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Trevor Milton’s indictment should set precedent for other CEOs

(Photo: Isaac Sloan/Nikola Motor)

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This is a preview from our weekly newsletter. Each week I go ‘Beyond the News’ and handcraft a special edition that includes my thoughts on the biggest stories, why it matters, and how it could impact the future. 

Earlier this week, former Nikola CEO Trevor Milton was indicted on two counts of securities fraud and one count of wire fraud, after misleading investors about the financial condition and basically every facet of Nikola’s operation. The indictments come after months of silence from Milton, who has basically disappeared into thin air following his resigning as Nikola’s CEO. The announcement of Milton’s charges, which were carried out by the U.S. Attorney Southern District of New York’s office, will set precedent for CEOs moving forward, especially for those who have announced major breakthroughs in electric vehicle technology without releasing any relevant products.

For the last 13 years, Tesla has combated companies and automakers that have set forth a path to dethrone the electric car entity from its post as the best EV maker in the world. However, Tesla has never been even remotely challenged by an all-electric car company that has been established in recent memory. Most likely, this is due to Tesla’s domination of the electric vehicle sector in nearly every category, including battery tech, software, vehicle design, and autonomy.

Nikola founder Trevor Milton indicted on three counts of fraud

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This has not stopped CEOs of other automakers from making outlandish claims with their vehicles, and Milton was just one of many. Since the 2018 lawsuit that Nikola filed against Tesla for allegedly taking design ideas from the Nikola One and implementing them into the Tesla Semi, it seems Milton has been the only CEO to actually convince some people that their product is meaningful and groundbreaking, despite not having much of a product at all. Considering Nikola admittedly misled shareholders about the capabilities of its all-electric commercial vehicle, there should be a hint to the CEOs of the companies that do and will exist in the future: don’t lie about your product, and don’t incite shareholders to believe something that is true.

This point should be common sense and should be evidently clear, but it is something that should set other CEOs of emerging automakers to tread carefully with their words and claims. Taking advantage of a highly marketable and quickly growing EV sector requires a strategic entrance into the market. Lying about the capabilities of what your vehicles might be able to do in the future, simply is not a great move. Over time, things may be established and successful with the dedication and hard work of teams of engineers and others. But until that day, it may be best to stop claiming things about the product, and simply release some kind of evidence that the company is not “an intricate fraud,” as Hindenburg Research called it.

When companies can effectively manufacture a product worth value and prove to people, especially shareholders, that they are for real about entering the sector, there is a significant amount of respect that heads toward the entity that came through. Skepticism is a commonly displayed trait, especially in the electric vehicle sector, because so many companies have come and gone, setting up their own expectations that are quite lofty, only to come short. This inevitably leaves many EV enthusiasts, especially Tesla owners and fans, feeling let down for what could eventually come.

Without a doubt, there will be some people that will inevitably take advantage of excited investors who are passionate about the possibility of sustainable energy and transportation. Based on the allegations set forth by the U.S. Department of Justice against Milton, he is one of those individuals and this statement could be proven in a federal courtroom in the coming months. “The one thing fraudsters have in common – they’re liars, cheaters, and thieves,” Inspector-in-Charge Phillip R. Bartlett said. He added that if an investment opportunity seems too good to be true, it probably is.

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I use this newsletter to share my thoughts on what is going on in the Tesla world. If you want to talk to me directly, you can email me or reach me on Twitter. I don’t bite, be sure to reach out!

-Joey

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Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Elon Musk

The Boring Company clears final Nashville hurdle: Music City loop is full speed ahead

The Boring Company has cleared its final Nashville hurdles, putting the Music City Loop on track for 2026.

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The Boring Company has cleared one of its most significant regulatory milestones yet, securing a key easement from the Music City Center in Nashville just days ago, the latest in a series of approvals that have pushed the Music City Loop project firmly into construction reality.

On March 24, 2026, the Convention Center Authority voted to grant The Boring Company access to an easement along the west side of the Music City Center property, allowing tunneling beneath the privately owned venue. The move follows a unanimous 7-0 vote by the Metro Nashville Airport Authority on February 18, and a joint state and federal approval from the Tennessee Department of Transportation and the Federal Highway Administration on February 25. Together, these green lights have cleared the path for a roughly 10-mile underground tunnel connecting downtown Nashville to Nashville International Airport, with potential extensions into midtown along West End Avenue.

