Neuralink has responded to claims of inhumane treatment during the animal testing phases of various company products, stating that animal welfare is a priority. “At Neuralink, we are absolutely committed to working with animals in the most humane and ethical way possible.”
Last week, reports surfaced of a lawsuit against the University of California at Davis from the Physicians Committee of Responsible Medicine (PCRM). The suit claims that the facility “failed to provide dying monkeys with adequate veterinary care, used an unapproved substance known as “Bioglue” that killed monkeys by destroying portions of their brains, and failed to provide for the psychological well-being of monkeys assigned to the experiment.” Earlier today, Teslarati reported an extensive timeline of events from the beginning of the partnership between UC Davis and Neuralink to the most recent developments, which include the potential of videos and photographs of the animals involved in the testing. Teslarati obtained several copies of veterinarian records from autopsies of some monkeys used in the experiments.
Neuralink is now responding to the various claims of animal abuse in a lengthy statement that outlines the past, present, and future developments of Neuralink trials. The company maintains that all animals are treated respectfully and ethically.
EXCLUSIVE: Neuralink dragged into humane testing lawsuit – Timeline of Events
Neuralink ended its partnership with UC Davis in November 2020, just two months after PCRM sent a California Public Records request for information regarding the Neuralink trials. The request is eventually denied in accordance with California State Code 6255(a), which says that the Agency “shall justify withholding any record by demonstrating that the record in question is exempt under express provisions of this chapter or that on the facts of the particular case the public interest served by not disclosing the record clearly outweighs the public interest served by disclosure of the record.”
Neuralink took several of the monkeys back to its testing facilities in Northern California for in-house experiments. “Once construction of our in-house facility was completed, we were able to bring some unimplanted macaques from UC Davis with us to Neuralink. This included Pager, who would later be implanted with our Neuralink device and go on to achieve outstanding brain-computer interface performance, while freely behaving and unrestrained, as demonstrated in the Monkey MindPong video,” the company’s official response said. “While the facilities and care at UC Davis did and continue to meet federally mandated standards, we absolutely wanted to improve upon these standards as we transitioned animals to our in-house facilities.”
Neuralink says that “no injuries occurred at any time to animals housed at UC Davis” while the tests were ongoing. The company admits several animals were euthanized for research purposes, but they were done under controlled circumstances:
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“The initial work from these procedures allowed us to develop our novel surgical and robot procedures, establishing safer protocols for subsequent survival surgeries. Survival studies then allowed us to test the function of different generations of implanted devices as we refined them towards human use. The use of every animal was extensively planned and considered to balance scientific discovery with the ethical use of animals. As part of this work, two animals were euthanized at planned end dates to gather important histological data, and six animals were euthanized at the medical advice of the veterinary staff at UC Davis. These reasons included one surgical complication involving the use of the FDA-approved product (BioGlue), one device failure, and four suspected device-associated infections, a risk inherent with any percutaneous medical device. In response we developed new surgical protocols and a fully implanted device design for future surgeries.”
Interestingly, PCRM said in a press release that “BioGlue” is an unapproved substance. FDA documents obtained by Teslarati show that BioGlue was approved for use in 2001, but the agency also included a warning of potential side effects when BioGlue is applied to the phrenic nerve. Application of BioGlue to this area in animals can cause acute nerve injury. Additionally, “BioGlue application to the surface of the heart can cause coagulation necrosis that extends into the myocardium, which could reach underlying conduction tissue and may cause acute, focal sinoatrial node degeneration,” the documents said. Five pigs were tested during initial animal experimentation while the FDA was determining BioGlue’s safety. All five pigs survived to the designated observation time.
Neuralink details humane animal treatment during Link v0.9 testing
Presently, the animals involved in Neuralink testing are housed at the company’s 6,000-square-foot facility that houses farm animals and rhesus macaques. The company takes care of the animals from the time they enter the facility to the time they leave, even detailing an animal’s process for “retirement:”
“Can we release the animals that regularly choose not to participate or who have completed their contribution to the study? Yes! We opted to retire animals at the conclusion of their projects. We retired several macaques to a sanctuary last March because they consistently chose to spend their day swimming in their pools, foraging, and relaxing in their hammocks rather than attending the game we presented to them. Their brand new enclosures and sanctuary costs were fully funded by Neuralink.”
Moving forward, Neuralink says it is always working to improve the current standards for animal well-being. “We also look forward to a day where animals are no longer necessary for medical research. Yet our society currently relies on medical breakthroughs to cure diseases, prevent the spread of viruses, and create technology that can change how people are able to interact with the world. However, if animals must be used in research in the meantime, their lives and experiences should be as vital and naturalistic as possible. We will always strive to surpass the industry standard and never stop asking ourselves: “Can we do better for the animals?”, and never forget it is a privilege to work with animals in research. It is our responsibility as caretakers to ensure that their experience is as peaceful and frankly, as joyful as possible.”
Neuralink’s complete statement is available here.
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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
