News
Driver of Model X crash in Montana pens open letter to Musk, calls Tesla drivers “lab rats” [Updated]
Pang, the driver of the Model X that crashed in Montana earlier this month has posted an open letter to Elon Musk and Tesla asking the company to “take responsibility for the mistakes of Tesla products”. He accuses Tesla for allegedly using drivers as “lab rats” for testing of its Autopilot system.
In an email sent to us and also uploaded to the Tesla Motors Club forum, Pang provides a detailed account of what happened the day of the crash. He says he and a friend drove about 600 miles on Interstate 90 on the way to Yellowstone National Park. When he exited the highway to get on Montana route 2, he drove for about a mile, saw conditions were clear, and turned on Autopilot again. Pang describes what happened next as follows:
“After we drove about another mile on state route 2, the car suddenly veered right and crashed into the safety barrier post. It happened so fast, and we did not hear any warning beep. Autopilot did not slow down at all after the crash, but kept going in the original speed setting and continued to crash into more barrier posts in high speed. I managed to step on the break, turn the car left and stopped the car after it crashed 12 barrier posts.
“After we stopped, we heard the car making abnormal loud sound. Afraid that the battery was broken or short circuited, we got out and ran away as fast as we could. After we ran about 50 feet, we found the sound was the engine were still running in high speed. I returned to the car and put it in parking, that is when the loud sound disappeared.”
Pang goes on to explain how his Tesla Model X driving on Autopilot continued to travel on its own even after veering off the road and crashing into a roadside stake. “I was horrified by the fact that the Tesla autopilot did not slow down the car at all after the intial crash. After we crashed on the first barrier post, autopilot continued to drive the car with the speed of 55 to 60 mph, and crashed another 11 posts. Even after I stopped the car, it was still trying to accelerate and spinning the engine in high speed. What if it is not barrier posts on the right side, but a crowd?”
Photo credit: Steven Xu
After the accident, Tesla reviewed the driving logs from the Model X and reported that the car was operating for more than two miles with no hands on the steering wheel, despite numerous alarms and warnings issued by the car. Pang says he never heard any audible warnings. Comments on TMC range from the incredulous to the acerbic. Most feel Teslas simply don’t operate the way Pang said his car did. Among other discrepancies, the cars are designed to put themselves in Park if the driver’s door is opened with no one in the driver’s seat.
But that hasn’t stopped Pang from voicing his strong opinions on Tesla’s Autopilot system. “It is clear that Tesla is selling a beta product with bugs to consumers, and ask the consumers to be responsible for the liability of the bugging autopilot system. Tesla is using all Tesla drivers as lab rats.”
A car that crashes but continues to accelerate is certainly a scary thought. There is no way to resolve the discrepancy between what Pang says happened and Tesla’s account of what occurred. In an updated email sent to us by friend and english translator for Mandarin speaking Pang, Tesla has reached out to Pang to address the matter.
The original open letter from Pang reads as follows:
A Public Letter to Mr. Musk and Tesla For The Sake Of All Tesla Driver’s Safety
From the survivor of the Montana Tesla autopilot crash
My name is Pang. On July 8, 2016, I drove my Tesla Model X from Seattle heading to Yellowstone Nation Park, with a friend, Mr. Huang, in the passenger seat. When we were on highway I90, I turned on autopilot, and drove for about 600 miles. I switched autopilot off while we exited I90 in Montana to state route 2. After about 1 mile, we saw that road condition was good, and turned on autopilot again. The speed setting was between 55 and 60 mph. After we drove about another mile on state route 2, the car suddenly veered right and crashed into the safety barrier post. It happened so fast, and we did not hear any warning beep. Autopilot did not slow down at all after the crash, but kept going in the original speed setting and continued to crash into more barrier posts in high speed. I managed to step on the break, turn the car left and stopped the car after it crashed 12 barrier posts. After we stopped, we heard the car making abnormal loud sound. Afraid that the battery was broken or short circuited, we got out and ran away as fast as we could. After we ran about 50 feet, we found the sound was the engine were still running in high speed. I returned to the car and put it in parking, that is when the loud sound disappeared. Our cellphone did not have coverage, and asked a lady passing by to call 911 on her cellphone. After the police arrived, we found the right side of the car was totally damaged. The right front wheel, suspension, and head light flied off far, and the right rear wheel was crashed out of shape. We noticed that the barrier posts is about 2 feet from the white line. The other side of the barrier is a 50 feet drop, with a railroad at the bottom, and a river next. If the car rolled down the steep slope, it would be really bad.
