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Tesla’s health clinic surgeon explains practice amid Reveal’s new allegations
Last Monday, an expose was published accusing Tesla of intentionally ignoring workers’ injuries. Citing former employees and a physician assistant who briefly worked in the company’s health clinic at the Fremont factory, Reveal, a publication that prides itself with its investigative reporting, accused Tesla of withholding medical care to its workers, to minimize how many injuries the company includes in its official records.
The new expose is not the first time Reveal trained its sights on the electric car maker. Earlier this year, the publication, based on accounts from former employees, accused Tesla of misreporting injury rates and ignoring safety concerns due to the whims of executives like Elon Musk. The publication’s allegations ultimately resulted in an investigation by the CAL-OSHA, which lasted four months. As noted by VP for Environmental, Health and Safety (EHS) Laurie Shelby during the third quarter earnings call and in a following blog post in Tesla’s official website, the CAL-OSHA investigation found no misreporting on Tesla’s part. The CAL-OSHA did find one safety issue and one record-keeping error during its four month-long investigation, in the form of an extension cord that was categorized as a trip hazard and an injury log that had an incorrect date.
Apart from doubling down on previous allegations — such as Tesla’s factories lacking hazard signs due to Elon Musk’s dislike of the color yellow — Reveal‘s new expose, written by journalist Will Evans, related several accounts of workers being denied proper medical care. One such instance involved a worker who severed the top of a finger being sent to the emergency room in a Lyft, as well as an employee who was asked to report to work even after being injured in the Model X line. The publication also alleged that Tesla forbids employees to call 911 without a doctor’s permission. Former PA Anna Watson, who worked in Tesla’s Fremont health clinic for about three weeks, noted that Tesla’s employees are paying the price for the company’s unsafe practices. Watson further alleged that she was terminated by Access Omnicare after raising safety concerns.
“The goal of the clinic was to keep as many patients off of the books as possible. The way they were implementing it was very out of control. Every company that I’ve worked at is motivated to keep things not recordable. But I’ve never seen anybody do it at the expense of treating the patient,” she said.
The publication’s new allegations have emerged as a dark cloud hovering over Tesla’s revamped workers’ safety programs, which have been at the forefront of the company as it continues to ramp its operations. Since hiring VP for Environmental, Health and Safety (EHS) Laurie Shelby last year, Tesla has actively rolled out new initiatives to raise the level of safety for its facilities’ amidst the company’s ever-increasing number of workers. Shelby, for one, has noted that Tesla remains focused on its efforts to become the safest car factory in the world.
Tesla is yet to respond to Reveal‘s new report, though a spokesperson from the company noted that Watson completed a total of five shifts before her employment was terminated. Dr. Basil Besh, an orthopedic surgeon and founder of Access Omnicare, has also issued a statement explaining the company’s practices when dealing with workers’ injuries. Besh, who currently serves as the chair of the American Academy of Orthopaedic Surgeons (AAOS) Board of Councilors (BOC), noted that the care that Access Omnicare gives to Tesla’s employees is the same care he gives to his personal clientele. The orthopedic surgeon noted that he had spoken to Reveal journalist Will Evans about the safety practices in the Fremont factory.
“I spent nearly one hour with Reveal detailing Tesla’s decision earlier this year to bring me and my medical team on site at Fremont, providing its employees with state-of-the-art occupational and musculoskeletal health care. I detailed our vision for exemplary patient care, and I gave specific examples of protocol improvements and subsequent successes in outcomes in only four short months, including accurate diagnoses and reducing needless delays for advanced testing and treatment. I patiently educated Will Evans on how Tesla allowed me to give the same care to Tesla employees that I do to my private patients including ones who are professional athletes, with the ability to get necessary testing and treatment in a timely manner without being hindered by an often cumbersome California Worker’s Compensation System that sometimes negatively effects injured workers.”
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Dr. Besh further noted that different types of injuries require different types of immediate care. The medical professional also denies that any malpractice is ongoing in the Tesla factory.
“I counseled Will on the difference between subjective complaints of pain, which cannot be proven and are often magnified, and objective signs found only on careful clinical examination by an experienced physician. I even mailed Will a copy of a relevant chapter from the American Medical Association Return to Work Guidelines and offered to make myself available for additional questions. Research and evidence-based medicine indicate that deconditioning injuries involving sore muscles should not be treated with inactivity as this only exacerbates the problem, but should instead be treated by proactive conditioning, ergonomic modifications, and supportive care. Not all patients in pain should be off work, at home, and on opioids. In fact, it is most often in these patients’ best interest to have supportive care that enhances their activity, their function, and their well-being.
