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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.
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.
Tesla stock (NASDAQ: TSLA) closed at an all-time high on Tuesday, jumping over 3 percent during the day and finishing at $489.88.
The price beats the previous record close, which was $479.86.
Shares have had a crazy year, dipping more than 40 percent from the start of the year. The stock then started to recover once again around late April, when its price started to climb back up from the low $200 level.
This week, Tesla started to climb toward its highest levels ever, as it was revealed on Sunday that the company was testing driverless Robotaxis in Austin. The spike in value pushed the company’s valuation to $1.63 trillion.
Tesla Robotaxi goes driverless as Musk confirms Safety Monitor removal testing
It is the seventh-most valuable company on the market currently, trailing Nvidia, Apple, Alphabet (Google), Microsoft, Amazon, and Meta.
Shares closed up $14.57 today, up over 3 percent.
The stock has gone through a lot this year, as previously mentioned. Shares tumbled in Q1 due to CEO Elon Musk’s involvement with the Department of Government Efficiency (DOGE), which pulled his attention away from his companies and left a major overhang on their valuations.
However, things started to rebound halfway through the year, and as the government started to phase out the $7,500 tax credit, demand spiked as consumers tried to take advantage of it.
Q3 deliveries were the highest in company history, and Tesla responded to the loss of the tax credit with the launch of the Model 3 and Model Y Standard.
Additionally, analysts have announced high expectations this week for the company on Wall Street as Robotaxi continues to be the focus. With autonomy within Tesla’s sights, things are moving in the direction of Robotaxi being a major catalyst for growth on the Street in the coming year.
Elon Musk
Tesla needs to come through on this one Robotaxi metric, analyst says
“We think the key focus from here will be how fast Tesla can scale driverless operations (including if Tesla’s approach to software/hardware allows it to scale significantly faster than competitors, as the company has argued), and on profitability.”
Tesla needs to come through on this one Robotaxi metric, Mark Delaney of Goldman Sachs says.
Tesla is in the process of rolling out its Robotaxi platform to areas outside of Austin and the California Bay Area. It has plans to launch in five additional cities, including Houston, Dallas, Miami, Las Vegas, and Phoenix.
However, the company’s expansion is not what the focus needs to be, according to Delaney. It’s the speed of deployment.
The analyst said:
“We think the key focus from here will be how fast Tesla can scale driverless operations (including if Tesla’s approach to software/hardware allows it to scale significantly faster than competitors, as the company has argued), and on profitability.”
Profitability will come as the Robotaxi fleet expands. Making that money will be dependent on when Tesla can initiate rides in more areas, giving more customers access to the program.
There are some additional things that the company needs to make happen ahead of the major Robotaxi expansion, one of those things is launching driverless rides in Austin, the first city in which it launched the program.
This week, Tesla started testing driverless Robotaxi rides in Austin, as two different Model Y units were spotted with no occupants, a huge step in the company’s plans for the ride-sharing platform.
Tesla Robotaxi goes driverless as Musk confirms Safety Monitor removal testing
CEO Elon Musk has been hoping to remove Safety Monitors from Robotaxis in Austin for several months, first mentioning the plan to have them out by the end of 2025 in September. He confirmed on Sunday that Tesla had officially removed vehicle occupants and started testing truly unsupervised rides.
Although Safety Monitors in Austin have been sitting in the passenger’s seat, they have still had the ability to override things in case of an emergency. After all, the ultimate goal was safety and avoiding any accidents or injuries.
Goldman Sachs reiterated its ‘Neutral’ rating and its $400 price target. Delaney said, “Tesla is making progress with its autonomous technology,” and recent developments make it evident that this is true.
Investor's Corner
Tesla gets bold Robotaxi prediction from Wall Street firm
Last week, Andrew Percoco took over Tesla analysis for Morgan Stanley from Adam Jonas, who covered the stock for years. Percoco seems to be less optimistic and bullish on Tesla shares, while still being fair and balanced in his analysis.
Tesla (NASDAQ: TSLA) received a bold Robotaxi prediction from Morgan Stanley, which anticipates a dramatic increase in the size of the company’s autonomous ride-hailing suite in the coming years.
Last week, Andrew Percoco took over Tesla analysis for Morgan Stanley from Adam Jonas, who covered the stock for years. Percoco seems to be less optimistic and bullish on Tesla shares, while still being fair and balanced in his analysis.
Percoco dug into the Robotaxi fleet and its expansion in the coming years in his latest note, released on Tuesday. The firm expects Tesla to increase the Robotaxi fleet size to 1,000 vehicles in 2026. However, that’s small-scale compared to what they expect from Tesla in a decade.
Tesla expands Robotaxi app access once again, this time on a global scale
By 2035, Morgan Stanley believes there will be one million Robotaxis on the road across multiple cities, a major jump and a considerable fleet size. We assume this means the fleet of vehicles Tesla will operate internally, and not including passenger-owned vehicles that could be added through software updates.
He also listed three specific catalysts that investors should pay attention to, as these will represent the company being on track to achieve its Robotaxi dreams:
- Opening Robotaxi to the public without a Safety Monitor. Timing is unclear, but it appears that Tesla is getting closer by the day.
- Improvement in safety metrics without the Safety Monitor. Tesla’s ability to improve its safety metrics as it scales miles driven without the Safety Monitor is imperative as it looks to scale in new states and cities in 2026.
- Cybercab start of production, targeted for April 2026. Tesla’s Cybercab is a purpose-built vehicle (no steering wheel or pedals, only two seats) that is expected to be produced through its state-of-the-art unboxed manufacturing process, offering further cost reductions and thus accelerating adoption over time.
Robotaxi stands to be one of Tesla’s most significant revenue contributors, especially as the company plans to continue expanding its ride-hailing service across the world in the coming years.
Its current deployment strategy is controlled and conservative to avoid any drastic and potentially program-ruining incidents.
So far, the program, which is active in Austin and the California Bay Area, has been widely successful.
Tesla stock closes at all-time high on heels of Robotaxi progress
Tesla needs to come through on this one Robotaxi metric, analyst says