Concerning this crash accident, we want to make several things clear:
1. We know that while Tesla autopilot is on but the driver’s hand is not on the steering wheel, the system will issue warning beep sound after a while. If the driver’s hands continue to be off the steering wheel, autopilot will slow down, until the driver takes over both the steering wheel and gas pedal. But we did not hear any warning beep before the crash, and the car did not slow down either. It just veered right in a sudden and crashed into the barrier posts. Apparently the autopilot system malfunctioned and caused the crash. The car was running between 55 and 60 mph, and the barrier posts are just 3 or 4 feet away. It happened in less than 1/10 of a second from the drift to crash. A normal driver is impossible to avoid that in such a short time.
2. I was horrified by the fact that the Tesla autopilot did not slow down the car at all after the intial crash. After we crashed on the first barrier post, autopilot continued to drive the car with the speed of 55 to 60 mph, and crashed another 11 posts. Even after I stopped the car, it was still trying to accelerate and spinning the engine in high speed. What if it is not barrier posts on the right side, but a crowd?
3. Tesla never contacted me after the accident. Tesla just issued conclusion without thorough investigation, but blaming me for the crash. Tesla were trying to cover up the lack of dependability of the autopilot system, but blaming everything on my hands not on the steering wheel. Tesla were not interested in why the car veered right suddenly, nor why the car did not slow down during the crash. It is clear that Tesla is selling a beta product with bugs to consumers, and ask the consumers to be responsible for the liability of the bugging autopilot system. Tesla is using all Tesla drivers as lab rats. We are willing to talk to Tesla concerning the accident anytime, anywhere, in front of the public.
4. CNN’s article later about the accident was quoting out of context of our interview. I did not say that I do not know either Tesla or me should be responsible for the accident. I might consider buying another Tesla only if they can iron out the instability problems of their system.
As a survivor of such a bad accident, a past fan of the Tesla technology, I now realized that life is the most precious fortune in this world. Any advance in technology should be based on the prerequisite of protecting life to the maximum extend. In front of life and death, any technology has no right to ignore life, any pursue and dream on technology should first show the respect to life. For the sake of the safety of all Tesla drivers and passengers, and all other people sharing the road, Mr. Musk should stand up as a man, face up the challenge to thoroughly investigate the cause of the accident, and take responsibility for the mistakes of Tesla product. We are willing to publicly talk to you face to face anytime to give you all the details of what happened. Mr. Musk, you should immediately stop trying to cover up the problems of the Tesla autopilot system and blame the consumers.
Tesla’s Response on TMC
TM Ownership, Saturday at 12:11 PM
Dear Mr. Pang,
We were sorry to hear about your accident, but we were very pleased to learn both you and your friend were ok when we spoke through your translator on the morning of the crash (July 9). On Monday immediately following the crash (July 11), we found a member of the Tesla team fluent in Mandarin and called to follow up. When we were able to make contact with your wife the following day, we expressed our concern and gathered more information regarding the incident. We have since made multiple attempts (one Wednesday, one Thursday, and one Friday) to reach you to discuss the incident, review detailed logs, and address any further concerns and have not received a call back.
As is our standard procedure with all incidents experienced in our vehicles, we have conducted a thorough investigation of the diagnostic log data transmitted by the vehicle. Given your stated preference to air your concerns in a public forum, we are happy to provide a brief analysis here and welcome a return call from you. From this data, we learned that after you engaged Autosteer, your hands were not detected on the steering wheel for over two minutes. This is contrary to the terms of use when first enabling the feature and the visual alert presented you every time Autosteer is activated. As road conditions became increasingly uncertain, the vehicle again alerted you to put your hands on the wheel. No steering torque was then detected until Autosteer was disabled with an abrupt steering action. Immediately following detection of the first impact, adaptive cruise control was also disabled, the vehicle began to slow, and you applied the brake pedal.
Following the crash, and once the vehicle had come to rest, the passenger door was opened but the driver door remained closed and the key remained in the vehicle. Since the vehicle had been left in Drive with Creep Mode enabled, the motor continued to rotate. The diagnostic data shows that the driver door was later opened from the outside and the vehicle was shifted to park. We understand that at night following a collision the rotating motors may have been disconcerting, even though they were only powered by minimal levels of creep torque. We always seek to learn from customer concerns, and we are looking into this behavior to see if it can be improved. We are also continually studying means of better encouraging drivers to adhere to the terms of use for our driver assistance features.
