News
Tesla sends cease-and-desist letter against ad claiming FSD will “mow down children”
It took a while, but Tesla finally seems to be putting some effort into curbing an aggressive and controversial anti-FSD ad that claims that the company’s advanced driver assist system is unsafe and will “indiscriminately mow down children.” A cease-and-desist letter from the electric vehicle maker has reportedly been sent to The Dawn Project, an advocacy group from Dan O’Dowd, the CEO of Green Hills Software, a company that is also developing self-driving software.
The Anti-FSD Ad
Earlier this month, O’Dowd, through The Dawn Project, started pushing an anti-FSD ad that supposedly showed a Model 3 hitting a child-sized mannequin while FSD was engaged. The video and O’Dowd’s succeeding Twitter commentary were salacious, so it was no surprise that the ad’s allegations were echoed by numerous news outlets. The campaign attracted attention and criticism from Tesla supporters, however, some of whom proceeded to point out discrepancies in the anti-FSD ad.
A number of FSD Beta testers, who have been using Tesla’s advanced driver-assist system for years, proceeded to conduct tests of their own, showing that FSD Beta does stop for people. Others observed that the driver of the Model 3 in O’Dowd’s test intentionally ignored safety warnings from the vehicle. Even EV fan blog Electrek pointed out a number of inconsistencies with O’Dowd’s supposed FSD test results and data, including a sequence in the ad when the advanced driver-assist system was not engaged at all.
Cease-And-Desist
In its cease-and-desist letter, which was retrieved by The Washington Post, Tesla objected to the anti-FSD ad. The company alleged that the footage being pushed by O’Dowd was defamatory and misrepresented the capabilities of its advanced driver-assist system. Tesla demanded that the anti-FSD campaign be immediately halted and the videos be removed.
“The purported tests misuse and misrepresent the capabilities of Tesla’s technology, and disregard widely recognized testing performed by independent agencies as well as the experiences shared by our customers,” Tesla deputy general counsel Dinna Eskin wrote. Tesla also accused O’Dowd’s team of “unsafe and improper use” of FSD Beta. “Your actions actually put consumers at risk,” the EV maker added.
O’Dowd has reacted strongly to the letter. In a post on Twitter, O’Dowd noted that Musk was threatening to sue him. The Green Hills CEO included an incendiary illustration captioned with “Elon Musk’s Idea of Free Speech” on his post, which depicted Musk naked on his plane with a bound woman sandwiched between two male lawyers. The image seems designed to bait Musk, though Tesla itself has not issued a statement about its cease-and-desist letter.
“This letter is so pathetic in terms of whining: Mr. Free Speech Absolutist, just a crybaby hiding behind his lawyers,” O’Dowd told the Post. He also stated that he does not intend to take down his anti-FSD campaign. Instead, O’Dowd has pledged to put even more money into his anti-FSD efforts.
Not the First Time
This is not the first time that Dan O’Dowd has put Tesla in his crosshairs. Earlier this year, O’Dowd ran for California Senate with the sole purpose of stopping Tesla’s driver-assist systems, which he claims are the worst he has seen. For context, O’Dowd has stated that his software never fails and is unhackable, a claim that has been challenged by cyber security advocates.
Interestingly enough, Politico reported that O’Dowd actually did not plan to win a seat in the CA Senate at all — he was simply in the race because running for office entitled him to the lowest available ad rate in the run-up to the election. It also granted a higher degree of first amendment protection for his loaded claims against Tesla. Ultimately, O’Dowd ended up spending $3.8 million during his campaign — one of the most out of CA Senate candidates— but it resulted in him only getting 1.1% of the votes.
Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.
Elon Musk has firmly denied recent media reports suggesting that SpaceX has reduced its target valuation for an upcoming initial public offering.
The denial came directly from the SpaceX and Tesla frontman on his social media platform X, where he responded with a single word, “False,” to a post from ZeroHedge that cited Bloomberg sources.
This swift rebuttal underscores Musk’s ongoing effort to manage speculation surrounding one of the most anticipated market debuts in recent history.
False
— Elon Musk (@elonmusk) May 29, 2026
According to the disputed reports, SpaceX had lowered its IPO valuation goal to at least $1.8 trillion from previous ambitions exceeding $2 trillion.
The claims emerged amid growing anticipation for the company’s confidential S-1 filing, which positions it for a potential public listing as early as June.
Some had pointed to strong revenue growth, particularly from the Starlink satellite internet service, which contributed heavily to the firm’s 2025 figures of $18.7 billion. Yet challenges persist in other areas, including substantial investments and losses tied to ambitious projects like Starship development and artificial intelligence initiatives, which plan to make life multiplanetary eventually.
Musk’s response highlights a pattern in which he actively counters what he views as inaccurate portrayals of his companies’ trajectories.
SpaceX, already valued privately at extraordinary levels, stands as a cornerstone of Musk’s empire alongside Tesla and xAI. The entrepreneur has long emphasized the transformative potential of reusable rockets and global broadband access, factors that fuel investor enthusiasm despite operational hurdles.
By rejecting the valuation downgrade narrative, Musk signals confidence in SpaceX’s fundamentals and its readiness for public markets on terms favorable to its long-term vision. People have been waiting a very long time to invest in SpaceX, and the valuation, as well as the introductory share price, is not going to need adjusting.
They’ll have plenty of suitors.
This episode reflects broader dynamics in the technology sector, where rumors often swirl around high-profile entities. Musk’s direct engagement with media narratives serves to maintain transparency and control the narrative around his ventures.
