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Pablo Escobar’s brother wants $100 million in Tesla shares for Not-a-Flamethrower dispute
Elon Musk is no stranger to taking on powerful forces that stand in the way of his Earth-changing missions, but drug lord families still seem like an odd addition to the list. Despite the improbability, infamous cartel founder and cocaine kingpin Pablo Escobar has recently been linked to the serial entrepreneur over The Boring Company’s Not-a-Flamethrower, specifically through Escobar’s brother. Roberto Escobar claims Musk stole the Flamethrower design from him and plans to sue over it – unless Musk agrees to hand over $100 million dollars in either cash or Tesla shares, that is.
“Elon we both know you stole from me, I am OK to settle this right now for $100 million. Tesla shares is OK or cash. I will win in court, and you will lose more than $100 million,” Escobar said in a statement to The Next Web. “Maybe I will make myself new Tesla CEO with the courts?… Let’s settle this like gentleman. Send me the Tesla Shares to Escobar Inc.”
Someone associated with Musk’s business activities reportedly spent time with Escobar (the living brother, not the deceased drug lord) in the summer of 2017 wherein an Escobar Inc. toy flamethrower concept was discussed, according to a report originally published by TMZ. The Boring Company’s Flamethrower, announced in January 2018, apparently was a dead ringer for Escobar’s idea design-wise, leading cartel leader’s brother to angrily conclude that his idea had been stolen. Musk later responded to TMZ‘s report on Twitter, saying “It’s Not a Flamethrower, Mr Escobar.”
The dispute is interesting and unusual, to say the least, but we can be sure there’s one thing Boring clearly did not get from Escobar Inc. – the flamethrower’s purpose.
“I want the people to be able to burn money, like me and Pablo used to do. I burned probably a couple of billion dollars over the years. Literally burning the money. For many reasons,” Escobar was quoted as saying about the device.
Escobar is now weighing his legal options against Musk, although it’s not clear what options are exactly available.
Prior to 2013, if an inventor could demonstrate their invention predated someone else’s patented invention for the same thing, they could sue and work out a financially retroactive deal to be compensated for their work (more or less). However, with the enactment of the America Invents Act, the United States now has a “first to file” system that only gives inventors one year from public disclosure of their invention to file for patent protection. In Escobar’s case, he’s basically too late to file for a patent where it would matter most to Musk – in the United States. The only other legal workaround would seem to be a lawsuit over a non-disclosure agreement, which doesn’t appear to have happened here. It’s not enough that there were witnesses to the discussion, and it also doesn’t seem like there was even a handshake-type understanding over any claims to the design.
Another thing worth mentioning is that if The Boring Company has already filed for patent protection of its Not-a-Flamethrower design, it doesn’t appear to have published yet based on patent database searches. Since the idea was disclosed in January 2018 (or even 2017, based on Escobar’s claims), it’s now considered ‘prior art’ and renders any other highly similar patent filings ineligible for protection. It would appear that Escobar’s best bet for legal protection would have been to file for a patent right after Musk’s flamethrower was announced so both devices would have been in that muddy one-year window and open to a court fight. Alas, it’s all water under the bridge now.
The Boring Company had a few options to pursue here, actually. First, the tunneling venture could have filed for a design patent which only protects what their flamethrower looks like. These types of patent applications usually issue to full patents quickly unless the patent examiner objects to it based on similar designs. If Boring went this route, we should see a patent show up shortly if one was filed around the time of the product announcement in January 2018.
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A second option The Boring Company could have taken was to file for a utility patent, meaning there was some sort of technical merit to the Not-a-Flamethrower’s design. These publish 18 months after filing unless non-publication is specifically requested. If Boring went this route, well, there are so many timelines that could have been taken, it’s hard to say whether we’ll see anything until a patent issues, assuming one issues at all. Regardless, the patent route was Escobar’s only real route for lawsuit-driven compensation, and he seems out of luck.
Perhaps in response to recent publicity, the Escobar Inc. Flamethrower just went on sale for $250, and according to its company website’s History page, 20,000 units will be produced. This, of course, is the exact amount the Boring Company sold at the original price of $500. Among other interesting news items, one of the gems from that same History page reads, “2004 – Roberto de Jesus Escobar Gaviria is freed from Itagui Prison based on excellent behavior.” This important moment in the Escobar Inc. chronicles is surely only matched by the successful launch of Escobar Inc.’s Flamethrower for burning cold hard cash in cocaine kingpin fashion.
