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Tesla gets big legal wins as Musk finds himself at risk of libel over Thai caver controversy
Tesla’s legal troubles got a bit lighter this week, while Elon Musk seemingly gave himself yet another self-inflicted blow. Earlier his week, Tesla won a dismissal of a securities fraud lawsuit over the company’s progress in the production of the Model 3. The company also won a court case against the Ontario government over the state’s cancellation of EV rebates for Tesla customers.
The securities fraud lawsuit against Tesla alleged that the company and its executives knowingly knew that they could not meet their self-imposed goals of producing 5,000 Model 3 per week by the end of December 2017. The lawsuit’s plaintiffs argued that despite knowing these, Tesla still gave the impression that it was equipped to meet its production goals. This caused the stock to become volatile, resulting in losses for some shareholders.
In a decision that was made public on Monday, U.S. District Judge Charles Breyer noted that while it was true that the electric car and energy company was not able to meet its self-imposed production goals, “federal securities laws do not punish companies for failing to achieve their targets.” Tesla, for its part, noted that its difficulties in reaching its manufacturing targets for the Model 3 were caused by bottlenecks in its Nevada Gigafactory and its main factory in Fremont, CA.
“Plaintiffs are correct that defendants’ qualifications would not have been meaningful if defendants had known that it was impossible for Tesla to meet its stated production goals, not merely highly unlikely. The facts plaintiffs have put forth do not tend to establish that this was the case,” Judge Breyer wrote.
Tesla also won a case it filed against the Ontario government over the cancellation of EV rebates for Tesla’s electric cars. The revised EV rebate program was rolled out by the new Ontario government, and it singled out Tesla’s customers from qualifying for rebates of up to $10,640. In a ruling on Monday, Judge Frederick Myers of Ontario opted to strike down the transition program rolled out by the new government. A spokesperson for Tesla issued a statement to Reuters welcoming the Ontario judge’s ruling.
“Tesla only sought fair treatment for our customers, and we hope the Ministry now does the right thing by delivering on its promise to ensure all [electric vehicle]-owners receive their incentives,” the Tesla spokesperson said.
Unfortunately, this week also saw Elon Musk getting baited once more on Twitter over his previous comments about British cave explorer Vernon Unsworth, who was critical of Musk’s efforts to help a soccer team stranded in a flooded Thai cave system last July. After receiving requests online that he help in the Thai rescue efforts, Musk, together with SpaceX and Boring Co. engineers, developed a mini-submarine that the stranded children could use to escape the flooded cave system. Unsworth was dismissive of the mini-sub, stating that it would not work and suggesting that Musk “stick his submarine where it hurts.” In anger, Musk retorted, calling the caver a “pedo guy” on Twitter. Musk later deleted his tweet and apologized to Unsworth.
Just yesterday, Musk was on Twitter when he got baited into discussing Unsworth and his previous incendiary comments once more. At one point, Musk even noted that “You don’t think it’s strange he hasn’t sued me? He was offered free legal services.”
As it turns out, a libel lawsuit was indeed on the way. Unsworth is reportedly preparing to file a civil complaint for libel against Musk, according to a letter from the caver’s lawyer shared to CNBC. The attorney’s letter described Musk’s tweets as “false and defamatory.” The lawyer also urged Musk’s legal counsel to contact him to avoid litigation and correct the reportedly false statements. The letter was dated August 6, just a day before Musk posted his fateful “funding secured” tweet.
While Musk faces another possible lawsuit over his Twitter activity, Tesla continues to pursue its Model 3 ramp. The production of the electric car seems poised to hit record levels this quarter, with analyst Romit Shah of Nomura Instinet stating that Tesla could produce as many as 65,000-70,000 Model 3 this quarter. Baird analyst Ben Kallo is also optimistic about Tesla’s numbers this Q3, stating that the company’s fundamentals are “underappreciated” amidst the noise from the controversy resulting from Elon Musk’s go-private initiative.
Elon Musk
Tesla Roadster owners to get “Flying Stunt Mode” and looping track access
Musk says Roadster owners can command the unveiling stunts autonomously, with a Texas looping track.
Elon Musk says owners of the new Tesla Roadster will be able to ask the car to perform the stunts Tesla showed at its unveiling, with the car doing the driving itself. Musk made the comment Saturday in a reply on X to tech blogger Robert Scoble, and he added a promise of a looping track at Tesla’s Texas headquarters.
Scoble had argued that the person in the Roadster is not really driving it. In his description, the driver operates a computer that tells another computer what to do, with steering, braking and acceleration all handled by wire. Musk answered, “True. You will be able to ask the Roadster to perform any of the tricks shown autonomously, as it will be sentient. Also, we will have a wild looping track (crazier even than Hot Wheels) at our Texas HQ where you can test out your Roadster.”
@Scobleizer True.
You will be able to ask the Roadster to perform any of the tricks shown autonomously, as it will be sentient.
Also, we will have a wild looping track (crazier even than Hot Wheels) at our Texas HQ where you can test out your Roadster.