We are still seeking to speak with you. Please contact Tesla service so that we can answer any further questions you may have.
Sincerely,
The Tesla team
Tesla is bringing closure to its flagship Model S and Model X vehicles, which CEO Elon Musk said several years ago were only produced for “sentimental reasons.”
The Model S and Model X have been light contributors to Tesla’s delivery growth over the past few years, commonly contributing only a few percentage points toward the over 1.7 million cars the company has handed over to customers annually since 2022.
However, the Model S and Model X have remained in production because of their high-end performance and flagship status; they are truly two vehicles that are premium offerings and do not hold major weight toward Tesla’s future goals.
On Wednesday, during the Q4 2025 Earnings Call, Musk confirmed that Tesla would bring closure to the two models, ending their production and making way for the manufacturing efforts of the Optimus robot:
“It is time to bring the Model S and Model X programs to an end with an honorable discharge. It is time to bring the S/X programs to an end. It’s part of our overall shift to an autonomous future.”
Musk said the production lines that Tesla has for the Model S and Model X at the Fremont Factory in Northern California will be transitioned to Optimus production lines that will produce one million units per year.
Tesla Fremont Factory celebrates 15 years of electric vehicle production
Tesla will continue to service Model S and Model X vehicles, but it will officially stop deliveries of the cars in Q2, as inventory will be liquidated. When they’re gone, they’re gone.
BREAKING: Tesla will wind down Model S and Model X production next quarter, Elon Musk confirms.
“It is time to bring the Model S and Model X programs to an end with an honorable discharge.” pic.twitter.com/Czn7aQjJE1
— TESLARATI (@Teslarati) January 28, 2026
Tesla has been making moves to sunset the two vehicles for the better part of one year. Last July, it stopped taking any custom orders for vehicles in Europe, essentially pushing the idea that the program was coming to a close soon.
Musk said back in 2019:
“I mean, they’re very expensive, made in low volume. To be totally frank, we’re continuing to make them more for sentimental reasons than anything else. They’re really of minor importance to the future.”
That point is more relevant than ever as Tesla is ending the production of the cars to make way for Optimus, which will likely be Tesla’s biggest product in the coming years.
Musk added during the Earnings Call on Wednesday that he believes Optimus will be a major needle-mover of the United States’ GDP, as it will increase productivity and enable universal high income for humans.
Investor's Corner
LIVE BLOG: Tesla (TSLA) Q4 and FY 2025 earnings call
Tesla’s (NASDAQ:TSLA) earnings call follows the release of the company’s Q4 and full-year 2025 update letter.
Tesla’s (NASDAQ:TSLA) earnings call follows the release of the company’s Q4 and full-year 2025 update letter, which was published on Tesla’s Investor Relations website after markets closed on January 28, 2025.
The results cap a quarter in which Tesla produced more than 434,000 vehicles, delivered over 418,000 vehicles, and deployed 14.2 GWh of energy storage products. For the full year, Tesla produced 1.65 million vehicles and delivered 1.63 million, while total energy storage deployments reached 46.7 GWh.
Tesla’s Q4 and FY 2025 Results
According to Tesla’s Q4 and FY 2025 Update Letter, the company posted GAAP earnings per share of $0.24 and non-GAAP EPS of $0.50 in the fourth quarter. Total revenue for Q4 came in at $24.901 billion, while GAAP net income was reported at $840 million.
For full-year 2025, Tesla reported GAAP EPS of $1.08 and non-GAAP EPS of $1.66 per share. Total revenue reached $94.83 billion, including $69.53 billion from automotive operations and $12.78 billion from the company’s energy generation and storage business. GAAP net income for the year totaled $3.79 billion.
Earnings call updates
The following are live updates from Tesla’s Q4 and FY 2025 earnings call. I will be updating this article in real time, so please keep refreshing the page to view the latest updates on this story.
16:25 CT – Good day to everyone, and welcome to another Tesla earnings call live blog. There’s a lot to unpack from Tesla’s Q4 and FY 2025 update letter, so I’m pretty sure this earnings call will be quite interesting.
16:30 CT – The Q4 and FY 2025 earnings call officially starts. IR exec Travis Axelrod opens the call. Elon and other executives are present.
16:30 CT – Elon makes his opening statement and explains why Tesla changed its mission to “Amazing Abundance.” “With the continued growth of AI and robotics, I think we’re headed towards a future of universal high income,” Musk said, adding that along the way, Tesla will still be improving its products while keeping the environment safe and healthy.
