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Elon Musk recommends voting for a Republican Congress; is open to voting Democrat in the future. Elon Musk recommends voting for a Republican Congress; is open to voting Democrat in the future.

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Tesla confronted by U.S. Senators regarding ‘forced arbitration’

Credit: JC

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Tesla has received a public letter from a group of U.S. Senators asking the company to alter its policy regarding forced arbitration.

Tesla and its CEO, Elon Musk, are no strangers to receiving public letters from the United States Senate. Senators, notably Richard Blumenthal and Elizabeth Warren, have often raised concerns regarding the company’s policies and tactics. Now, Tesla CEO Elon Musk has received yet another letter, this one regarding Tesla’s use of “forced arbitration.”

The letter published earlier this week, initially reported by CNBC, is signed by seven Senators, including Richard Blumenthal (D, CT), Sherrod Brown (D, OH), Dick Durbin (D, IL), Ed Markey (D, MA), Jeff Merkley (D, OR) Bernie Sanders (I, VT), and Elizabeth Warren (D, MA). As noted above, the letter focuses on Tesla’s use of “forced arbitration” within employment and consumer contracts.

As the Senators’ letter pointed out, forced arbitration is nothing new within America’s largest companies. In essence, forced arbitration is added to a contract to prevent the signatory from suing the contract issuer, instead forcing them to use a private arbitration system outside the public legal system. While technically, a contract signatory can appeal the arbitration clause to a public judge; they are often forced to remain within the private system. In the case of Tesla, this is used in employment and consumer contracts.

Besides keeping employee or consumer complaints out of the public eye, according to the Senators, when a case is settled within arbitration, it can result in significantly less or no rewards granted to potential victims.

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In the case of Tesla, the group of Senators argue that this system of forced arbitration has hidden instances of sexual harassment, racial discrimination, and consumer safety issues from the public eye. As evidence of their claims, the Senators note that Tesla’s Fremont facility, in particular, has had five times the average number of lawsuits filed against it by employees, including a recent case of racial discrimination and sexual harassment.

Neither Tesla nor Elon Musk has responded publically to the allegations put forward in the letter from the Senators.

Besides asking for Tesla to end its use of forced arbitration, the Senators are also enquiring about the company’s past policy use. The senators include a laundry list of questions, including but not limited to asking how often the policy has been used, what types of suites the arbitration typically solves, and what consumer complaints have been addressed via the arbitration system.

The letter from the Senators is available below:

05082023 Tesla Forced Arbitration Letter by William Johnson on Scribd

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What do you think of the article? Do you have any comments, questions, or concerns? Shoot me an email at william@teslarati.com. You can also reach me on Twitter @WilliamWritin. If you have news tips, email us at tips@teslarati.com!

Will is an auto enthusiast, a gear head, and an EV enthusiast above all. From racing, to industry data, to the most advanced EV tech on earth, he now covers it at Teslarati.

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Tesla reveals it is using AI to make factories more sustainable: here’s how

Tesla is using AI in its Gigafactory Nevada factory to improve HVAC efficiency.

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Credit: Tesla

Tesla has revealed in its Extended Impact Report for 2024 that it is using Artificial Intelligence (AI) to enable its factories to be more sustainable. One example it used was its achievement of managing “the majority of the HVAC infrastructure at Gigafactory Nevada is now AI-controlled” last year.

In a commitment to becoming more efficient and making its production as eco-friendly as possible, Tesla has been working for years to find solutions to reduce energy consumption in its factories.

For example, in 2023, Tesla implemented optimization controls in the plastics and paint shops located at Gigafactory Texas, which increased the efficiency of natural gas consumption. Tesla plans to phase out natural gas use across its factories eventually, but for now, it prioritizes work to reduce emissions from that energy source specifically.

It also uses Hygrometric Control Logic for Air Handling Units at Giafactory Berlin, resulting in 17,000 MWh in energy savings each year. At Gigafactory Nevada, Tesla saves 9.5 GWh of energy through the use of N-Methylpyrrolidone refineries when extracting critical raw material.

Perhaps the most interesting way Tesla is conserving energy is through the use of AI at Gigafactory Nevada, as it describes its use of AI to reduce energy demand:

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“In 2023, AI Control for HVAC was expanded from Nevada and Texas to now include our Berlin-Brandenburg and Fremont factories. AI Control policy enables HVAC systems within each factory to work together to process sensor data, model factory dynamics, and apply control actions that safely minimize the energy required to support production. In 2024, this system achieved two milestones: the majority of HVAC infrastructure at Gigafactory Nevada is now AI-controlled, reducing fan and thermal energy demand; and the AI algorithm was extended to manage entire chiller plants, creating a closed-loop control system that optimizes both chilled water consumption and the energy required for its generation, all while maintaining factory conditions.”

