whom accused Musk of astroturfing (compensating a group of individuals to give the impression that a project, idea, or person is enjoying widespread support) the public hearing. Being the controversy magnet that Musk’s name has unfortunately become as of late, it is somewhat unsurprising to see accusations of astroturfing being thrown his way.
“As Elon describes, traffic here is soul-crushing.”
There is no way Elon didn’t pay these people wtf is happening. pic.twitter.com/qBB4xJwzCn
— Scafe says wear a gd mask (@erinscafe) August 29, 2018
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IS THIS REAL LIFE pic.twitter.com/TC11INnFEO
— Scafe says wear a gd mask (@erinscafe) August 29, 2018
While it is true that SpaceX employees did speak on the Boring Company’s public hearing, there is one little problem with the astroturfing accusation. The SpaceX employees who showed up and spoke at the event were LA residents. Thus, they were at Dodgers Stadium as private citizens and had every right to air their support for the Dugout Loop. The Boring Company provided a statement about the event through its official Twitter account, poking a little fun at the astroturfing accusation.
SpaceX employees spoke – not with our knowledge or at our urging – to offer support as private citizens. We‘d have asked them to identify themselves to avoid confusion if we had known. SpaceX has 5k employees in LA – if the goal was to astroturf, we’d have done a much better job!
— The Boring Company (@boringcompany) August 29, 2018
The Dugout Loop and the Boring company might be getting mocked and bashed on social media after its recent public review, but the proposed project is actually getting some support from LA Mayor Eric Garcetti, who described the project as a “great example of public-private partnership.” Dodgers CFO Tucker Kain also aired his support for the project, stating that the team is entirely behind initiatives that would ultimately make it easier for baseball fans to get to a game.
The proposed Dugout Loop will begin at the Dodger Stadium property and run under Vin Scully Avenue and Sunset Boulevard, with starting points being set up at either Vermont/Sunset, Vermont/Santa Monica or Vermont/Beverly. The Boring Company aims to utilize the Dugout Loop as a support for the city’s Metro Red Line stations.
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The tunneling startup would be using its Loop transport concept for the LA tunnel system. The Loop system uses electric pods which are designed to carry up to 16 people at a time. The Boring Company expects to charge $1 per person for every ride in the Loop system. Construction for the Dugout Loop is estimated to take about 14 months to complete. The project is also 100% privately funded, and thus, will be built at no expense to the city’s residents.
The Dugout Loop is, if any, a prototype project that just happens to have public utility as a pleasant side effect. The tunnel, after all, is just one of the Boring Company’s projects across the United States. In Chicago alone, the company is involved in a high-profile project that would see the tunneling startup attempt to develop a high-speed transport system connecting downtown Chicago to O’Hare airport.
The Los Angeles Bureau of Engineering (LABOE) posted a document covering some of the finer details of Boring Company’s proposed Dugout Loop project, which could be accessed here.
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