As SpaceX prepares for greater scrutiny in public markets, the founder’s denial reinforces optimism about its prospects. Supporters argue that the company’s innovative edge positions it for enduring success, far beyond short-term valuation debates. With the denial now public, attention turns to forthcoming regulatory filings that could provide clearer insights into SpaceX’s strategy and financial health.
The coming weeks promise to reveal more about how SpaceX will transition into a publicly traded powerhouse.
Tesla’s dreams of operating a fully autonomous ride-hailing platform just took a massive step toward reality, as two separate events have indicated the company is perhaps closer than ever to achieving self-driving as a product.
On Thursday, Tesla was granted authorization by the State of Texas to operate driverless vehicles in a commercial manner. On May 28, Senate Bill 2807, passed by the 89th Texas Legislature, took effect after being passed back on September 1, 2025.
The bill establishes a statewide regulatory framework requiring authorization from the Texas Department of Motor Vehicles for companies to operate automated vehicles commercially on Texas roads.
This covers driverless, or SAE Level 4+, operations for passenger transport, meaning Robotaxi, or freight.
Tesla and other companies can self-certify their vehicles and tech as long as they:
- Operate in compliance with Texas traffic laws
- Maintain proper registration, title, and insurance
- Use compliant automated driving systems
- Record onboard activity and handle system failures and glitches safely.
The new authorization, which was first reported by James Stephenson on X, allows companies to utilize their own processes to determine if their vehicles are ready to operate without drivers.
🚨BREAKING:
Tesla has been authorized by the State of Texas to operate driverless vehicles commercially under the new law that took effect today, May 28th, 2026. Tesla has officially self-certified the software running on its robotaxis as Level 4. $TSLA pic.twitter.com/KSJdsvlaW5— James Stephenson (@ICannot_Enough) May 28, 2026
It is a rule that expedites the entire approval process, keeping agencies out of a usually long, lengthy, and frustrating task that is essential to technological advancements. It essentially means Tesla can launch commercial Robotaxi operations at this point.
On the very same day, Tesla continued the momentum as CEO Elon Musk shared a video of Cybercab units autonomously driving off the property at Gigafactory Texas. This is a major step in the story of the Cybercab.
Mass production of the Cybercab started at Giga Texas in April, and it is already heading out of the factory on its own.
Cybercab driving itself out of the GigaTexas factory pic.twitter.com/EwAMVVDjYy
— Elon Musk (@elonmusk) May 28, 2026
These two major events mark a drastic step forward in Tesla’s progress toward Cybercab and the permissions it needs to operate a self-driving ride-hailing service. Tesla is now able to operate autonomously under Texas law by self-certifying, and with the potentially imminent rollout of Cybercab, Tesla’s autonomous dreams are starting to take serious shape.
Elon Musk
The Tesla and SpaceX merger everyone is talking about is quietly building
Tesla and SpaceX may be closer to merging than Wall Street or either company is admitting.
Elon Musk has reportedly discussed merging Tesla and SpaceX with people close to him, according to CNBC, which cited sources familiar with the conversation. Tesla employees have long expected such a transaction and the topic is openly discussed internally, according to internal sources. With SpaceX is days away from kicking off its Wall Street roadshow for what could be the largest IPO in market history, this would be the first time the company will have public market currency to execute a stock-for-stock deal with Tesla.
The financial logic for a merger would make sense. A combined SpaceX and Tesla would create a conglomerate spanning rockets, satellites, electric vehicles, AI infrastructure, and energy storage valued at roughly $3.35 trillion to $3.6 trillion based on SpaceX’s IPO target range and Tesla’s current market capitalization. The two companies are already more intertwined than most people realize. SpaceX bought $697 million worth of Tesla Megapack systems for xAI data centers and $131 million worth of Cybertrucks. Tesla invested $2 billion in xAI, which subsequently merged with SpaceX. Past transactions also include Tesla selling solar equipment and parts to SpaceX, and SpaceX helping with Cybertruck materials.
Will Tesla join the fold? Predicting a triple merger with SpaceX and xAI
Musk himself signaled where this was heading in November 2025 when he posted on X, “My companies are, surprisingly in some ways, trending towards convergence.” Tesla and SpaceX announced a joint semiconductor fabrication facility in Austin called Terafab on the Gigafactory Texas campus, covering two advanced chip factories, with one serving Tesla’s AI needs for vehicles and Optimus robots, the other targeting space-based data centers under SpaceX’s infrastructure vision.
Wedbush analyst Dan Ives places the probability of a merger at 80% to 90% with a target completion in the first half of 2027. The mechanics of a deal became possible the moment SpaceX filed its S-1. Legal experts said a merger likely would not spark antitrust issues but would raise concerns among shareholders in each company, with questions around which company would be the parent, how a stock swap would take place, and who determines the appropriate price. Musk holds about 20% of Tesla’s equity but controls 85.1% of SpaceX’s voting power through a super-voting share class, meaning he would largely be negotiating the terms with himself.
Not everyone is convinced the timing is imminent. Traders on Kalshi place only 33% odds that a merger will happen before May 2027. The more immediate concern for Tesla shareholders is whether the SpaceX IPO pulls capital and Musk’s attention away from Tesla before any merger consolidates the upside for both.
What is clear is that the structural groundwork is already being laid. The Terafab announcement, the xAI merger, the shared supply chain, the cross-company balance sheet transactions, and now the IPO all point in the same direction. Whether the merger follows in 2027 or later, the two companies are already operating more like divisions of a single entity than independent competitors.
Elon Musk strikes down reports on SpaceX IPO rumors
Tesla’s Robotaxi dreams just took a massive step toward reality