16:34 CT – Elon noted that the first steps for this future are happening this year, thanks to Tesla’s autonomy and robotics programs, which will be launching and ramping this year. He also highlighted that Tesla will be making major investments this year, though the company will be very strategic when it comes to its funding. “I think it makes a ton of strategic sense,” Musk said.
16:36 CT – Elon also announces the end of the Model S and Model X programs “with an honorable discharge.” If you’re interested in buying a Model S or X, it’s best to do it now, Musk said. The Model S and Model X factory in Fremont will be replaced by an Optimus line. “It’s slightly sad, but it is time to bring the S and X program to an end. It’s part of our overall shift to an autonomous future,” Musk said.
16:38 CT – Elon discusses how Unsupervised FSD is now starting for the Robotaxi service. He noted that these Unsupervised Robotaxis don’t have any chase cars as of yesterday. He reiterated Tesla’s plans for owners to be able to add their own vehicles to the Robotaxi fleet. Autonomy target for the end of the year is about a quarter or half of the United States, Musk said.
16:41 CT – Elon noted that the Tesla Energy team is absolutely killing it. He also stated that Tesla expects its Energy business to continue growing, and that the “solar opportunity is underrated.”
16:43 CT –Elon also added that Tesla Optimus 3 will be unveiled in about three months, probably. The Model S and Model X line in Fremont will be a million-unit Optimus production line. Looks like Optimus is really coming out of the gate with large, meaningful volumes. “The normal S curve for manufacturing ramps is longer for Optimus,” Musk stated. “Long term, I think Optimus will have a significant impact on the US GDP.”
16:44 CT – Elon closes his opening statements with a sincere thanks to the Tesla team. He also noted that he feels fortunate to be able to work alongside such a talented workforce.
Elon ends his opening remarks with an optimistic prediction about the future.“The future is more exciting than you can imagine,” he concluded.
16:47 CT – Tesla CFO Vaibhav Taneja makes his opening remarks. He discusses several aspects of Tesla’s Q4 milestones. He noted that Tesla Energy achieved yet another gross profit record during the fourth quarter. There’s insane demand for the Megapack and Powerwall. Backlogs for these products are healthy this 2026. He also noted that Tesla ended 2025 with a bigger vehicle order backlog compared to recent years.
16:53 CT – Investor questions from Say begin. The first question is about Tesla’s expectations for the Robotaxi Network. Lars Moravy noted that it has the advantage of manufacturing and scale, and Tesla believes that the Robotaxi Network will significantly grow year over year. Elon highlighted that the Cybercab will be produced with no steering wheel or pedals. No fallback. Elon also noted that Tesla expects to produce more Cybercabs than all its other vehicles combined in the future.
16:51 CT – The next question is if Tesla still expects to launch new models, such as affordable cars. Lars Moravy noted that Tesla did release affordable variants last year, and Tesla is still pushing hard to lower its costs. That being said, Tesla is really pushing the Cybercab as its total addressable market is larger than consumer-owned cars. Lars also mentioned that Tesla will produce different vehicles for its Robotaxi services.
16:56 CT – Elon noted that eventually, Tesla will produce mostly autonomous cars. The exception would be the next-generation Roadster, which will be a true driver’s car.
17:03 CT – A question about Elon’s past comments about a potential next pickup truck was asked. Lars noted that the Cybertruck is still performing well in the electric pickup truck segment, though Tesla is known for flexibility. Elon added that Tesla will be transitioning the Cybertruck line to a fully autonomous vehicle line. He also stated that the Cybertruck is a useful vehicle. “An autonomous Cybertruck will be useful for that.”
17:10 CT – A question was asked about when FSD will be 100% Unsupervised. Elon noted that 100% Unsupervised FSD is already being used today, though only in the Austin Robotaxi program. Tesla is still being extremely careful with its rollout.
When asked about Tesla’s chip program, Elon noted that he feels pretty good about Tesla’s chip strategy. But in terms of selling Tesla’s chips outside Tesla, the company has to make sure it has enough chips for Optimus robots, data centers, and other programs first.
17:18 CT – Analyst questions begin. First up is Wolf Research. He asks about Tesla’s increasing Capex, specifically where the majority of it is going. The Tesla CFO noted that programs in six factories are going live this year, so that consumes Capex. The Optimus program also consumes a lot of resources. The growth of Tesla’s current capacity is also consuming a lot of resources. As for how these programs will be funded, the CFO pointed to Tesla’s massive war chest, as well as initiatives such as the Robotaxi Network.
