News
Tesla ‘sabotage’ at Fremont Factory was due to a racial justice protest, claims report
Earlier this month, reports emerged that Tesla had terminated an employee at the Fremont Factory over what acting general counsel Al Prescott described as an act of “sabotage” that resulted in the facility’s operations being disrupted for a few hours. New details have now emerged suggesting that the disruption may have been caused by a racial justice protest over Breonna Taylor’s grand jury decision.
In his email to Tesla employees, Prescott stated that an employee at the Fremont Factory had attempted to “maliciously sabotage” a part of the facility. The acting general counsel did not provide many details about the incident, though he stated that the quick actions of Tesla’s IT and InfoSec teams helped prevent further damage to the facility. Prescott also shared that the employee in question was terminated over the incident.
News publication Protocol was recently able to retrieve an email from a Tesla engineer telling several colleagues that the disruption of the Fremont Factory was the result of a “peaceful direct action protest” following the grand jury decision to not charge any of the officers involved in the controversial killing of Breonna Taylor, a full-time ER technician who was fatally shot in her Louisville, Kentucky apartment on March 13, 2020, by plainclothes officers.
In his email, which was sent on September 30, the engineer noted that he wanted to offer a “brief explanation of my behavior that day and how my role at Tesla fits within the broader movement for racial, social, and economic justice.” He also asked his colleagues to forward his message to others in the factory “to whom you feel I owe an explanation.” The engineer shared some of his own experiences with police harassment in his email as well, stating that he has been pulled over, handcuffed, stopped and frisked, and even had guns drawn on him.
“I have done a substantial amount of work over the years to heal from those personal traumas. Unfortunately, the events of 2020 have punctured new wounds and old scars. But this is not about me, this is about a system that has little to no regard for Black and Brown bodies. This is about shutting down technocratic oppression in order to open up this nation’s bodily and spiritual wounds,” the engineer wrote.
While the engineer did not directly admit that he was behind the “sabotage” of the Fremont Factory’s operations, he did state in his message that such acts of “protest” usually happen as a way for people to express their pain and confusion.
“Direct action protests within the workplace often occur as a means of expressing the pain and confusion felt daily in the lives of oppressed people. As a Tesla employee, I often wonder where my role sits to advance the causes of Black and Brown liberation all while economically benefiting from the exploitation of historically marginalized Black and Brown labor on stolen Chochenyo Ohlone land,” the engineer added.
Ultimately, the engineer admitted that he does not know what will happen to him next, though he noted that he hoped that his actions would be “a catalyst for genuine change” within Tesla. He remarked that he understood that he was speaking “from a position of privilege” and that “those privileges can easily be stripped away.”
“To conclude, I have been asking myself: is Tesla a place where people who have experienced profound intergenerational trauma can work and thrive? I still don’t know the answer to that, but the next few days will acutely reveal that for me,” the engineer added.
A Tesla employee, who spoke with Protocol on the day of the incident, noted that the email’s author had been in a conference call with about a dozen engineers about the disruption. During the call, the email’s author reportedly informed that other engineers that he had resolved the issue, which led to another participant in the conference to joke if the outage was a prank. Just as noted by Tesla’s acting general counsel, the Fremont Factory was indeed returned to full working order within a few hours.
H/T Drive Tesla Canada.
News
Tesla CEO Elon Musk says flying cars are coming
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.
Investor's Corner
Tesla has one big financial question to answer for investors: Morgan Stanley
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.