Music City Loop could highlight The Boring Company’s real disruption

Nashville was selected by The Boring Company largely because of its rapid population growth and the strain that growth has placed on surface infrastructure. Traffic has become a persistent problem for residents, convention visitors, and airport travelers alike. The Music City Loop promises an approximately 8-minute underground transit time between downtown and the Nashville International Airport (BNA), removing thousands of vehicles from surface roads daily while operating as a fully electric, zero-emissions system at no cost to taxpayers.

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The project fits squarely within a broader vision Musk has championed for years. In responding to a breakdown of the Loop’s construction costs, Musk posted on X: “Tunnels are so underrated.” The comment reflected a longstanding belief that underground transit represents one of the most cost-effective and scalable infrastructure solutions available. The Boring Company has claimed it can build 13 miles of twin tunnels in Nashville for between $240 million and $300 million total, a fraction of what comparable projects cost elsewhere in the country.

The Las Vegas Loop, The Boring Company’s first operational system, has served as a proof of concept. During the CONEXPO trade show in March 2026, the Vegas Loop transported approximately 82,000 passengers over five days at the Las Vegas Convention Center, demonstrating the system’s capacity during large-scale events. Nashville draws millions of convention visitors and tourists each year, and local business leaders have pointed to that same capacity as a major draw for supporting the project.

The Music City Loop was first announced in July 2025. Construction began within hours of the February 25 state approval, with The Boring Company’s Prufrock tunneling machine already in the ground the same evening. The first operational segment is targeted for late 2026, with the full route expected to be complete by 2029. The project represents one of the largest privately funded infrastructure efforts currently underway in the United States.

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Elon Musk

Elon Musk demands Delaware Judge recuse herself after ‘support’ post celebrating $2B court loss

A banner on the post read “Katie McCormick supports this,” using LinkedIn’s heart-in-hand “support” icon, an endorsement stronger than a simple “like.” Musk’s lawyers argue the action creates “a perception of bias against Mr. Musk,” warranting immediate recusal to preserve judicial impartiality.

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Ministério Das Comunicações, CC BY 2.0 , via Wikimedia Commons

Tesla CEO Elon Musk’s legal team has filed a motion demanding that Delaware Chancellor Kathaleen McCormick disqualify herself from an ongoing high-stakes Tesla shareholder lawsuit.

The filing, submitted March 25, cites an apparent LinkedIn “support” reaction from McCormick’s account to a post celebrating a $2 billion jury verdict against Musk in a separate California securities-fraud case.

The move escalates long-simmering tensions between Musk, Tesla, and the Delaware judiciary, where McCormick previously presided over the landmark challenge to Musk’s record $56 billion 2018 compensation package.

Delaware Supreme Court reinstates Elon Musk’s 2018 Tesla CEO pay package

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The LinkedIn post was written by Harry Plotkin, a Southern California jury consultant who assisted the plaintiffs who sued Musk over 2022 tweets about his Twitter acquisition. Plotkin praised the trial team for “standing up for the little guy against the richest man in the world.”

The New York Post initially reported the story.

A banner on the post read “Katie McCormick supports this,” using LinkedIn’s heart-in-hand “support” icon, an endorsement stronger than a simple “like.” Musk’s lawyers argue the action creates “a perception of bias against Mr. Musk,” warranting immediate recusal to preserve judicial impartiality.

McCormick swiftly denied intentional endorsement. In a letter to attorneys, she stated she was unaware of the interaction until LinkedIn notified her. She wrote:

“I either did not click the ‘support’ icon at all, or I did so accidentally. I do not believe that I did it accidentally.”

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The chancellor maintains the reaction was inadvertent, but critics, including Musk allies, call the explanation implausible given the platform’s deliberate interface.

McCormick’s central role in the Tesla pay-package litigation underscores the stakes. In Tornetta v. Musk, in January 2024, she ruled the 2018 performance-based stock-option grant, potentially worth $56 billion at the time and now valued far higher, was invalid.

The package consisted of 12 tranches of options, each vesting only after Tesla achieved ambitious market-cap and operational milestones. McCormick found Musk exercised “transaction-specific control” over Tesla as a controlling stockholder, the board lacked sufficient independence, and proxy disclosures to shareholders were materially deficient.

Applying the entire-fairness standard, she concluded defendants failed to prove the deal was fair in process or price and ordered full rescission, an “unfathomable” remedy she described as necessary to deter fiduciary breaches.