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Elon Musk has declared that SpaceX has effectively solved one of Starship’s most persistent engineering challenges: the reliability of its heat shield tiles.
During the company’s first-ever Earnings Call, the SpaceX CEO stated:
“I don’t want to jinx it or anything, but I think I would call the heat shield problem solved at this point. All indications from data and visual inspection is we have solved it. That doesn’t mean we won’t make improvements, but we do not see any technical obstacles to achieving rapid reusability at this point.”
Starship’s heat shield consists of roughly 18,000 hexagonal ceramic tiles covering the windward side of the upper stage. These tiles form the thermal protection system that shields the vehicle’s stainless-steel structure from the extreme heat of atmospheric reentry.
Elon says he believes the heat shield problem with Starship is currently solved.
He called it “arguably the single biggest problem” pic.twitter.com/eEE9vM5zlz
— TESLARATI (@Teslarati) August 4, 2026
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During descent, atmospheric friction generates temperatures exceeding several thousand degrees Celsius and creates plasma flows capable of melting unprotected metal. The tiles absorb, radiate, and insulate against this energy, allowing the vehicle to survive and potentially fly again. Without a durable heat shield, full and rapid reusability, the cornerstone of Starship’s design for frequent launches, satellite deployments, and deep-space missions, would remain impossible.
The tiles have long been a source of difficulty. On earlier test flights, a significant number of tiles detached during ascent due to vibration, aerodynamic loads, and imperfect attachment methods using pins and adhesives. Gaps between tiles allowed hot plasma to infiltrate, causing secondary damage and hot spots on the underlying structure.
These issues echoed challenges faced by NASA’s Space Shuttle, whose ceramic tiles required extensive, labor-intensive inspections and replacements between missions, preventing rapid turnaround. SpaceX has iteratively improved materials, standardized tile shapes, refined attachment techniques, added secondary ablative layers, and tested sealing methods such as “crunch wrap” felt to close gaps.
Progress was visible across Flights 10–12, with steadily better tile retention, yet questions remained about whether the system could support the minimal-refurbishment goal of rapid reuse.
Flight 13 on July 24 provided the decisive evidence. Ship 40 flew a deliberately more demanding profile with higher dynamic pressure to stress the heat shield beyond typical operational loads. It successfully deployed 20 operational Starlink V3 satellites, the first such payload on a Starship mission, performed an in-space Raptor engine relight, and executed a controlled reentry.
Elon Musk sheds two new bits of detail on Starship after 13th test launch
Cameras on six of the satellites and onboard sensors captured extensive imagery and data of the shield throughout the flight. The ship then achieved its softest splashdown to date in the Indian Ocean, remaining intact and floating rather than breaking apart or exploding as on prior missions. This allowed drone inspections and continuous telemetry of the heat shield in near-real time.
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Post-flight analysis showed the majority of tiles remaining attached with only minor damage and limited plasma streaking at seams. Musk noted that the mission delivered “all the heat shield data we needed and then some.” Combined with visual inspections, these results underpinned his subsequent assessment that the core technical barriers to rapid reusability have been cleared. While refinements will continue, Flight 13 marked a pivotal step toward Starship’s operational future.
SpaceX COO Gwynne Shotwell outlined ambitious plans for Starlink Mobile during the company’s August 4 Earnings call, signaling a direct challenge to U.S. wireless giants like AT&T, T-Mobile, and Verizon.
Shotwell noted that the three companies generate roughly $600 billion in combined annual revenue. “I anticipate us to be able to acquire quite a few of their customers because I think our service will be better,” she said. “We will eliminate dead zones leveraging the satellites in orbit. It will be better during any natural disaster… I’m quite excited about Starlink Mobile.”
SpaceX President & COO Gwynne Shotwell on @Starlink Mobile and its impact on Verizon, AT&T and T-Mobile:
“Roughly, between them, $600 billion a year. I anticipate us to be able to acquire quite a few of their customers. Our service will be better. We will eliminate dead zones… pic.twitter.com/UYZUkrGc0L
— Sawyer Merritt (@SawyerMerritt) August 4, 2026
SpaceX intends to combine its satellite constellation with terrestrial infrastructure. The company has acquired about 65 MHz of spectrum from EchoStar and plans to deploy next-generation Starlink Mobile satellites in 2027, with upgraded service targeted for the end of that year.
Shotwell described the enhanced network, leveraging more satellites and spectrum, as potentially “100 times better” than the current direct-to-cell offering, which already supports basic texting and app-based voice/video in coverage gaps through partnerships. She also indicated plans for low-cost cellular base stations that could integrate with existing Starlink dishes, creating a hybrid system for broader capacity in urban, suburban, and rural areas.
