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Opinion: Tesla FSD Beta critics’ pearl-clutching and outrage are getting ridiculous
Tesla’s “Request Full Self-Driving Beta” button is here, and so is the Fear Uncertainty and Doubt (FUD). Over the weekend, Tesla owners with qualified vehicles and who purchased the company’s Full Self-Drivings suite were able to press a button that would allow them to apply for a slot in the company’s soon-to-be-expanded FSD Beta program. The company also launched its Safety Score system as a way to help determine which of its customers are safe drivers.
True to form, it did not take long before Tesla critics pounced on the “Request FSD Beta” button and the company’s “Safety Score” system. Pretty soon, even a US Senator joined the fray in condemning the FSD Beta program. While this is not a surprise and almost expected considering Tesla’s history, it must be said that this time, the pearl-clutching and outrage from the company’s critics are getting quite ridiculous.
Tesla’s Strategy
To get proper context on the FSD Beta expansion, one must know how Tesla started the program in the first place. The FSD Beta program was launched in October 2020, and for nearly a year, it was limited to just about 2,000 drivers. These drivers have accumulated valuable real-world data over the past 11 months, and none were involved in an accident. This effectively did two things: one; it proved that the FSD Beta program is feasible, and two; it set a very high bar for the rest of the FSD Beta rollout.
Expanding the FSD Beta program requires tons of caution. Thus, it was no surprise that the company launched a Safety Rating system designed to evaluate the driving behavior of Tesla owners. This effectively gave the company a rather objective way to evaluate which drivers could participate in the FSD Beta program expansion. It should also be noted that owners who qualify for the program would not be using a consumer release version of the Full Self-Driving suite. They would simply be part of the FSD Beta test program.
Clutching Pearls
This fact seems to have escaped some of the media coverage about the FSD Beta program expansion. Bloomberg, for one, ran with a headline that read “Tesla Starts Judging Owners It Charged $10,000 for Self-Driving.” This premise is quite incorrect as the $10,000 Full Self Driving suite being sold by Tesla is a consumer release product, not the advanced driver-assist system that would be used by owners who qualify for the FSD Beta program. Despite this, sentiments opposing the program, as well as the Safety Score system, have been quite evident among the company’s critics.
Such a misinformed take was evident in a Twitter post shared by US Senator Richard Blumenthal, who noted that Tesla was “putting untrained drivers on public roads as testers for their misleadingly-named, unproven system.” The Senator added that the FSD Beta strategy is a “seeming recipe for disaster” as the company is playing “Russian Roulette for unsuspecting drivers & the public.” Interestingly enough, the politician also cited a tweet from CNBC, which included an article that is, in many ways, slanted against the EV maker.
Outdated Information
Wrong takes on hot topics are typically due to outdated information, and in the case of US Senator Blumenthal, this might be the case. Back in 2018, the politician rode in a Model 3 with Consumer Reports Head of Auto Testing Jake Fisher, who was operating a version of Tesla’s Autopilot that is now incredibly outdated. During the drive, Fisher was quick to point out what capabilities Autopilot was lacking, all while operating the system without his hands on the wheel.
Consumer Reports is hardly a Tesla authority considering that the magazine, which prides itself on consumer advocacy, quite literally featured a thorough walkthrough on how to abuse Tesla’s Autopilot system back in April using defeat devices and a variety of tricks. If Blumenthal is basing his take on Tesla on CNBC‘s recent reporting — which was slanted negatively against the EV maker — and his past experiences with Consumer Reports — which operates Autopilot irresponsibly — then it is no wonder that he is skeptical about the FSD Beta test expansion.
The Irony of it All
The most ironic thing about the pearl-clutching and outrage among Tesla critics today is the fact that the “Request FSD Beta” button essentially does nothing for now. It does not make owners who press the button automatic FSD Beta testers. They’d have to have great Safety Scores for that. And due to the presence of Safety Scores, Tesla owners who wish to participate in the FSD Beta program are now driving safer than ever before. The company effectively incentivized safe driving this weekend, and somehow, it was still met with a ton of negativity.
