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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.”
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.
In a striking revelation that underscores the lucrative crossover between Big Tech and space exploration, Alphabet Inc., Google’s parent company, disclosed a massive $94.1 billion equity stake in SpaceX following the rocket company’s blockbuster initial public offering earlier this year.
The disclosure came in Alphabet’s quarterly filing, marking the first time the long-held private investment has been publicly valued at market prices. Google was an early backer, investing alongside Fidelity in 2015 with roughly $500-900 million at a time when SpaceX was valued around $12 billion.
That bet has delivered extraordinary returns, roughly a hundredfold, transforming a strategic play on satellite internet and launch capabilities into one of Alphabet’s largest assets.
Google, $GOOGL, has said they hold $94 billion in SpaceX, $SPCX, shares after IPO.
— unusual_whales (@unusual_whales) July 23, 2026
Of the total holding, approximately $80 billion remains subject to short-term post-IPO lockup restrictions, preventing near-term sales. An additional $14.1 billion faces longer-term restrictions, extending into the third quarter of 2027. This structure limits immediate liquidity but protects against market volatility as SpaceX transitions into public trading.
The SpaceX position contributed significantly to gains in Alphabet’s broader investment portfolio, which also includes a major stake in AI leader Anthropic. Combined, these holdings helped drive nearly $100 billion in investment gains during the second quarter, providing a substantial boost to net income amid ongoing AI spending pressures.
Analysts view the disclosure as validation of Alphabet’s venture strategy beyond its core search and cloud businesses. The investment aligns with deeper ties, including reported multi-billion-dollar deals for AI computing capacity on SpaceX infrastructure. As SpaceX advances Starship flights, Starlink expansion, and ambitious Mars goals under Elon Musk, Google’s stake positions it to benefit from the commercialization of space.
For Alphabet, the windfall highlights how patient, forward-looking bets in transformative sectors can yield outsized rewards. While lockups temper short-term impact, the holding cements SpaceX as a cornerstone of Alphabet’s diversified portfolio in an era where aerospace, AI, and connectivity increasingly intersect. Investors will watch closely as restrictions lift and SpaceX’s public performance unfolds.
In early 2026, Tesla made a bold strategic pivot: it largely eliminated the option to purchase Full Self-Driving (FSD) software outright and shifted to a subscription-only model. The change, effective around mid-February, ended the one-time fee that had previously ranged as high as $15,000 and later dropped to $8,000. Instead, customers would access FSD (Supervised) for $99 per month in the U.S.
At the time, skeptics questioned whether locking customers into recurring payments would hurt adoption or alienate buyers who preferred ownership of the feature. Tesla bet that a lower barrier to entry, seamless integration at purchase, and the ability to cancel at any time would drive higher uptake.
The results from Q2 2026 speak for themselves: the decision has been a resounding success, delivering the largest quarterly growth in FSD subscriptions in the company’s history.
Tesla FSD subscriptions went up 56% in Q2 2026 to 1.48 million, an increase of 200,000 from Q1 2026.
Tesla added more FSD subscribers in Q2 than in any quarter in its history. pic.twitter.com/jTciTD2JqW
— Sawyer Merritt (@SawyerMerritt) July 22, 2026
According to Tesla’s Q2 shareholder update, active FSD subscriptions reached 1.48 million globally by the end of June 2026. That represents a 56 percent increase year-over-year and a 15.6 percent jump from the prior quarter. Tesla added roughly 200,000 new subscriptions in the period alone—the biggest single-quarter gain on record.
North America led the charge, with more than 55 percent of new vehicle deliveries including an FSD subscription at the time of purchase, a record attach rate for the region.
Tesla explicitly noted that “more customers [are] opting for subscription at the time of vehicle purchase,” crediting the model shift and prominent placement of the option in the ordering process. Subscriptions now contribute meaningfully to ancillary revenue, helping offset pressure elsewhere in the business.
The financial upside is substantial: At $99 per month, 1.48 million active subscriptions generate approximately $146.5 million in monthly recurring revenue. Over a full year, that equates to roughly $1.76 billion in annualized recurring revenue (ARR) from FSD subscriptions alone, assuming steady retention and no major pricing changes.