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For the general public, Starlink Mobile promises significant advantages. Satellite connectivity can fill gaps where traditional cell towers fail, delivering service in remote locations, mountains, or during outages caused by storms, wildfires, or infrastructure damage—conditions in which ground networks often collapse.
Users could enjoy more consistent coverage without relying solely on dense tower builds, potentially at competitive prices as SpaceX scales. The hybrid approach aims to support full mobile services, including higher-speed data, while working with unmodified smartphones over time.
These developments revive long-standing but unfounded rumors of a Musk-developed “Tesla phone.” Speculative claims of a “Pi Phone” or similar device with built-in Starlink connectivity have circulated for years on social media, often featuring fabricated images and details. Elon Musk has repeatedly denied any such plans, stating Tesla has no intention of entering the smartphone market unless forced by extreme circumstances with app stores.
No official product, filings, or development announcements have ever materialized; the rumors remain hoaxes.
The announcement quickly pressured telecom stocks. Shares of AT&T, Verizon, and T-Mobile fell between roughly 2 and 4 percent in after-hours and premarket trading as investors weighed the competitive threat from a hybrid satellite-terrestrial network.
While execution challenges remain—spectrum deployment, infrastructure rollout, and regulatory hurdles—Shotwell’s remarks mark SpaceX’s clearest signal yet of entering the consumer mobile market as a full competitor.
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Venture capitalist Chamath Palihapitiya has cautioned investors shorting SpaceX shares, drawing a direct parallel to the intense short-selling pressure Tesla faced in its early public years.
Responding to reports of elevated short interest in the newly public rocket, satellite, and AI company, Palihapitiya noted that similar dynamics played out with Tesla, where aggressive short sellers ultimately “went broke.”
SpaceX (NASDAQ: SPCX) went public on June 12, 2026, in the largest IPO on record, pricing at $135 per share. Shares quickly surged to an all-time high of $225.64 just days later, briefly implying a valuation exceeding $2 trillion. The stock has since retreated sharply amid valuation concerns, lockup expiration fears, and broader market dynamics.
By early August, it traded near $108–$125, representing a roughly 50 percent decline from the peak and bringing the market capitalization closer to the $1.5–1.7 trillion range. On August 4, shares closed up more than 9 percent at $125.33 ahead of earnings before facing pressure in after-hours and premarket trading.
Short interest has climbed dramatically. According to S3 Partners data widely cited in market reports, short positions reached approximately 219.3 million shares by late July, about 34 percent of the limited public float of roughly 640 million shares, and represented a notional value of around $24.6 billion.
Utilization of shares available to borrow hit 95 percent, with borrow fees rising. This level of shorting exceeded the dollar value of short bets against Tesla at the time and built rapidly ahead of two catalysts: the company’s first post-IPO earnings and an August 6 lockup expiration that could free up to 911.5 million additional shares.
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CEO Elon Musk has issued warnings of his own. In mid-July, as short interest approached one-third of the float, he posted that “the survival probability of firms who maintain a significant short position in SpaceX over time is very low,” reiterating his view that the company could ultimately be worth more than Earth if it achieves its goals.
On August 4, just before earnings, Musk responded to the latest short-interest data by saying, “I try to warn them, but they just double down.”
SpaceX delivered its first quarterly results as a public company after the close on August 4. Second-quarter revenue rose 92 percent year-over-year to $7.8 billion, beating consensus estimates near $6.8–6.9 billion.
The net loss narrowed to $541 million, or 9 cents per share, better than the roughly 23–24 cent loss expected. Starlink/connectivity contributed about $4.3 billion (up 66 percent), while the AI business generated $2.6 billion (up roughly 250 percent). Capital expenditures were heavy at $18.4 billion, largely tied to AI infrastructure. Management projected a $100 billion annualized revenue run rate by year-end 2026 and outlined a path toward $1 trillion in annual revenue by 2030.
The combination of Chamath’s historical reminder, Musk’s repeated alerts, and the company’s ambitious growth targets underscores the high-stakes debate surrounding SPCX. Short sellers are positioned for near-term supply pressure from the lockup, while long-term bulls point to Starlink scale, Starship progress, and AI compute expansion as reasons the bears may ultimately face the same fate as many early Tesla skeptics.
SpaceX has solved Starship’s biggest challenge, Elon Musk says
SpaceX is coming for wireless giants with Starlink Mobile
