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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.
Elon Musk
Elon Musk just confirmed the Tesla and SpaceX merger step everyone was waiting for
Tesla and SpaceX formed special committees to weigh a merger, and Elon Musk supports it.
Elon Musk confirmed Tuesday that Tesla and SpaceX have each formed special committees of independent directors to study a possible merger, the first formal step toward combining the two companies after months of speculation.
Musk made the disclosure during SpaceX’s third quarter earnings call. “Both SpaceX and Tesla have formed special committees to discuss this idea at the request of shareholders,” he said. “Because I’m a conflicted party, I can’t actually be in the discussions of the special committees.” He described the setup as “an odd kabuki dance where two groups of people are talking and I can’t be in the conversation.”
Musk did not hide where he stands. “Do I think it would be a good idea? Yes,” he said, pointing to shared work on super intelligence software, chip design, the Terafab facility in Austin, robotics, mass to orbit and connectivity. “I do think there’s a lot of merit to combining the companies as we are pretty much in the super intelligence singularity.”
He also tried to cool expectations. The committees have not agreed on terms for any transaction, and Musk said assuming a merger is a certainty “would be overstating it.” Any deal would go to shareholders, and on the Tesla side it would need approval from 50 percent of all outstanding shares, not just the shares that are voted. Musk called that “quite a high hurdle.”
That bar has tripped Tesla up before. The company’s 2025 attempt to declassify its board won support from only 39.4 percent of outstanding shares and failed. Musk’s own voting stake sits near 20 percent after he exercised his 2018 options in June, so a deal would need broad backing from institutions and a retail base that often leaves votes uncast.
Timing is another open question. Tesla filed its proxy statement Monday for its December 3 annual meeting, and the ballot has only three items: director elections for Musk, Robyn Denholm and JB Straubel, a say on pay vote and auditor ratification. Barclays analyst Dan Levy had argued that an announcement would need to land by late October or early November to make the annual meeting, as Teslarati noted in its SpaceX earnings preview. With no terms agreed, any vote would likely require its own special meeting.
Elon Musk gives his most telling Tesla-SpaceX merger conversation yet
Musk has been edging toward this for weeks. At the All-In Summit in September, he asked “who can imagine what action one might take when there’s so much close collaboration,” Teslarati reported. Last week’s Roadster unveil, built around SpaceX derived cold gas thrusters, pushed the talk further. The two companies already share the Terafab chip project, and Tesla holds a small SpaceX stake that came from its earlier investment in xAI.
SpaceX brought strong numbers to the conversation. It reported Q3 revenue of $14.58 billion, up 161 percent year over year, with its Super Intelligence segment now its largest at $7.56 billion. A higher SpaceX valuation would shape any exchange ratio Tesla holders are offered.
Tesla reports its own third quarter results after the close on Wednesday, October 21. Investors had already ranked merger timing among the top retail questions for SpaceX’s call, and the committees will almost certainly come up again on Tesla’s.
SpaceX reported its third-quarter 2026 financial results on October 20, posting the company’s first solidly profitable quarter since going public earlier in the year under the ticker $SPCX.
Revenue reached $14.58 billion, up 161 percent year-over-year from $5.6 billion, and well ahead of consensus estimates in the $12.7 to $12.9 billion range. The results highlight a rapid shift in SpaceX’s center of gravity toward artificial intelligence/super intelligence, while Starlink and traditional space operations continue to show robust progress.
Here are the key financial results for the quarter:
- Revenue of $14.58 billion (+161% YoY)
- Adjusted EBITDA of $8.8 billion (+306% YoY)
- GAAP net income of $4.4 billion (versus a $1.1 billion net loss in the prior-year quarter)
- Adjusted EPS of approximately $0.35 (versus roughly $0.13–0.16 expected)
- Income from operations of $2.8 billion
The AI/SI segment generated $7.56 billion in revenue, an 830 percent year-over-year increase, making it the company’s largest segment for the first time. Growth was primarily driven by the activation of major cloud services agreements, the integration of Cursor (acquired earlier in 2026), and rising usage of Grok models and the newly introduced Grok Bot personal agent.
🚨 SpaceX just reported earnings! Here are some highlights:
Financial:
Revenue $14.58B (+161% YoY) vs. consensus ~$12.7–12.9B
Adjusted EBITDA $8.8B (+306% YoY)
GAAP net income $4.4B (vs. prior-year loss; first solidly profitable quarter post-IPO)
Adjusted EPS ~$0.35 vs. ~$0.13–0.16 expectedSegments:
Super Intelligence (SI, formerly AI): $7.56B (+830% YoY) — now the largest segment, driven by cloud contracts, Cursor, and Grok.
Connectivity (Starlink): $5.25B (+69% YoY).
Space: $1.77B.Other highlights:
Starlink subscribers: 13.6M (+89% YoY).
Nameplate compute: 1.7 GW.