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After the ruling, Tesla shareholders ratified the package a second time in June 2024. McCormick rejected that ratification in December 2024, holding that post-trial votes could not cure defects.

Tesla appealed. On December 19 of last year, the Delaware Supreme Court unanimously reversed the rescission remedy while largely leaving McCormick’s liability findings intact. The high court deemed total unwinding inequitable and impractical, restoring the package but awarding the plaintiff only nominal $1 damages plus reduced attorneys’ fees. Musk ultimately received the full award.

The current recusal motion arises in yet another Tesla derivative suit before McCormick. Legal observers say granting it could signal heightened scrutiny of judicial social-media activity; denial might reinforce perceptions of an insular Delaware bench.

Broader fallout includes accelerated corporate migration out of Delaware, Musk himself moved Tesla’s incorporation to Texas after the first ruling, and renewed debate over whether the state’s specialized courts remain the gold standard for corporate governance disputes.

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A decision is expected soon; whichever way it lands, the episode highlights the fragile balance between judicial independence and public confidence in high-profile litigation.

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Tesla Cybercab spotted next to Model Y shows size comparison

The Model Y is Tesla’s most-popular vehicle and has been atop the world’s best-selling rankings for the last three years. The Cybercab, while yet to be released, could potentially surpass the Model Y due to its planned accessible price, potential for passive income for owners, and focus on autonomy.

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Credit: Joe Tegtmeyer | X

The Tesla Cybercab and Tesla Model Y are perhaps two of the company’s most-discussed vehicles, and although they are geared toward different things, a recent image of the two shows a side-by-side size comparison and how they stack up dimensionally.

The Model Y is Tesla’s most-popular vehicle and has been atop the world’s best-selling rankings for the last three years. The Cybercab, while yet to be released, could potentially surpass the Model Y due to its planned accessible price, potential for passive income for owners, and focus on autonomy.

Geared as a ride-sharing vehicle, it only has two seats. However, the car will be responsible for hauling two people around to various destinations completely autonomously. How they differ in terms of size is striking.

Tesla Cybercab includes this small but significant feature

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In a new aerial image shared by drone operator and Gigafactory Texas observer Joe Tegtmeyer, the two vehicles were seen side by side, offering perhaps the first clear look at how they differ in size.

Dimensionally, the differences are striking. The Model Y stretches roughly 188 inches long, 75.6 inches wide, excluding its mirrors, and stands 64 inches tall on a 113.8-inch wheelbase. The Cybercab measures approximately 175 inches in length, about a foot shorter, and just 63 inches wide.

That narrower stance gives the Cybercab a dramatically more compact silhouette, making it easier to maneuver in tight urban environments and park in standard spaces that would feel cramped for the Model Y. Height is also lower on the Cybercab, contributing to its sleek, coupe-like profile versus the Model Y’s taller crossover shape.

Visually, the contrast is unmistakable. The Model Y presents as a family-friendly SUV with conventional doors, a prominent hood, and a spacious glass roof.

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The Cybercab eliminates the steering wheel and pedals entirely, creating a clean, futuristic cabin that feels more lounge than cockpit.

Its doors open in a distinctive, wide-swinging motion, and the body features smoother, more aerodynamic lines optimized for autonomy. Parked beside a Model Y, the Cybercab appears almost toy-like in width and length, yet its low-slung stance and minimalist design emphasize agility over bulk.

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Cargo capacity tells another part of the story. The Model Y offers generous real-world utility: 4.1 cubic feet in the front trunk and 30.2 cubic feet behind the rear seats, expanding to 72 cubic feet with the second row folded flat.

It comfortably swallows groceries, luggage, or sports equipment for five passengers. The Cybercab, designed for two riders, trades that volume for targeted efficiency.

It features a rear hatch with enough space for two carry-on suitcases and personal items, plenty for the typical robotaxi trip, while maintaining impressive legroom and headroom for its occupants.

In short, the Model Y prioritizes versatility and family hauling with its larger footprint and abundant storage. The Cybercab sacrifices size for simplicity, cost, and urban nimbleness.

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At roughly 12 inches shorter and 12 inches narrower, it embodies Tesla’s vision for scalable, affordable autonomy: smaller on the outside, smarter inside, and ready to redefine how we move through cities.

The Cybercab and Model Y both will contribute to Tesla’s fully autonomous future. However, the size comparison gives a good look into how the vehicles are the same, and how they differ, and what riders should anticipate as the Cybercab enters production in the coming weeks.

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