17:21 CT – Morgan Stanley asks about Tesla’s xAI investment. The analyst asked about more information about how Tesla and xAI will work together. The CFO noted that this investment is part of Master Plan Part IV. Elon also mentioned some advantages for xAI’s technology for Tesla’s products, like Grok being used to manage a Robotaxi fleet or a group of Optimus robots.
17:24 CT – Barclays asks Elon about the constraints on memory. Does Tesla have any near term constraints for Tesla vehicles’ memory? Elon responded that the Tesla AI computer is already very compute and memory-efficient. The intelligence per gigabyte is important. Musk noted that Tesla is ahead of the industry by an order of magnitude or more.
17:29 CT – Cannacord asks about startups from China entering the humanoid market. What competitive advantage does Optimus have compared to these rivals? Elon stated that he believes China will be a key competitor in the humanoid robot market. China will be the toughest competitor for Tesla. That being said, Elon noted that Tesla believes Optimus will be ahead in real-world intelligence, electromechanical dexterity, and hand design.
News
Tesla announces massive investment into xAI
“On January 16, 2026, Tesla entered into an agreement to invest approximately $2 billion to acquire shares of Series E Preferred Stock of xAI as part of their recent publicly-disclosed financing round,” it said.
Tesla has announced a major development in its ventures outside of electric vehicles, as it confirmed today that it invested $2 billion into xAI on January 16.
The move is significant, as it marks the acquisition of shares of Series E Preferred Stock, executed on market terms alongside other investors. The company officially announced it in its Q4 2025 Shareholder Deck, which was released at market close on Wednesday.
The investment follows shareholder approval in 2025 for potential equity stakes in xAI and echoes SpaceX’s earlier $2 billion contribution to xAI’s $10 billion fundraising round.
Tesla said that, earlier this month, it entered an agreement to invest $2 billion to acquire shares of Series E Preferred Stock of xAI:
“Tesla’s investment was made on market terms consistent with those previously agreed to by other investors in the financing round. As set forth… pic.twitter.com/HgtrcHdB2U
— TESLARATI (@Teslarati) January 28, 2026
CEO Elon Musk, who is behind both companies, is now weaving what appears to be an even tighter ecosystem among his ventures, blending Tesla’s hardware prowess with xAI’s cutting-edge AI models, like Grok.
Tesla confirmed the investment in a statement in its Shareholder Deck:
“On January 16, 2026, Tesla entered into an agreement to invest approximately $2 billion to acquire shares of Series E Preferred Stock of xAI as part of their recent publicly-disclosed financing round. Tesla’s investment was made on market terms consistent with those previously agreed to by other investors in the financing round. As set forth in Master Plan Part IV, Tesla is building products and services that bring AI into the physical world. Meanwhile, xAI is developing leading digital AI products and services, such as its large language model (Grok).”
It continued:
“In that context, and as part of Tesla’s broader strategy under Master Plan Part IV, Tesla and xAI also entered into a framework agreement in connection with the investment. Among other things, the framework agreement builds upon the existing relationship between Tesla and xAI by providing a framework for evaluating potential AI collaborations between the companies. Together, the investment and the related framework agreement are intended to enhance Tesla’s ability to develop and deploy AI products and services into the physical world at scale. This investment is subject to customary regulatory conditions with the expectation to close in Q1’2026.”
The history of the partnership traces back to xAI’s founding in July 2023, as Musk launched the company as a counterweight to dominant AI players like OpenAI and Google.
xAI aimed to “understand the true nature of the universe” through unbiased, truth-seeking AI. Tesla, meanwhile, has long invested in AI for its Full Self-Driving (FSD) software and Optimus robots, training models on vast datasets from its vehicle fleet.
The investment holds profound significance for both companies.
For Tesla, it accelerates its Master Plan Part IV, which envisions AI-driven autonomy in vehicles and humanoid robots. xAI’s Grok could enhance Tesla’s real-world AI applications, from optimizing battery management to predictive maintenance, potentially giving Tesla an edge over its biggest rivals, like Waymo.
Investors, on the other hand, stand to gain from this symbiosis. Tesla Shareholders may see boosted stock value through AI innovations, with analysts projecting enhanced margins and significant future growth in robotics. xAI’s valuation could soar, attracting more capital.
Tesla brings closure to flagship ‘sentimental’ models, Musk confirms
LIVE BLOG: Tesla (TSLA) Q4 and FY 2025 earnings call
