Connect with us

News

Tesla gets big legal wins as Musk finds himself at risk of libel over Thai caver controversy

Published

on

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.

Advertisement
-

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. 

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

Advertisement
Comments

Elon Musk

Elon Musk drops a surprise update on Boring Company’s next big dig

Musk says Boring Company could shrink the Austin to San Antonio drive to just minutes.

Published

on

By

Elon Musk says The Boring Company is working on what he called “a simple, precursor Hyperloop” tunnel connecting Austin and San Antonio, targeting speeds above 200 mph and cutting a drive that can take up to two and a half hours down to a consistent under 30 minutes. Musk posted the idea on X Sunday, in a reply to a repost of an AI generated video imagining a science fiction future with human colonies on other worlds, which he shared with the line “This is the future we shall bring into being.”


The Boring Company’s own account picked up the idea in the same thread, adding a detail about how the trip would actually work: “Because Loop/Hyperloop is express (i.e. no intermediate stops), one could travel from an Austin parking lot to a favorite San Antonio restaurant in about 30 minutes. As long as they both have Loop stations.” That framing ties the proposed intercity link to the same station model the company already runs in Las Vegas, where riders enter the tunnel network through small, garage style stops rather than one central terminal.

This is not the company’s first run at the Austin to San Antonio corridor. Boring Company floated tunnels between the two cities as far back as 2021, and later competed for a separate San Antonio Loop project tied to the airport before that specific bid stalled. Pitches for tunnels in Chicago, Los Angeles, and a New York to Washington corridor have followed a similar pattern of big announcement without a shovel in the ground.

What is different this time is the balance sheet, especially since The Boring Company closed a 3 billion dollar funding round led by investors in the United Arab Emirates earlier this month at a valuation near 23 billion dollars, giving the tunneling company more capital to chase speculative projects than it had during its earlier Texas pitches. The company is also mid-build on two other intercity systems it has actually broken ground on, inc;luding a Nashville tunnel linking downtown to the airport, where a second boring machine finished commissioning in June, and its Las Vegas network, where the station count keeps climbing on paper faster than tunnels get dug.

That gap between announcement and execution is the reason to treat Sunday’s post as an opening bid rather than a project. A tunnel spanning roughly 80 miles between two metro areas, running at speeds Boring Company has not demonstrated over any real distance, would dwarf anything the company has built. For now, the Austin to San Antonio Hyperloop exists as a caption under an AI generated space video.

Advertisement
-
Continue Reading

Elon Musk

Tesla eyes supply partners for Optimus mass production

Tesla certified three Chinese suppliers for Optimus mass production, signaling its robot timeline is accelerating.

Published

on

By

Concept rendering of Tesla Optimus in mass production

Tesla’s robotics team traveled to Ningbo, in China’s Zhejiang province, on September 16 and spent the following day auditing component suppliers for Optimus, according to a Bloomberg report cited by RobotAIGeek. The visit moved three manufacturers from provisional status to certified mass production partners: Tuopu Group, which handles actuators and chassis components, Ningbo Joyson Electronic, a sensor supplier, and Zhejiang Sanhua Intelligent Controls, which builds thermal management systems. All three already supply parts to Tesla’s electric vehicles, and the audit reportedly came with fresh orders that supply chain reports put at an initial batch of roughly 5,000 units.

Tuopu, Joyson, and Sanhua built their manufacturing base serving the automotive industry, where tolerances and volume requirements are already close to what a mass produced humanoid robot demands. Sanhua in particular has history here. Teslarati reported last October that the company had received a roughly $685 million order for linear actuators tied to Optimus, a volume industry watchers estimated could cover around 180,000 robots once production ramped.

Supply chain reports tied to this week’s audit put Tesla’s near term production goal at about 1,000 Optimus units a week by late September, rising to 2,000 to 2,500 units a week by the end of the year. That pace would put real weight behind the timeline Tesla has been building toward since May, when it wound down Model S and Model X production at Fremont to convert that floor space into a dedicated Optimus line targeting one million units annually. JPMorgan analysts who toured the factory in August confirmed the conversion took roughly four months, a pace Musk has called unprecedented for a facility that size.

New drone video shows Tesla’s Optimus Factory reaching a turning point

Fremont is only the first phase. A second, larger Optimus plant is rising at Gigafactory Texas, where drone footage shared by Joe Tegtmeyer last week showed the structural steel nearing completion on the north end of the building. Tesla has said that facility is meant to eventually support production of up to 10 million units a year, though volume output there is not expected before 2027.

Commercial sales of Optimus are still targeted for the second half of 2027, but production is expected to start well before then. JPMorgan analyst Rajat Gupta has said Tesla’s “Optimus Academy” program, which uses early units to collect real world training data inside Tesla’s own facilities, is expected to be running later this year. Bloomberg Intelligence analyst Ian Ma described the Ningbo audits as “a positive commercialization signal for China’s humanoid supply chain,” noting that sentiment could improve further if the visit leads to confirmed supplier nominations and larger orders. The Solactive China Humanoid Robotics Index rose about 1.4% on the news, though it remains down roughly 30% for the year.

Advertisement
-
Continue Reading

Elon Musk

Elon Musk’s next Uranium in Uranus merch is Boring Company’s weirdest tease yet

Elon Musk teased a glowing new Boring Company merch idea, complete with a Geiger counter.

Published

on

By

Concept rendering of Boring Company Uranium in Uranus merch tease via Grok
Concept rendering of Boring Company Uranium in Uranus merch tease via Grok

Elon Musk teased the next piece of Boring Company merchandise on X Saturday, and it is exactly as unserious as fans of the company’s product history have come to expect. “The next @boringcompany merch will put Uranium in Uranus,” Musk wrote in a thread posted early Saturday morning. He followed up by explaining that the item would glow in the dark, “because otherwise how could you find it,” and that a Geiger counter would be sold separately as “an optional strap-on.”

Musk closed the thread with a line that doubles as a mission statement for the tunneling company’s merchandise arm: “It’s not easy coming up with something that is both outrageously unsellable and yet extremely popular.”

The Boring Company has built a small but consistent side business out of novelty items that start as jokes and end up selling out. The company’s Not-a-Flamethrower raised roughly $10 million in a few days back in 2018, moving all 20,000 units it produced. Its Burnt Hair perfume, priced around $100 a bottle, sold out fast enough that scalpers were flipping units on eBay for ten times the retail price. Boring Bricks, made from tunneling spoil, followed the same playbook of teasing a product on X months before it became real.

Musk has not said what the actual item will be, only that it involves uranium and glows in the dark. Given the pattern, that vagueness is probably intentional. Past merch announcements have started as one-line jokes and taken weeks or months to turn into an actual product listing on the company’s site, and there is no guarantee this one follows through at all.

The timing lines up with a period of real momentum for the Boring Company outside of the joke merchandise. The company said last week it plans to double the number of operational stations on its Vegas Loop by the end of the year, a target tied to a hiring push for drivers and operations managers. Prufrock-5, one of the company’s tunnel boring machines, also just wrapped a test tunnel in Bastrop, Texas, and is expected to relaunch on its next assignment in November.

Whether the uranium joke turns into an actual product remains to be seen. Musk’s post did not include a price, a shipping date, or even a name for the item, which has historically meant a Boring Company website page goes up quietly, password protected, sometime before an announcement.

Advertisement
-
Continue Reading