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Also ironic is the fact that statistics are on Tesla’s side. Take the well-publicized NHTSA investigation on Autopilot crashing into stationary emergency vehicles, for example. When the probe was launched, the news was extensively covered with headlines like CNN‘s “Tesla is under investigation because its cars can’t stop hitting emergency vehicles.” But while such headlines are compelling, the fact is that the US Government Accountability Office (GAO) report notes that there are about 8,000 stationary emergency vehicle crash injuries per year. Tesla had nine crash injuries with stationary first responder vehicles in the last 12 months, and some of those involved drivers who were not paying attention to the road.
The NHTSA notes that there are about 2,740,000 crash injuries in the United States per year, and there’s hardly any outrage for the human lives included in this grim statistic. Tesla’s Full Self-Driving system, which generally drives very conservatively, could effectively reduce this number by a notable margin. It is then quite disappointing to see the narrative being formed around the expansion of the FSD Beta program, especially considering that the advanced driver-assist system would only be released for owners who generally drive safely.
Valid Tesla Criticism
Interestingly enough, there are actual valid angles of criticism for Tesla’s FSD Beta rollout. The program for now is vastly focused on the United States, but the company sells the FSD suite to owners worldwide. It would then be beneficial to Tesla owners if the program’s expansion is expedited to areas such as Canada and Europe, to name a few. FSD, after all, is intended to be a universal system that should be capable of operating anywhere. Following this logic, FSD Beta must be tested on a wider set of areas as well — as soon as possible.
There are also Tesla owners who purchased the Full Self-Driving suite years ago on vehicles that are still equipped with MCU1 units. Some of these vehicles are already coming out of warranty, and their owners are yet to enjoy any FSD features since most of the advanced driver-assist system’s functions today require an MCU2 unit. Considering that Tesla owners were promised that their cars would be equipped with the hardware necessary for Full Self-Driving with an FSD suite purchase, it would only be right for Tesla to expedite MCU1 to MCU2 retrofits for owners with vehicles that were produced from March 2018 or earlier.
But misrepresenting the FSD Beta program expansion and criticizing the Safety Score system, that’s a far harder sell.
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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.
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.
Venture capitalist Chamath Palihapitiya has cautioned investors shorting SpaceX shares, drawing a direct parallel to the intense short-selling pressure Tesla faced in its early public years.
Responding to reports of elevated short interest in the newly public rocket, satellite, and AI company, Palihapitiya noted that similar dynamics played out with Tesla, where aggressive short sellers ultimately “went broke.”
SpaceX (NASDAQ: SPCX) went public on June 12, 2026, in the largest IPO on record, pricing at $135 per share. Shares quickly surged to an all-time high of $225.64 just days later, briefly implying a valuation exceeding $2 trillion. The stock has since retreated sharply amid valuation concerns, lockup expiration fears, and broader market dynamics.
By early August, it traded near $108–$125, representing a roughly 50 percent decline from the peak and bringing the market capitalization closer to the $1.5–1.7 trillion range. On August 4, shares closed up more than 9 percent at $125.33 ahead of earnings before facing pressure in after-hours and premarket trading.
Short interest has climbed dramatically. According to S3 Partners data widely cited in market reports, short positions reached approximately 219.3 million shares by late July, about 34 percent of the limited public float of roughly 640 million shares, and represented a notional value of around $24.6 billion.
Utilization of shares available to borrow hit 95 percent, with borrow fees rising. This level of shorting exceeded the dollar value of short bets against Tesla at the time and built rapidly ahead of two catalysts: the company’s first post-IPO earnings and an August 6 lockup expiration that could free up to 911.5 million additional shares.
