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Tesla coverage turns negative a week before crucial Earnings Call
Tesla news coverage this week has been especially negative, and the timing of it, which comes a week before arguably the most anticipated Earnings Call in recent memory. With Tesla reporting production and deliveries that were well over Wall Street’s consensus, anticipation for the Q1 2021 Earnings Call is slightly higher than usual, and the FUD (Fear, Uncertainty, Doubt) is at an all-time high.
There are always a few negative Tesla stories every week. It might involve a story about some owners who didn’t receive adequate customer service, it might be about a production bottleneck that Tesla is encountering. However, these are relatively micro-scale issues that are resolved within a matter of days in most cases. This week, the news has been geared toward more disruptive, long-term, macro-level issues, like a very public car accident that has both sides of the Tesla circle butting heads, a test from a very well-known product review company that has to do with the aforementioned accident, and other safety issues that have resulted by a rumored irresponsible driving speed by a customer in China. Whether you agree with it or not, there seems to be a more coordinated attack on something that Tesla does well, which is to keep its drivers and owners safe. One of the strongest points of Tesla’s overwhelmingly successful venture into the automotive industry thus far was the company’s ability to keep vehicle occupants safe in the event of a crash, and also roll out software and semi-autonomous driving functionalities that aim to improve consumer safety in revolutionary ways.
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This doesn’t always turn out to be what the media wants to report, however. The week before the Q1 Earnings Call, it was relatively impossible to notice that the tide turned negative on Tesla news coverage. While it is understandable that a violent automobile crash that took the lives of two men should be covered, it captured national headlines and dominated news coverage across the world for several days. Interestingly, I don’t remember such widespread news coverage for the Ford Death Wobble.
Journalists find stories and then build upon them for other sorts of coverage. It’s spin-off coverage where readers get to see how creative the mind of a writer is. There are millions of stories that could be written based on the recent automobile accident. However, a majority of them were negative, and it doesn’t necessarily come down to truth, it comes down to perception. Unfortunately, I don’t believe that many of the journalistic coverages were completely accurate simply because of Autopilot’s misunderstood capabilities in the real world. I still receive questions and comments daily from those who I talk to who believe Teslas are capable of driving themselves. What is even more frustrating is that, at times, owners and drivers, who should have the company’s best interest at heart, spread content, Tik Toks, and other forms of social media portraying that their all-electric car can drive them from Point A to Point B while they sit in the back seat and take a nap. This kind of content is irresponsible, immoral, and wrong. Acting like a Tesla can drive itself completely just for few thousand views is a selfish act that puts the hard work of Tesla engineers at risk for losing all of their work.
That brings me to the unfortunate accident in Texas. We don’t know, yet, what the exact cause of the accident was. We don’t know who was in the driver’s seat, if AP was being tricked, or if it was even on at this point. Most evidence would likely indicate that AP couldn’t have been activated due to the lack of road lines, and the rate of travel isn’t something that AP would let the driver do, to begin with. Eventually, we will have all the facts of this story, and we will be able to accurately say who or what was responsible. But as of right now, those things cannot be speculated against.
Still, news sources are claiming that this car was “driverless,” which is a complete nonsensical narrative considering there are many boundaries that would require a driver to be present during the vehicle’s operation. This didn’t stop Consumer Reports from putting together one of the most ridiculously biased tests I have ever come across. I felt that it simply proved Tesla Autopilot would only be tricked in extreme circumstances, by not following the automaker’s directions and trying to outsmart one of the most capable semi-autonomous driving programs in the world.
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The obvious effort to derail Tesla’s momentum is being noted by the fans, followers, and owners of the company. For the life of me, I cannot understand why. In my perspective, for years, MSM has been driving home the point of global climate change, using it as a way to scare people into change. While I believe that fear isn’t always the best way to convince a large group of people to do something, I think climate change is a real issue and it will affect people for generations to come. With cars being such a large contributor to the problem, you’d think the media, the same interests that have been preaching the dangers of carbon emissions for years, would report car companies who are working to transition the automotive industry to electrification, would get a “fair shake.” This just hasn’t been the case.
Trust me, I am a critic of Tesla when it is warranted. I have experienced issues with their customer service department personally, and I have been highly critical of their handling of other issues with its vehicles. I have spoken many times about the LR RWD Model Y and how it was a disgrace for Tesla to keep these pre-orderers in limbo for years. However, there are statistics that prove FSD and AP’s ultimate task: to make driving safer. Most recently, the Q1 2021 Safety Report showed Autopilot was nearly 10 times safer than a human driver. You don’t see mainstream media covering this, but you’ll notice automotive blogs and news outlets taking full advantage of the statistics, which prove Tesla’s mission is becoming more real with every mile driven.