“As a physician, my foremost obligation is to perform a careful history and physical examination, order additional tests when clinically indicated, make an accurate diagnosis, and deliver the absolute best care possible. If patients are injured, and continued work presents safety issues for the patient, myself and my fellow physicians prescribe the appropriate work restrictions. Any suggestion that myself or any of my medical team at AOC allow external factors to influence our medical care in any way is false and inaccurate.”
Ultimately, Dr. Besh also pointed out that ambulances are reserved for life or limb-threatening injuries. The surgeon did not provide a direct comment about former physician assistant Anna Watson, due to the latter being the subject of an ongoing investigation by the California Medical Board.
“Rather than deliver an informative and balanced piece of journalism, Reveal has instead chosen to hitch its wagon to Ms. Anna Watson, a provider with whom we severed ties after less than two weeks at our clinic and about whom I cannot provide any additional comment as she is currently the subject of an investigation by the California Medical Board. Instead of highlighting the tremendous progress being made in both patient safety and patient care at Tesla, this report uses poor sourcing to tell a story consistent with a predetermined agenda,” Dr. Besh stated.
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Investor's Corner
SpaceX and Nvidia team up on Musk’s orbital AI bet
SpaceX revealed a new Nvidia satellite partnership, then Musk pledged an exclusive Nvidia hardware commitment.
SpaceX and Nvidia are now working together on the hardware that will power Musk’s orbital data center ambitions. SpaceX announced on X on Tuesday that it is partnering with Nvidia to design the compute payload for Starmind AI1, the first satellite in a planned constellation built to run AI workloads directly in orbit. Each Starmind satellite will carry Nvidia’s Rubin GPUs and Vera CPUs, according to the post, which included renderings of the payload design.
The announcement landed hours before SpaceX’s first earnings call as a public company, where Musk went further, saying the company has committed to building its AI infrastructure exclusively on Nvidia hardware. “We think the Vera Rubin architecture is the best architecture. We think it’s the best AI computer, and we greatly value our close cooperation and partnership on many levels with Nvidia,” Musk told investors on the call,. “So we’re exclusive to Nvidia.”
Musk said SpaceX plans to deploy Nvidia’s Vera Rubin NVL72 rackscale system, codenamed Kyber, both on the ground and in space. He set a target of 2 gigawatts of compute capacity online by the end of this year, scaling to roughly 10 gigawatts by the end of 2027.
SpaceX’s newest Starmind will make earth data centers obsolete
Starmind has been in development since Musk confirmed the name in June, following an xAI trademark filing that tipped off the project before SpaceX made it official. The idea is massive in scope and instead of moving data down to ground based servers, satellites equipped with onboard processors and large solar arrays would compute AI workloads in orbit and beam results back to Earth. SpaceX has already filed with the FCC for a constellation of up to one million satellites to support the effort, citing constant solar power and the absence of zoning restrictions as advantages over terrestrial data centers.
The Nvidia exclusivity marks a shift in tone from just two weeks ago, when Musk was busy knocking down a report that SpaceX had ordered $52 billion worth of Nvidia GPUs through Foxconn, calling it fake news at the time. The dollar figure in that rumor may have been wrong, but the underlying direction seems correct. SpaceX’s AI division already leases Colossus compute capacity to Anthropic and Google, and Tuesday’s earnings report showed AI revenue climbing sharply as those deals ramp up.
Nvidia shares rose roughly 3% in Tuesday trading on the news, while SpaceX stock climbed nearly 9% during the day before giving back gains after hours as investors digested the earnings report’s capital spending figures.
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SpaceX (NASDAQ: SPCX) reported a beat in revenues and EBITDA in its first earnings call report while also minimizing losses as its business continues to gain momentum.
After its IPO in July, SpaceX saw some tough losses on Wall Street due to a major selloff after a delay in its 13th Starship test flight. The ship launched later that week and completed what was arguably the most successful IFT operation in the Starship program’s history.
Nevertheless, the company is continuing on and reported some encouraging financials while also promoting what appears to be a robust outlook moving forward in its Space, AI, and Connectivity divisions.
