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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.
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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.
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Tesla CEO Elon Musk said that flying cars will be coming to the market, something that his own company has hinted at previously.
Musk said on X, in response to a post that read, “We were promised flying cars and all we got is infinite superintelligence for everyone,” “You will get flying cars.”
You will get flying cars
— Elon Musk (@elonmusk) August 12, 2026
The post rang back to when Musk teased flying and hovering capabilities for the Tesla Roadster, the company’s supercar that has been delayed more times than anyone cares to count. It was set for an unveiling earlier this year, but it was then pushed back to August. There is still no sign of it coming.
However, that does not mean it won’t. But one of the biggest features of the Roadster that was teased was a SpaceX package that featured cold gas thrusters on the rear end that would help with white-knuckle acceleration. Another set would face the ground and would help the Roadster gain small bits of altitude, potentially helpful to jump over obstacles.
Elon Musk hints at Tesla Roadster’s “hovering” abilities in SpaceX package
But it is not a straightforward thing for Musk. As a serial entrepreneur, he tends to spend his time on major disruptors; currently, his largest projects are artificial intelligence and compute power, as well as SpaceX’s launches that will eventually make life multiplanetary.
In the past, he has been critical of flying cars and has been in favor of tunnels, one of the big reasons he started the Boring Company. In 2017 at a TED talk, he said:
“There is a challenge with flying cars in that they’ll be quite noisy. The wind force generated will be very high. Let’s just say that if something’s flying over your head, if there are a whole bunch of flying cars all over the place, that is not an anxiety-reducing situation…You’re thinking, ‘Did they service their hubcap? Or is it going to come off and guillotine me as they’re flying past?'”
However, he’s never been against them. He has also said he’s in favor of both tunnels and flying cars.
Contrary to press reports, I’m not against flying cars. Just said it was important to consider both pros and cons.
— Elon Musk (@elonmusk) March 24, 2015
Most recently, Musk said that anyone who wants a flying car should be able to get one. This was stated last October on the Joe Rogan Experience:
“My friend Peter Thiel once reflected that the future was supposed to have flying cars, but we don’t have flying cars… I think if Peter wants a flying car, we should be able to buy one.”
Whether the Roadster will be Tesla’s flying car or potentially another one remains in the mind of Musk. Of course, the Roadster will have to make its way to production lines before we find out.
Elon Musk
SpaceX’s next trillion dollar bet has nothing to do with rockets, Musk tells staff
Elon Musk told SpaceX staff AI revenue will soon dwarf rockets and Starlink combined entirely.
Elon Musk told SpaceX employees this week that artificial intelligence, not rockets, will soon carry the company’s revenue. In a roughly 29 minute internal address posted on SpaceX’s X account on Tuesday, Musk said AI revenue will pass every other line of business at SpaceX “probably in September” and pull further ahead by the fourth quarter.
The numbers he gave are specific. SpaceX currently runs 1.4 gigawatts of AI compute capacity. Musk wants that at 10 gigawatts by the end of 2027, a jump he tied directly to revenue: “if we bring 10GW of AI online by the end of next year, it will be $300 billion to $500 billion a year in revenue.” He called those “big numbers,” which undersells a projection larger than what most countries produce in a year.
We made rockets reusable and are rebuilding the internet in space. The next challenge: making life multiplanetary and understanding the true nature of the universe
Watch @ElonMusk deliver a company update to @SpaceX employees pic.twitter.com/5c8rxoCQfu
— SpaceX (@SpaceX) August 11, 2026
Musk went further on where AI fits into SpaceX’s future. “Probably in four or five years, AI will be 99% of the value of SpaceX,” he told staff, adding that digital intelligence would eventually run “a trillion times” ahead of biological intelligence as computing scales. He tied that growth to the company’s founding mission, telling employees “we must win on AI, because the future is overwhelmingly AI and robots,” with the payoff meant to help fund Starship and a Mars program that increasingly runs through Terafab, the joint Tesla, SpaceX and xAI chip plant.
Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry
None of this is entirely new territory. SpaceX told investors much the same story during its first earnings call as a public company on August 4, where Musk moved the company’s $1 trillion revenue target up a year to 2030 and said Starlink could someday carry a majority of the world’s internet. What the all hands video adds is a hard deadline and a specific power figure Musk had not given publicly before, along with a franker pitch to his own workforce that AI, not launch cadence, is now the thing SpaceX is betting its future on.
The AI revenue itself is not coming from SpaceX training its own models. It is largely Starlink acting as the network layer for xAI’s workloads, plus SpaceX renting out compute capacity directly, the same approach behind the roughly $16 billion the company spent on AI infrastructure in a single quarter.
Musk closed the video with a pitch aimed at recruiting and retention rather than investors, telling employees that anyone who helps SpaceX win the AI race will eventually get the chance to go to the moon or Mars themselves. Whether SpaceX can turn 1.4 gigawatts into 10 in seventeen months is the more immediate question, and one that will show up in quarterly numbers well before anyone leaves Earth.
In a new note to investors on Tuesday, Morgan Stanley analyst Andrew Percoco said that Tesla has one big financial question to answer for investors regarding its Robotaxi rollout, Full Self-Driving software, and Optimus.
Percoco said in the note that, for the most part, investors are still very positive about the direction the company is headed. However, there are some things the firm would like to see, and they have to do with financials.
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Tesla bulls are more than convinced that the company’s Full Self-Driving software is proof it can develop physical AI. Financially, however, there are still some questions, especially on elevated spending, which CEO Elon Musk said would occur as the company works to roll out Robotaxi faster and continue developing its Optimus robot.
The latter two are where Tesla will have to prove progress to investors, as Percoco writes that both projects “will require clearer evidence that Robotaxi is scaling and more tangible Optimus proof points to support the ROI on elevated capex.”
Percoco said the second quarter earnings call did not change his long-term thesis of where Tesla is positioned in the AI race, which is out in front. However, there are concerns that weaker gross margins and higher R&D spend will stress financials, and that has “sharpened our (and investors’) focus on measurable progress across Robotaxi and Optimus.”
Additionally, Robotaxi still needs to be proven with more operation in existing cities while maintaining safety but improving how many rides it gives in any given time, he said. For Optimus, Percoco wrote that he is “still looking for evidence beyond commentary around SOP.”
Morgan Stanley put Percoco in charge of covering Tesla after long-time analyst Adam Jonas transitioned to the automotive side.
Currently, Morgan Stanley has a $415 price target on Tesla and a ‘Hold’ rating on the stock. It is trading at around $330 at the time of publication, which was 2:30 P.M. on the East Coast.
Tesla CEO Elon Musk says flying cars are coming
SpaceX’s next trillion dollar bet has nothing to do with rockets, Musk tells staff