With the momentum Tesla posted with the Production and Deliveries report, I think many people were expecting a big financial quarter. The timing of the negative news is eye-opening, and it seems to be a coordinated effort to perhaps slow down Tesla’s momentum moving forward. Tesla is gunning for yet another consecutive quarter, bringing the total to seven straight if things go well on Monday. Whether Wall Street will recognize the impressive tone of this feat, we’ll see. However, media coverage has done all it can to bring Tesla’s chances of a great quarter down, but with developments, demand, and deliveries all in healthy figures, there doesn’t seem to be much of a chance of that happening.
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Elon Musk
Space finally faced the people living next to its next Terafab mega-project
SpaceX confirmed Terafab’s Grimes County site is locked in, with construction starting within months.
SpaceX and Terafab representatives sat across from Grimes County residents for the first time on Wednesday, telling a packed Commissioners Court room that the $55 billion chip manufacturing project is now a done deal at the Gibbons Creek Reservoir site.
The meeting followed a $10 million check SpaceX sent the county earlier this week, satisfying a payment deadline built into the tax abatement agreement both sides signed in June. Elon Musk shared a post on X confirming the payment, and County Judge Joe Fauth told the San Antonio Express-News his office deposited the check after it beat its deadline.
Wednesday’s session, first reported by KBTX, moved the project from paperwork to construction. Terafab representative Riley Trennell told residents the JETI tax break agreements with Iola ISD and Anderson-Shiro CISD are signed and active, and that civil work and foundation prep are starting almost immediately. Renderings of the facility could be released within days, he said, with construction beginning within months.
Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry
Musk first announced Terafab in March as a joint venture between Tesla, SpaceX and xAI aimed at producing over a terawatt of AI compute annually, an amount that dwarfs the roughly 20 gigawatts the entire global chip industry produces today. Intel joined as a manufacturing partner in April. Musk has said the project needed its own day in the spotlight rather than being squeezed into an earnings call, and for months the Grimes County site remained unconfirmed even as reporting pointed there.
SpaceX attorney Buck Brannon used Wednesday’s meeting to note that the company’s abatement is roughly 78 percent, not the 100 percent some earlier reports suggested. In exchange, SpaceX will pay Grimes County a fixed $20 million a year for 35 years, a total of $710 million, which Brannon said exceeds the $14 million Tesla paid Travis County in 2025.
SpaceX also addressed environmental concerns that have followed the project since Musk’s Terafab partnership with Intel was announced. Representatives said Terafab will not raise electric bills for other ratepayers, will not deplete local water supplies and will not draw down the Navasota River. SpaceX confirmed it owns the Navasota River pumping station, which it plans to use to divert stormwater into the Gibbons Creek Reservoir, and said it will build its own natural gas plants to power the facility rather than pulling from the ERCOT grid.
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Grimes County commissioners also approved an addendum letting county employees use ten approved AI chatbots for work, including Grok.
Elon Musk has declared that SpaceX has effectively solved one of Starship’s most persistent engineering challenges: the reliability of its heat shield tiles.
During the company’s first-ever Earnings Call, the SpaceX CEO stated:
“I don’t want to jinx it or anything, but I think I would call the heat shield problem solved at this point. All indications from data and visual inspection is we have solved it. That doesn’t mean we won’t make improvements, but we do not see any technical obstacles to achieving rapid reusability at this point.”
Starship’s heat shield consists of roughly 18,000 hexagonal ceramic tiles covering the windward side of the upper stage. These tiles form the thermal protection system that shields the vehicle’s stainless-steel structure from the extreme heat of atmospheric reentry.
Elon says he believes the heat shield problem with Starship is currently solved.
He called it “arguably the single biggest problem” pic.twitter.com/eEE9vM5zlz
— TESLARATI (@Teslarati) August 4, 2026
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During descent, atmospheric friction generates temperatures exceeding several thousand degrees Celsius and creates plasma flows capable of melting unprotected metal. The tiles absorb, radiate, and insulate against this energy, allowing the vehicle to survive and potentially fly again. Without a durable heat shield, full and rapid reusability, the cornerstone of Starship’s design for frequent launches, satellite deployments, and deep-space missions, would remain impossible.
The tiles have long been a source of difficulty. On earlier test flights, a significant number of tiles detached during ascent due to vibration, aerodynamic loads, and imperfect attachment methods using pins and adhesives. Gaps between tiles allowed hot plasma to infiltrate, causing secondary damage and hot spots on the underlying structure.