SpaceX to report first-ever earnings today: here’s what to expect
Earnings Results
- Revenues: $7.8 billion reported vs. $6.7 billion expected
- Adjusted EBITDA: $3.5 billion vs. $2 billion expected
- Net loss of $541 million, an improvement of $467 million from net loss of $1.0 billion
Additionally, CFO Bret Johnsen had these comments:
“2026 has been a momentous year so far, and the second quarter demonstrated the true power of SpaceX. Revenue growth accelerated across all our business segments and we delivered strong operating leverage, with significant margin expansion led by our new AI compute agreements. Our unparalleled leadership in launch, Starlink subscriber growth, new enterprise and government partnerships, and best-in-class AI infrastructure underscore our ability to drive meaningful scale and deliver attractive returns. As a newly public company, we are delighted to welcome our broad base of shareholders and bondholders. We ended the second quarter with $100 billion of cash, cash equivalents, and marketable securities, and $47.5 billion in backlog. This financial strength gives us substantial capacity to invest in Starship, Starlink Broadband and Mobile satellites, and our AI platform, while maintaining a disciplined long-term capital allocation framework.”
Space Business Highlights
SpaceX shared some of its biggest Space Business Highlights for Q2:
- Space revenues grew 55% sequentially and 29% year-over-year to $962 million, driven by a higher number of large customer launches and a favorable customer shift compared to the prior year
- Total costs and expenses for the Space segment were up by $389 million year-over-year, as we continued to accelerate R&D investments in our Starship program, which we believe will reduce the cost to orbit by 99% or more relative to the historical average, and unlock significant revenue potential across all business segments
- Leading launch provider for the world with 78 launches and 1,041 metric tons of mass to orbit deployed over the six months ended June 30, 2026, primarily allocated to Connectivity for the deployment of our Starlink constellation
- Starship V3 development continued to advance towards full and rapid reusability:
- Completed Starship V3’s first suborbital mission in May, Flight 12, which achieved a successful lift off from our new Starbase pad, a precision landing of Starship’s upper stage, and deployment of modified V2 Starlink satellites
- Subsequent to the second quarter, completed Starship Flight 13 in July, which achieved all flight objectives including deploying 20 production V3 satellites, demonstrating in-space relight of a Raptor engine, and executing the softest ever splashdown of Starship, providing critical views of an intact heatshield
SpaceX will report its earnings today at 4:30 P.M. EDT.
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Elon Musk issued a second pointed warning to SpaceX short sellers on Tuesday, just hours before the company was set to release its first quarterly earnings as a publicly traded firm. Responding to a report highlighting elevated short interest, Musk wrote on X: “I try to warn them, but they just double down …”
The comment came as data from S3 Partners showed roughly 95 percent of available SPCX shares to borrow were on loan, translating to about 34 percent short interest as a percentage of the float. The stock has traded under pressure since its record-breaking IPO in June 2026, declining significantly from early peaks.
I try to warn them, but they just double down … 🤷♂️
— Elon Musk (@elonmusk) August 4, 2026
This marks the second such message from Musk in under three weeks.
On July 17, amid post-IPO volatility, he stated: “The survival probability of firms who maintain a significant short position in SpaceX over time is very low.” At that time, SPCX had fallen roughly 30 percent from its peak above a $2.6 trillion valuation, with short sellers reportedly realizing gains of about $8.7 billion.
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Musk’s warning aligned with optimistic analyses projecting that Starship-driven cost reductions could enable a multi-trillion-dollar space economy through applications such as orbital solar power, asteroid mining, data centers, and Mars-related projects, positioning SpaceX as critical infrastructure.
SpaceX is scheduled to report second-quarter results after the market close later today, followed by a webcast. Analysts anticipate revenue near $6.9 billion, reflecting growth in Starlink, launch services, and AI-related segments. The earnings release precedes a major lockup expiration on August 6 that could free hundreds of millions of insider shares.
Musk has a long track record of confronting short sellers, particularly regarding Tesla, where he has argued that persistent bearish positions underestimate transformative technologies. Critics view his optimism as overly ambitious given near-term stock fluctuations, while supporters see temporary dips as opportunities in a longer-term expansion of the space economy.
As SpaceX opens its books to public scrutiny for the first time, the high short interest and Musk’s repeated cautions set the stage for heightened market attention on the results and management’s commentary.
SpaceX and Nvidia team up on Musk’s orbital AI bet
SpaceX reports beat in first earnings while minimizing losses