These figures represent pure, high-margin software revenue. Unlike vehicle sales, which carry production costs, warranty obligations, and supply-chain risks, FSD subscriptions flow largely to the bottom line once the software is developed and deployed over-the-air.
Tesla does not break out exact FSD subscription revenue in its filings (it sits within “Services and Other”), but the category grew 50 percent year-over-year in Q2, with executives highlighting subscriptions as a key driver.
The subscription model offers several structural advantages. It lowers the upfront cost of a new Tesla, potentially broadening the buyer pool and supporting vehicle demand, especially important amid fluctuating EV market conditions. It creates a predictable revenue stream that compounds as the fleet grows and more owners try (and stick with) the software.
Legacy one-time purchasers still exist, but new growth is overwhelmingly subscription-based following the February cutoff.
Early data also suggests improving retention and satisfaction, as well. Tesla has rolled out iterative FSD updates, including v14 features, and expanded availability to additional markets. Recent regulatory approvals in parts of Europe have further boosted interest, with owners in newly enabled countries eager to activate the software they had been waiting for.
FSD is still supervised; regulatory hurdles for true unsupervised autonomy persist in many regions, including the United States, and competition in advanced driver-assistance systems is intensifying. Yet the Q2 numbers validate Tesla’s bet: by removing the large upfront commitment and making FSD accessible via subscription, the company has accelerated adoption faster than many anticipated.
What began as a controversial switch-up has become a clear win. With nearly 1.5 million subscribers, record attach rates, and nearly $1.8 billion in potential annual recurring revenue already in view, Tesla’s FSD business is transitioning from a promised future to a tangible, fast-growing profit engine.
If the momentum continues, and especially if unsupervised capabilities unlock robotaxi opportunities, the subscription flywheel could become one of the most valuable assets in Tesla’s portfolio.
Tesla Robotaxi is among its biggest projects currently, but many have been quick to point out the fact that the company has definitely been slow to expand its fleet.
However, there is definitely a method to that madness. CEO Elon Musk answered several concerns during last night’s quarterly earnings call that some might have about that slow rollout of the Robotaxi suite, maintaining the company’s narrative on prioritizing safety and wanting to avoid injuries to anyone, including animals.
Musk said:
“With Robotaxi, our goals are very ambitious for Robotaxi, but we do need to be cautious about causing any accidents or causing any harm to anyone. Although there are, I think, 30,000 to 40,000 automotive deaths per year in the U.S. alone, most of those do not generate any press or maybe, you never really read about almost any of those. If we injure even one person, it’ll be worldwide headline news, and regulators will immediately clamp down on our activities.
We don’t want to injure anyone. We’re going as fast as humanly possible in scaling Robotaxi, but while trying to ensure that we do not harm anyone at all, and ideally do not even run over a pet. That’s really the constraint is we want to grow as fast as possible with Robotaxi without harm to anyone.”
Tesla has maintained an exemplary safety record with its Robotaxi suite, according to internal data. VP of AI, Ashok Elluswamy, said that the Robotaxi suite has driven more than 380,000 miles unsupervised without any incidents.
0 notable incidents across over 380,000 miles traveled by Robotaxi
— Tesla (@Tesla) July 22, 2026
Analyst Colin Langan of Bank of America also pushed Tesla executives for answers regarding the company’s decision to add cities across several states with dozens of vehicles “as opposed to hundreds.”
Elluswamy said there’s a bigger advantage to do it the way Tesla has been because it ensures that its software stack “is a very general one:”
“The reason we have been expanding across different cities instead of just doubling down on a single city, is that we want to make sure that our stack is a very general one. It is a general one. We just want to both prove to ourselves and to other folks that it is working across a lot of different cities without too much effort per city. That’s what we see internally.”
In the past, we have written about Tesla’s decision to be incredibly conservative with its Robotaxi rollout, especially with the incredibly small fleet size compared to competitors. However, there really is not a price anyone can put on safety for those utilizing the platform or pedestrians, so what Tesla is doing is justified.
A year into the Robotaxi program being active, Tesla has made major strides, but many investors and fans would like to see the fleet expand as quickly as the program has to other cities and states.
Google’s massive stake in SpaceX will shock you
Tesla’s switch-up on selling Full Self-Driving has paid off big time