These issues echoed challenges faced by NASA’s Space Shuttle, whose ceramic tiles required extensive, labor-intensive inspections and replacements between missions, preventing rapid turnaround. SpaceX has iteratively improved materials, standardized tile shapes, refined attachment techniques, added secondary ablative layers, and tested sealing methods such as “crunch wrap” felt to close gaps.
Progress was visible across Flights 10–12, with steadily better tile retention, yet questions remained about whether the system could support the minimal-refurbishment goal of rapid reuse.
Flight 13 on July 24 provided the decisive evidence. Ship 40 flew a deliberately more demanding profile with higher dynamic pressure to stress the heat shield beyond typical operational loads. It successfully deployed 20 operational Starlink V3 satellites, the first such payload on a Starship mission, performed an in-space Raptor engine relight, and executed a controlled reentry.
Elon Musk sheds two new bits of detail on Starship after 13th test launch
Cameras on six of the satellites and onboard sensors captured extensive imagery and data of the shield throughout the flight. The ship then achieved its softest splashdown to date in the Indian Ocean, remaining intact and floating rather than breaking apart or exploding as on prior missions. This allowed drone inspections and continuous telemetry of the heat shield in near-real time.
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Post-flight analysis showed the majority of tiles remaining attached with only minor damage and limited plasma streaking at seams. Musk noted that the mission delivered “all the heat shield data we needed and then some.” Combined with visual inspections, these results underpinned his subsequent assessment that the core technical barriers to rapid reusability have been cleared. While refinements will continue, Flight 13 marked a pivotal step toward Starship’s operational future.
SpaceX COO Gwynne Shotwell outlined ambitious plans for Starlink Mobile during the company’s August 4 Earnings call, signaling a direct challenge to U.S. wireless giants like AT&T, T-Mobile, and Verizon.
Shotwell noted that the three companies generate roughly $600 billion in combined annual revenue. “I anticipate us to be able to acquire quite a few of their customers because I think our service will be better,” she said. “We will eliminate dead zones leveraging the satellites in orbit. It will be better during any natural disaster… I’m quite excited about Starlink Mobile.”
SpaceX President & COO Gwynne Shotwell on @Starlink Mobile and its impact on Verizon, AT&T and T-Mobile:
“Roughly, between them, $600 billion a year. I anticipate us to be able to acquire quite a few of their customers. Our service will be better. We will eliminate dead zones… pic.twitter.com/UYZUkrGc0L
— Sawyer Merritt (@SawyerMerritt) August 4, 2026
SpaceX intends to combine its satellite constellation with terrestrial infrastructure. The company has acquired about 65 MHz of spectrum from EchoStar and plans to deploy next-generation Starlink Mobile satellites in 2027, with upgraded service targeted for the end of that year.
Shotwell described the enhanced network, leveraging more satellites and spectrum, as potentially “100 times better” than the current direct-to-cell offering, which already supports basic texting and app-based voice/video in coverage gaps through partnerships. She also indicated plans for low-cost cellular base stations that could integrate with existing Starlink dishes, creating a hybrid system for broader capacity in urban, suburban, and rural areas.
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For the general public, Starlink Mobile promises significant advantages. Satellite connectivity can fill gaps where traditional cell towers fail, delivering service in remote locations, mountains, or during outages caused by storms, wildfires, or infrastructure damage—conditions in which ground networks often collapse.
Users could enjoy more consistent coverage without relying solely on dense tower builds, potentially at competitive prices as SpaceX scales. The hybrid approach aims to support full mobile services, including higher-speed data, while working with unmodified smartphones over time.
These developments revive long-standing but unfounded rumors of a Musk-developed “Tesla phone.” Speculative claims of a “Pi Phone” or similar device with built-in Starlink connectivity have circulated for years on social media, often featuring fabricated images and details. Elon Musk has repeatedly denied any such plans, stating Tesla has no intention of entering the smartphone market unless forced by extreme circumstances with app stores.
No official product, filings, or development announcements have ever materialized; the rumors remain hoaxes.
The announcement quickly pressured telecom stocks. Shares of AT&T, Verizon, and T-Mobile fell between roughly 2 and 4 percent in after-hours and premarket trading as investors weighed the competitive threat from a hybrid satellite-terrestrial network.
While execution challenges remain—spectrum deployment, infrastructure rollout, and regulatory hurdles—Shotwell’s remarks mark SpaceX’s clearest signal yet of entering the consumer mobile market as a full competitor.
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Space finally faced the people living next to its next Terafab mega-project
SpaceX has solved Starship’s biggest challenge, Elon Musk says