Capex: $19.6B (majority AI infrastructure).
Cash & marketable securities: ~$90B.
First revenue-generating Starship mission (26 V3 Starlink satellites, ~10× Falcon 9 downlink capacity per launch).— TESLARATI (@Teslarati) October 20, 2026
SI adjusted EBITDA reached $5 billion, and nameplate compute capacity stood at 1.7 GW at quarter-end, up from 1.4 GW in June and 0.6 GW a year earlier. Capital expenditures totaled $19.6 billion, with the majority allocated to AI infrastructure, including continued expansion of the Colossus facilities.
The Connectivity segment, which primarily surrounds Starlink, produced $5.25 billion in revenue, a 69 percent year-over-year and 22 percent sequentially. These are pleasant results to see and expected, considering how many airlines have adopted Starlink over the past year.
Starlink consumer subscribers reached 13.6 million, an 89 percent increase from the prior year, and a sequential gain of 1.6 million. Consumer average revenue per user improved to $69. Meanwhile, Enterprise and Government revenue also grew strongly, and Starlink is now installed on more than 3,800 aircraft, making internet more accessible and better performing than previous options.
The Space segment also performed well and contributed $1.77 billion in revenue, up 6 percent year-over-year and 84 percent sequentially. A major milestone was the successful first revenue-generating Starship mission (Flight 14), which deployed 26 V3 Starlink satellites. Those satellites added roughly 10 times the downlink capacity of a typical Falcon 9 Starlink launch.
SpaceX completed 12 customer launches during the quarter, including NASA’s Nancy Grace Roman Space Telescope mission, and continued to grow its backlog of crewed, national security, and commercial flights.
CFO commentary noted that the combination of launch leadership, recurring Starlink revenue, and rapid SI expansion is producing meaningful operating leverage.
The company ended the quarter with roughly $90 billion in cash and marketable securities, providing substantial resources for ongoing investment while targeting an investment-grade balance sheet. Sequential revenue nearly doubled from the $7.81 billion reported in the second quarter, illustrating the pace of the AI-driven acceleration. Things are looking strong for SpaceX.
What’s incredibly striking is the fact that SI has grown to be larger than the rest of the company in such a short amount of time. CEO Elon Musk said on the earnings call that Grok Bot is the “fastest-growing product I’ve ever seen,” so it seems that it could be a true keystone of SpaceXSI over the next few years.
SpaceX (NASDAQ: SPCX) will report its second public earnings call today since its IPO earlier this year, and there are a few things we expect to hear about, as well as Wall Street analysts, who have already outlined their expectations for the call.
Wall Street analysts have a consensus of $12.72 billion in revenue and an earnings per share (EPS) of $0.13. These are broken down into three sectors: Space, Connectivity, and AI/SI, which are perceived in this way:
- Space: $1.41 billion
- Connectivity: $4.84 billion
- AI/SI: $6.47 billion
Other outlets cluster near $12.8 or $12.9 billion in revenue and $0.14 – $0.15 EPS. This implies a roughly 65 percent sequential growth from Q2’s $7.81 billion, driven mostly by AI/SI, with the first post-IPO positive EPS expected.
Here are the three things to watch for on the call:
AI Revenue Ramp and the $100B+ ARR target
AI is truly the swing factor for SpaceX, and analysts expect it to roughly double from Q2’s $2.56 billion and become about half of total revenue. Management previously guided to a $100 billion+ annualized run rate by December, including the Cursor acquisition, which was $60 billion, to close the quarter.
Listen for updates on SpaceX’s compute capacity, especially pertaining to its contracts with Google, Anthropic, and others, revenue per watt, any new deals, and Cursor’s early contribution.
Starlink/Connectivity Metrics and Mobile Expansion
Connectivity remains a main profit engine for SpaceX. Subscriber additions will be something to pay attention to, as Q2 ended at 12 million and previews are looking at 14 million for this quarter. Additionally, ARPU trends, enterprise and government growth, and any commentary on Starlink Mobile will be something to pay attention to, especially following the recent low-band spectrum deal and FCC-related constellation approvals.
Capex Trajectory, Cash Burn/FCF, and Starship/Operational Updates
Q2 capex of roughly $18.4 billion weighed on the stock. Investors will look to scrutinize Q3 spending levels, any guidance on the pace into Q4/2027, free cash flow, backlog, and liquidity. Operational color on Starship (Flight 14 milestones and Flight 15 timing/reusability progress), Falcon cadence, and government/NASA contracts are also in focus.
Of course, there will also be some speculation on the potential Tesla-SpaceX merger, but there was nothing mentioned in the company’s proxy it sent earlier this week.
SpaceX will report earnings after market close today and will stream the call on X.
Watch live as SpaceX discusses our Q3 2026 earnings at 3:30pm CT today → https://t.co/Qrb0qeVG15
— SpaceX (@SpaceX) October 20, 2026
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