Despite making some progress in contract negotiations with the United Auto Workers (UAW) union, Ford says there are still some major gaps to address before an agreement is reached. The statement comes after Ford avoided escalated strikes by meeting some UAW demands last week, just as parts workers walked out of 38 Stellantis and General Motors (GM) distribution centers on Friday.
Ford said on Sunday that there were still “significant gaps to close” in contract negotiations with the UAW, according to a report from Reuters. The UAW said it made “some real progress at Ford” over the weekend, although it added that the two parties still had serious issues to work through.
On Sunday evening, Ford said the related “issues are interconnected and must work within an overall agreement that supports our mutual success.”
At the time of writing, the UAW has not yet commented on the statement from Ford. The news also comes ahead of U.S. President Joe Biden’s plans to visit Michigan in support of the strikes on Tuesday.
Ford also said that it would be pausing construction on a $3.5 billion battery manufacturing plant in Michigan, as detailed in a Monday afternoon report from Reuters.
“We are pausing work and limiting spending on construction on the Marshall project until we’re confident about our ability to competitively operate the plant,” Ford said. “We haven’t made any final decision about the planned investment there.”
The Detroit automakers have offered contracts with 20-percent raises over the next four and a half years, though the UAW is reportedly still asking for 40-percent wage hikes over a four-year period, in addition to 32-hour work weeks. The union is also demanding the restoration of defined pension benefits and an end to a tiered wage system that requires a certain amount of time to reach top wages.
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Workers at an additional 20 Stellantis and 18 GM parts distribution centers walked off the job on Friday due to a lack of progress in UAW contract negotiations. The walkouts are straining other Stellantis and GM manufacturing facilities, rendering them unable to receive the necessary parts to continue production. The expanded strikes totaled around 5,600 workers, joining the initial wave of 12,700 workers who walked out a week prior.
The UAW represents roughly 150,000 workers total, and this is the first time in history that the union has lodged strikes against all three of the Michigan automakers simultaneously.
“Like the rest of us all, all we’re asking is to not have to struggle. Just wanting enough money to pay my bills, buy groceries, and have enough for extras like taking my kid to the jump park.”– Samantha Richter, a worker at Ford Michigan Assembly Plant https://t.co/pCgxP36QWo
— UAW (@UAW) September 25, 2023
Last week, GM said it was forced to lay off around 2,000 workers at a Fairfax, Kansas plant, citing a lack of available work due to the UAW strikes. The automaker went on to call the UAW demands “untenable,” adding that it wouldn’t be able to offer unemployment for the laid-off employees.
As the Detroit Free Press reports, one auto supplier in Wixom, Michigan also announced plans to lay off 230 workers on Monday. The figure represents 75 percent of employees at Eagle Industries, Inc., which makes a material used in car door components along with other non-automotive products. While the company hasn’t explicitly disclosed its clients, a separate analysis noted that its product had been used in Ford’s vehicles.
“As a result of unforeseen business circumstances, we are providing information in anticipation of a potential layoff at the worksite,” wrote the company in a note to the state of Michigan. “The estimated number of workers is subject to change due to evolving business circumstances.”
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Some predict that the ongoing strikes will likely result in higher vehicle prices due to increased costs for parts. Another analysis from the University of Michigan noted that as many as 150,000 workers could be subject to layoffs if the strikes last an entire month, highlighting the situation’s far-reaching effects until the parties can finalize a deal.
“These growing spillover effects across the automotive supply chain produce successively larger spillovers to the broader economy, as well,” states the analysis, “as laid-off workers in the supply chain lose purchasing power and cut back on spending in other parts of the economy.”
Update: Updated to include the Monday afternoon report from Reuters, in which Ford said it was pausing construction on a Michigan battery plant.
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Tesla CEO Elon Musk said that flying cars will be coming to the market, something that his own company has hinted at previously.
Musk said on X, in response to a post that read, “We were promised flying cars and all we got is infinite superintelligence for everyone,” “You will get flying cars.”
You will get flying cars
— Elon Musk (@elonmusk) August 12, 2026
The post rang back to when Musk teased flying and hovering capabilities for the Tesla Roadster, the company’s supercar that has been delayed more times than anyone cares to count. It was set for an unveiling earlier this year, but it was then pushed back to August. There is still no sign of it coming.
However, that does not mean it won’t. But one of the biggest features of the Roadster that was teased was a SpaceX package that featured cold gas thrusters on the rear end that would help with white-knuckle acceleration. Another set would face the ground and would help the Roadster gain small bits of altitude, potentially helpful to jump over obstacles.