Tesla utilizes AI Control “primarily on systems that heat or cool critical factory production spaces and equipment.” AI Control communicates with the preexisting standard control logic of each system, and any issues can be resolved by quickly reverting back to standard control. There were none in 2024.

Tesla says that it is utilizing AI to drive impact at its factories, and it has proven to be a valuable tool in reducing energy consumption at one of its facilities.

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Tesla analysts believe Musk and Trump feud will pass

Tesla CEO Elon Musk and U.S. President Donald Trump’s feud shall pass, several bulls say.

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The White House, Public domain, via Wikimedia Commons
President Donald J. Trump purchases a Tesla on the South Lawn, Tuesday, March 11, 2025. (Official White House Photo by Molly Riley)

Tesla analysts are breaking down the current feud between CEO Elon Musk and U.S. President Donald Trump, as the two continue to disagree on the “Big Beautiful Bill” and its impact on the country’s national debt.

Musk, who headed the Department of Government Efficiency (DOGE) under the Trump Administration, left his post in May. Soon thereafter, he and President Trump entered a very public and verbal disagreement, where things turned sour. They reconciled to an extent, and things seemed to be in the past.

However, the second disagreement between the two started on Monday, as Musk continued to push back on the “Big Beautiful Bill” that the Trump administration is attempting to sign into law. It would, by Musk’s estimation, increase spending and reverse the work DOGE did to trim the deficit.

President Trump has hinted that DOGE could be “the monster” that “eats Elon,” threatening to end the subsidies that SpaceX and Tesla receive. Musk has not been opposed to ending government subsidies for companies, including his own, as long as they are all abolished.

How Tesla could benefit from the ‘Big Beautiful Bill’ that axes EV subsidies

Despite this contentious back-and-forth between the two, analysts are sharing their opinions now, and a few of the more bullish Tesla observers are convinced that this feud will pass, Trump and Musk will resolve their differences as they have before, and things will return to normal.

ARK Invest’s Cathie Wood said this morning that the feud between Musk and Trump is another example of “this too shall pass:”

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Additionally, Wedbush’s Dan Ives, in a note to investors this morning, said that the situation “will settle:”

“We believe this situation will settle and at the end of the day Musk needs Trump and Trump needs Musk given the AI Arms Race going on between the US and China. The jabs between Musk and Trump will continue as the Budget rolls through Congress but Tesla investors want Musk to focus on driving Tesla and stop this political angle…which has turned into a life of its own in a roller coaster ride since the November elections.”

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Tesla shares are down about 5 percent at 3:10 p.m. on the East Coast.

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Tesla scrambles after Musk sidekick exit, CEO takes over sales

Tesla CEO Elon Musk is reportedly overseeing sales in North America and Europe, Bloomberg reports.

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Credit: Tesla

Tesla scrambled its executives around following the exit of CEO Elon Musk’s sidekick last week, Omead Afshar. Afshar was relieved of his duties as Head of Sales for both North America and Europe.

Bloomberg is reporting that Musk is now overseeing both regions for sales, according to sources familiar with the matter. Afshar left the company last week, likely due to slow sales in both markets, ending a seven-year term with the electric automaker.

Tesla’s Omead Afshar, known as Elon Musk’s right-hand man, leaves company: reports

Afshar was promoted to the role late last year as Musk was becoming more involved in the road to the White House with President Donald Trump.

Afshar, whose LinkedIn account stated he was working within the “Office of the CEO,” was known as Musk’s right-hand man for years.

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Additionally, Tom Zhu, currently the Senior Vice President of Automotive at Tesla, will oversee sales in Asia, according to the report.

It is a scramble by Tesla to get the company’s proven executives over the pain points the automaker has found halfway through the year. Sales are looking to be close to the 1.8 million vehicles the company delivered in both of the past two years.

Tesla is pivoting to pay more attention to the struggling automotive sales that it has felt over the past six months. Although it is still performing well and is the best-selling EV maker by a long way, it is struggling to find growth despite redesigning its vehicles and launching new tech and improvements within them.

The company is also looking to focus more on its deployment of autonomous tech, especially as it recently launched its Robotaxi platform in Austin just over a week ago.

Tesla officially launches Robotaxi service with no driver

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However, while this is the long-term catalyst for Tesla, sales still need some work, and it appears the company’s strategy is to put its biggest guns on its biggest problems.

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