News
NHTSA says your Tesla can’t be this quiet starting Sept., 2019
We at Teslarati are all in favor of making vehicles as safe as possible. Indeed, in our research and analysis of Teslas, we were proud early on in 2013 when the National Highway Traffic Safety Administration (NHTSA) awarded the Tesla Model S a 5-star safety rating, not just overall, but in every subcategory without exception. It was so safe, in fact, that the all-electric sedan broke the testing equipment at an independent commercial facility. Fast-forward to 2015. The Model X was the first SUV to be five-star in every category, according to Tesla CEO Elon Musk. It even won the prestigious Golden Steering Wheel (Das Goldene Lenkrad) award for best SUV this year.
Safety is important and should be primary to any driving situation. It should prevail over luxury features, style, and even comfort. However, a new NHTSA regulation that purports to target safety in its language is little more than a superficial gesture within a larger framework of driver, passenger, and pedestrian concerns.
Federal Motor Vehicle Safety Standard No. 141, which will begin on September 1, 2019, requires all newly manufactured hybrid and electric light-duty vehicles to make an audible noise at speeds below 19 mph. The sound requirement has been designed to help pedestrians who are blind, have low vision, cyclists, and other pedestrians to detect the presence, direction, and location of hybrids and EVs traveling at low speeds. At higher speeds, the sound alert will not be required because other factors, such as tire and wind noise, seem to provide adequate audible warning to pedestrians and will not be the subject of this regulation.
“We all depend on our senses to alert us to possible danger,” said U.S. Transportation Secretary Anthony Foxx. “With more, quieter hybrid and electrical cars on the road, the ability for all pedestrians to hear as well as see the cars becomes an important factor of reducing the risk of possible crashes and improving safety.”
Creating a social environment in which all individuals — especially those with disabilities, underrepresented groups, children, and the elderly — are physically and psychologically welcomed and safe is absolutely paramount to a healthy community. Manufacturers and drivers of hybrids and EVs do have a responsibility to contribute to such an environment.
Yet, clearly, we have a generation who has been accustomed to the sounds and smells of internal combustion engines. Wouldn’t driver and pedestrian education be a more efficacious way to ensure that hybrids and EVs do not pose a safety threat? Daniel Kahneman’s (2013) work, Thinking Fast and Slow, suggests that innovative products require a higher degree of learning than existing products. Education to help EV drivers and individuals who do not have personal access to hybrids and EVS, thus, who have not built in conscious mechanisms toward the awareness of hybrids and EVs in traffic, would have longer lasting and more permanent results.
Making the case for educating pedestrians
As the general population increases its awareness of the risks of pollution to both health and the environment, the internal combustion engine has become less desirable. As a result, battery-powered, fuel-cell electric, and hybrid vehicles are technologically viable alternatives to the internal combustion engine. And they’re beginning to take on a significant segment of the U.S. vehicle market.
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Essentially, an internal combustion engine works like a cannon. The sound that results is formidable and part of our collective U.S. psyche. It is ingrained in our psychological expectations of what an engine should be. Electric motors, however, make very little noise compared with an internal combustion engine. Research on the safety implications of quiet electric vehicles has mostly focused on pedestrians’ acoustic perception of EVs and suggests that EVs compromise traffic safety. However, Cocran & Krems‘ 2013 research determined that, based on gained individual experience, drivers adjust their evaluation of noise-related hazards. Some statistical observation studies in literature indicate that hybrid or EV drivers intend to be more careful, less risk takers in traffic (Horswill and Coster 2002). Thus, it makes sense to increase the awareness factors for everyone — EV drivers and pedestrians — to create more robust safe traffic situations when EVs are added to the vehicle mix.
Adding to the sound mix
Principles to increase awareness of hybrids and EVs have generally focused on alerts, or sounds that indicate the presence of an EV. Other principles, such as orientation mechanisms, which make it possible to determine where the vehicle is located, roughly how fast it is going, and whether it is moving toward or away from the listener, extend beyond mere white or overt noises.
Education transcends any of these physical additions to a hybrid or EV. Hybrid and EV drivers as well as pedestrians should be exposed to new conceptual thinking about the place of EVs in traffic situations. Alongside the new federal safety standard that requires low speed noise, hybrid and EV automakers can build in specific educational materials to prepare their consumer base for new driving situations, which will continue to add safety awareness. With access to multiple new technologies, drivers could have multimodal educational opportunities.
- Audio systems could provide periodic, random reminders to increase driver awareness of pedestrians and cyclists in slow speed situations.
- Automakers could require that drivers work through a series of interactive online tutorials that accentuate driver understanding of slow speed safety adaptations with hybrids and EVs.
- Traditional print manuals should include dedicated sections that address slow speed driver safety decision making.
- Before-driving checklists should include explicit instruction in slow speed situations and the possibility of pedestrian interactions.
Consumer safety groups can also assume responsibility for educating their constituents about new needs for pedestrian and cyclist awareness.
- Cyclist advocacy organizations can provide seminars to their members during events to increase strategies for hybrid and EV slow speed situations.
- Existing support groups for persons with visual impairment can add workshops about hybrid and EVs to empower them to anticipate potential slow speed traffic situations.
- Minimal training standards for service animals could include special animal recognition of hybrid and EVs.
- Traditional and highly respected elderly advocacy organizations like AARP could provide print and online materials to help a generation who grew up with internal combustion engines to accommodate strategies to recognize hybrids and EVs in traffic.
Yes, adoption and diffusion of new innovations can be a long-term, complicated process. Airbags, child safety features, exhaust gas hazard, seat belts, and driver assist technologies currently provide hybrid and EV drivers with a toolkit of pedestrian safety measures. But we want more than to prevent what NHTSA says is about 2,400 pedestrian injuries each year that occur during low speed hybrid or EV/ pedestrian interactions. We want to create a cultural climate in which a social vehicular knowledge base extends well beyond the internal combustion engine.
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.
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.
SpaceX’s next trillion dollar bet has nothing to do with rockets, Musk tells staff
Tesla has one big financial question to answer for investors: Morgan Stanley