Elon Musk hints at Tesla Roadster’s “hovering” abilities in SpaceX package
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But it is not a straightforward thing for Musk. As a serial entrepreneur, he tends to spend his time on major disruptors; currently, his largest projects are artificial intelligence and compute power, as well as SpaceX’s launches that will eventually make life multiplanetary.
In the past, he has been critical of flying cars and has been in favor of tunnels, one of the big reasons he started the Boring Company. In 2017 at a TED talk, he said:
“There is a challenge with flying cars in that they’ll be quite noisy. The wind force generated will be very high. Let’s just say that if something’s flying over your head, if there are a whole bunch of flying cars all over the place, that is not an anxiety-reducing situation…You’re thinking, ‘Did they service their hubcap? Or is it going to come off and guillotine me as they’re flying past?’”
However, he’s never been against them. He has also said he’s in favor of both tunnels and flying cars.
Contrary to press reports, I’m not against flying cars. Just said it was important to consider both pros and cons.
— Elon Musk (@elonmusk) March 24, 2015
Most recently, Musk said that anyone who wants a flying car should be able to get one. This was stated last October on the Joe Rogan Experience:
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“My friend Peter Thiel once reflected that the future was supposed to have flying cars, but we don’t have flying cars… I think if Peter wants a flying car, we should be able to buy one.”
Whether the Roadster will be Tesla’s flying car or potentially another one remains in the mind of Musk. Of course, the Roadster will have to make its way to production lines before we find out.
Elon Musk
SpaceX’s next trillion dollar bet has nothing to do with rockets, Musk tells staff
Elon Musk told SpaceX staff AI revenue will soon dwarf rockets and Starlink combined entirely.
Elon Musk told SpaceX employees this week that artificial intelligence, not rockets, will soon carry the company’s revenue. In a roughly 29 minute internal address posted on SpaceX’s X account on Tuesday, Musk said AI revenue will pass every other line of business at SpaceX “probably in September” and pull further ahead by the fourth quarter.
The numbers he gave are specific. SpaceX currently runs 1.4 gigawatts of AI compute capacity. Musk wants that at 10 gigawatts by the end of 2027, a jump he tied directly to revenue: “if we bring 10GW of AI online by the end of next year, it will be $300 billion to $500 billion a year in revenue.” He called those “big numbers,” which undersells a projection larger than what most countries produce in a year.
We made rockets reusable and are rebuilding the internet in space. The next challenge: making life multiplanetary and understanding the true nature of the universe
Watch @ElonMusk deliver a company update to @SpaceX employees pic.twitter.com/5c8rxoCQfu
— SpaceX (@SpaceX) August 11, 2026
Musk went further on where AI fits into SpaceX’s future. “Probably in four or five years, AI will be 99% of the value of SpaceX,” he told staff, adding that digital intelligence would eventually run “a trillion times” ahead of biological intelligence as computing scales. He tied that growth to the company’s founding mission, telling employees “we must win on AI, because the future is overwhelmingly AI and robots,” with the payoff meant to help fund Starship and a Mars program that increasingly runs through Terafab, the joint Tesla, SpaceX and xAI chip plant.
Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry
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None of this is entirely new territory. SpaceX told investors much the same story during its first earnings call as a public company on August 4, where Musk moved the company’s $1 trillion revenue target up a year to 2030 and said Starlink could someday carry a majority of the world’s internet. What the all hands video adds is a hard deadline and a specific power figure Musk had not given publicly before, along with a franker pitch to his own workforce that AI, not launch cadence, is now the thing SpaceX is betting its future on.
The AI revenue itself is not coming from SpaceX training its own models. It is largely Starlink acting as the network layer for xAI’s workloads, plus SpaceX renting out compute capacity directly, the same approach behind the roughly $16 billion the company spent on AI infrastructure in a single quarter.
Musk closed the video with a pitch aimed at recruiting and retention rather than investors, telling employees that anyone who helps SpaceX win the AI race will eventually get the chance to go to the moon or Mars themselves. Whether SpaceX can turn 1.4 gigawatts into 10 in seventeen months is the more immediate question, and one that will show up in quarterly numbers well before anyone leaves Earth.
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.
Tesla CEO Elon Musk says flying cars are coming
SpaceX’s next trillion dollar bet has nothing to do with rockets, Musk tells staff