— Elon Musk (@elonmusk) October 17, 2026
At the October 15 event outside Waco, the car drove up a curved ramp until it was upside down, flew off on cold gas thrusters, flipped and landed. It also hovered over a Cybercab, Cybertruck, Semi, Model Y and Model 3 while moving. As we noted in our breakdown of the three Roadster configurations, Musk said at the event that the car “literally is just going to puff itself up” to perform the maneuvers whenever an owner wants. Saturday’s reply adds that the car would run them on its own.
Tesla has described some of the hardware that would make that possible. The Roadster uses steer by wire with a yoke, and its cold gas thrusters rely on electric actuators for small adjustments in flight. A fan system under the car creates suction, which Tesla says is strong enough to hold it upside down, a setup we covered in our look at the Roadster’s fan system and thrusters.
Musk did not say when an autonomous stunt feature might arrive, how it would work, or what he means by sentient. He also gave no size, location or opening date for the Texas track. Production is planned for Giga Texas in 2027 or 2028, and Tesla says the car is not approved for public road use. The Rocket version, the one built to fly, is invite only.
The comment follows a week of Musk teasing the event, including his claim that the demo would be a banger, which we covered before the stream. Tesla reports third quarter earnings on October 21, and shareholders can submit and vote on questions through the Say portal until 4 p.m. EDT on October 20, according to our earnings Q&A preview. A question about autonomous Roadster stunts and the Texas track would be a quick way to get specifics from management.
Elon Musk
How to use Grok Bot to block spam calls and texts
Musk told users to ask Grok Bot to scrub their phone numbers from spam lists.
Elon Musk has a new use case for Grok Bot, and it is the spam call. On Thursday he replied to an X user named Arash with a short instruction: “Ask your @Grok @Bot to remove your phone number from spam call & text lists!” Arash had said he got tired of the calls, had an AI bot find his number on listing sites and file removal requests, and packaged the process as a free skill for others.
The skill is called Spam-Call Scrubber, which is described to find a phone number on people search sites and data brokers, submits the opt outs, completes the confirmation emails those sites send back, and rechecks on a schedule the user picks. Using it requires the Grok Bot app. The pitch is time saved, since most broker opt outs sit behind separate forms on separate sites.
Ask your @Grok @Bot to remove your phone number from spam call & text lists!
— Elon Musk (@elonmusk) October 15, 2026
Musk said Grok Bot now gives each bot its own email address, and that it can detect scam emails. On Thursday he also said SpaceX would make users whole if the bot botches a purchase or leaks a card, then told users to shop away from Amazon after the retailer blocked the agent, as Teslarati reported. The terms of service we reviewed at the time put responsibility for what an agent does on the user.
For Tesla owners, Grok Bot is not just a phone app. Tesla brought Grok Bot into its vehicles on September 22, and we argued earlier this week that the Cybercab’s real advantage may be the errands it runs during a ride. Every Cybercab and the rest of the Model Y Robotaxi fleet has it enabled. The more routine tasks like this one become, the more a rider has reason to hand over something personal in the back seat.
The new Spam-Call Scrubber skill can be downloaded for free and works on sites that honor removal requests, while noting that listings can reappear, and illegal robocallers do not check any registry. Whether Spam-Call Scrubber cuts anyone’s call volume is something the first wave of users will find out, and Musk’s endorsement guarantees that wave is coming.
Investor's Corner
Tesla’s flying Roadster just revealed something bigger than the car
Analysts say the Roadster demo puts a Tesla and SpaceX merger back on the table.
The Roadster unveiling near Waco ended Thursday night, and by Friday morning much of the investor reaction had less to do with the car than with who owns the rocket technology inside it.
Wedbush analyst Dan Ives said the event “puts the Tesla/SpaceX relationship on the table in a tangible way,” pointing to the propulsion, pressure vessel and control hardware sitting on a Tesla product. Gene Munster of Deepwater Asset Management called the demo “a ridiculous display of engineering” with “no commercial value” beyond embarrassing traditional automakers, though he said it showed Musk wants the two companies together.
The more specific forecast came a day earlier from Barclays. Analyst Dan Levy told clients a deal could be announced before Tesla’s annual meeting, which must happen by December 6, and that an announcement in late October or early November could make shareholder approval harder. Barclays expects SpaceX to be the buyer in an all stock deal, with Tesla holders receiving SpaceX shares at a premium, based on market values of roughly $2.1 trillion for SpaceX and $1.5 trillion for Tesla. If nothing lands around the meeting, the bank still sees an announcement within 6 to 12 months.
The Roadster demo just added more weight to merger speculations. Tesla’s demo used cold gas thrusters and pressure tanks of the kind SpaceX uses on Falcon 9, and Musk described the car as a collaboration between Tesla and SpaceX engineers, as we mentioned in our breakdown of the three Roadster configurations.
Musk has not publicly addressed a deal since the event, as far as we have seen. His most direct answer remains the one he gave at the All In Summit, when he said that with so much collaboration, “who can imagine what action one might take” without ruling anything out. Ives has held to a 2027 timeline since his March note, and Musk pushed back on the China piece of the speculation when ARK floated a year end announcement in August.
The next test is Tesla’s third quarter earnings call on October 21. However, we recall in July that Musk told analysts, “we can’t talk about combining companies and that kind of thing on an earnings call,” so a clear answer wouldn’t be expected.