CEO Elon Musk has issued warnings of his own. In mid-July, as short interest approached one-third of the float, he posted that “the survival probability of firms who maintain a significant short position in SpaceX over time is very low,” reiterating his view that the company could ultimately be worth more than Earth if it achieves its goals.
On August 4, just before earnings, Musk responded to the latest short-interest data by saying, “I try to warn them, but they just double down.”
SpaceX delivered its first quarterly results as a public company after the close on August 4. Second-quarter revenue rose 92 percent year-over-year to $7.8 billion, beating consensus estimates near $6.8–6.9 billion.
The net loss narrowed to $541 million, or 9 cents per share, better than the roughly 23–24 cent loss expected. Starlink/connectivity contributed about $4.3 billion (up 66 percent), while the AI business generated $2.6 billion (up roughly 250 percent). Capital expenditures were heavy at $18.4 billion, largely tied to AI infrastructure. Management projected a $100 billion annualized revenue run rate by year-end 2026 and outlined a path toward $1 trillion in annual revenue by 2030.
The combination of Chamath’s historical reminder, Musk’s repeated alerts, and the company’s ambitious growth targets underscores the high-stakes debate surrounding SPCX. Short sellers are positioned for near-term supply pressure from the lockup, while long-term bulls point to Starlink scale, Starship progress, and AI compute expansion as reasons the bears may ultimately face the same fate as many early Tesla skeptics.
Investor's Corner
SpaceX and Nvidia team up on Musk’s orbital AI bet
SpaceX revealed a new Nvidia satellite partnership, then Musk pledged an exclusive Nvidia hardware commitment.
SpaceX and Nvidia are now working together on the hardware that will power Musk’s orbital data center ambitions. SpaceX announced on X on Tuesday that it is partnering with Nvidia to design the compute payload for Starmind AI1, the first satellite in a planned constellation built to run AI workloads directly in orbit. Each Starmind satellite will carry Nvidia’s Rubin GPUs and Vera CPUs, according to the post, which included renderings of the payload design.
The announcement landed hours before SpaceX’s first earnings call as a public company, where Musk went further, saying the company has committed to building its AI infrastructure exclusively on Nvidia hardware. “We think the Vera Rubin architecture is the best architecture. We think it’s the best AI computer, and we greatly value our close cooperation and partnership on many levels with Nvidia,” Musk told investors on the call,. “So we’re exclusive to Nvidia.”
Musk said SpaceX plans to deploy Nvidia’s Vera Rubin NVL72 rackscale system, codenamed Kyber, both on the ground and in space. He set a target of 2 gigawatts of compute capacity online by the end of this year, scaling to roughly 10 gigawatts by the end of 2027.
SpaceX’s newest Starmind will make earth data centers obsolete
Starmind has been in development since Musk confirmed the name in June, following an xAI trademark filing that tipped off the project before SpaceX made it official. The idea is massive in scope and instead of moving data down to ground based servers, satellites equipped with onboard processors and large solar arrays would compute AI workloads in orbit and beam results back to Earth. SpaceX has already filed with the FCC for a constellation of up to one million satellites to support the effort, citing constant solar power and the absence of zoning restrictions as advantages over terrestrial data centers.
The Nvidia exclusivity marks a shift in tone from just two weeks ago, when Musk was busy knocking down a report that SpaceX had ordered $52 billion worth of Nvidia GPUs through Foxconn, calling it fake news at the time. The dollar figure in that rumor may have been wrong, but the underlying direction seems correct. SpaceX’s AI division already leases Colossus compute capacity to Anthropic and Google, and Tuesday’s earnings report showed AI revenue climbing sharply as those deals ramp up.
Nvidia shares rose roughly 3% in Tuesday trading on the news, while SpaceX stock climbed nearly 9% during the day before giving back gains after hours as investors digested the earnings report’s capital spending figures.
SpaceX is coming for wireless giants with Starlink Mobile
SpaceX shorts get warned by Musk ally, echoing Tesla’s early struggles
