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Tesla has a misinformation problem, and silence may no longer be enough
During the first quarter earnings call, Lars Moravy, Tesla’s vice president of vehicle engineering, stated that the company is hard at work cooperating with local authorities and agencies like the NTSB and the NHTSA to investigate a fatal Model S crash in Texas earlier this month. Moravy’s statements provided some new insights into the ongoing investigation, particularly when he mentioned that Tesla did a study to see how the company’s technologies operate in the area of the accident.
“We did a study with them over the past week to understand what happened in that particular crash. And what we’ve learned from that effort was that Autosteer did not and could not engage on the road condition that — as it was designed. Our adaptive cruise control only engages when a driver was buckled in about 5 miles per hour. And it only accelerated to 30 miles per hour with the distance before the car crashed,” he said.
A look at Moravy’s statements shows that Tesla’s adaptive cruise control could only accelerate to 30 mph in the distance that the ill-fated Model S covered before it smashed into a tree. This goes against initial reports stating that the vehicle had been involved in a high-speed crash. The state of the Model S when authorities found it also hinted that the car collided with the tree at speeds beyond 30 mph. Moravy’s statement was clear enough, but apparently, it was not clear enough for some — and it’s causing even US congressmen to become misinformed about the issue.
Despite early claims by #Tesla #ElonMusk, autopilot WAS engaged in tragic crash in The Woodlands.
We need answers. https://t.co/e3TQTRv72Z
— Kevin Brady (@RepKevinBrady) April 28, 2021
Misreporting Spreads Quickly
Rep. Kevin Brady recently shared an article on his Twitter page which featured Moravy’s statement from the Q1 earnings call. The only problem was that the article Brady shared misunderstood the Tesla executive’s statement, with the article alleging that “at least one Tesla Autopilot feature was active” during the fatal Tesla crash. This, of course, is completely inaccurate, and EV owners and Tesla Twitter pointed it out as such. Moravy, after all, was referring to a test that the company ran, not the findings of the investigation, which is still ongoing.
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Unfortunately, the US congressman seemed unconvinced. Despite the wave of corrections from the EV community and Tesla owners, or just Twitter users who actually bothered to listen and read the Q1 earnings call transcript, Brady argued in a later tweet that the source of his information was Tesla itself. And this, in a lot of ways, brings up a can of worms for the electric car maker and its longtime supporters.
Uh…Tesla. (Read the article, Sparky)
— Kevin Brady (@RepKevinBrady) April 28, 2021
Misinformation must be corrected
This is not the first time that Tesla has found itself on the receiving end of inaccurate reporting. Tesla has always battled misinformation since its early days, from reports claiming that the Model S was vaporware to ones claiming that Giga Shanghai was just an empty shell where Model 3s from Fremont were being stored. But while most of the misreporting surrounding Tesla is now expected by those following the company, and while some of this misinformation is almost humorous — such as a usually-critical Tesla reporter arguing that the Powerwall does not exist because she has never seen one in person — some stories require a more active hand.
Granted, Elon Musk has made his stance clear on advertising, or, as the CEO noted on Twitter, “manipulating public opinion.” However, it is not too difficult to see that Tesla will be fighting an unnecessarily uphill battle against misinformation if it does not have a way to make the correct information public. Musk has also stated on Twitter that “I trust the people,” which is no surprise considering his optimism. However, people are also very easy to manipulate, especially if they are immersed, for the most part, in misinformation.
Other companies spend money on advertising & manipulating public opinion, Tesla focuses on the product.
I trust the people.
— Elon Musk (@elonmusk) April 27, 2021
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Not-a-PR Team
If there is anything that the ongoing misinformation surrounding the tragic Texas crash has shown, it is that Tesla may need a better strategy than just staying silent until an inaccurate story dies. This does not have to come in the form of a dedicated PR team or advertisements either, as those are strategies that have worked for companies that are almost antithetical to Tesla. Either way, the EV community may find it advantageous if something could be done about the ongoing inaccurate reports and allegations being thrown against the company. Perhaps Tesla could find a solution that meets these needs while staying true to its out-of-the-box character.
Tesla is a creative company that is unorthodox and bold enough that it decided to build a vehicle assembly line in a sprung structure to meet its goals. With this in mind, there is a pretty good chance that Tesla could find a workaround for its misinformation problem. Before this could happen, of course, Tesla would first have to admit that something more than silence is needed to usher in the company towards new heights.
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Elon Musk has declared that SpaceX has effectively solved one of Starship’s most persistent engineering challenges: the reliability of its heat shield tiles.
During the company’s first-ever Earnings Call, the SpaceX CEO stated:
“I don’t want to jinx it or anything, but I think I would call the heat shield problem solved at this point. All indications from data and visual inspection is we have solved it. That doesn’t mean we won’t make improvements, but we do not see any technical obstacles to achieving rapid reusability at this point.”
Starship’s heat shield consists of roughly 18,000 hexagonal ceramic tiles covering the windward side of the upper stage. These tiles form the thermal protection system that shields the vehicle’s stainless-steel structure from the extreme heat of atmospheric reentry.
Elon says he believes the heat shield problem with Starship is currently solved.
He called it “arguably the single biggest problem” pic.twitter.com/eEE9vM5zlz
— TESLARATI (@Teslarati) August 4, 2026
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During descent, atmospheric friction generates temperatures exceeding several thousand degrees Celsius and creates plasma flows capable of melting unprotected metal. The tiles absorb, radiate, and insulate against this energy, allowing the vehicle to survive and potentially fly again. Without a durable heat shield, full and rapid reusability, the cornerstone of Starship’s design for frequent launches, satellite deployments, and deep-space missions, would remain impossible.
The tiles have long been a source of difficulty. On earlier test flights, a significant number of tiles detached during ascent due to vibration, aerodynamic loads, and imperfect attachment methods using pins and adhesives. Gaps between tiles allowed hot plasma to infiltrate, causing secondary damage and hot spots on the underlying structure.
These issues echoed challenges faced by NASA’s Space Shuttle, whose ceramic tiles required extensive, labor-intensive inspections and replacements between missions, preventing rapid turnaround. SpaceX has iteratively improved materials, standardized tile shapes, refined attachment techniques, added secondary ablative layers, and tested sealing methods such as “crunch wrap” felt to close gaps.
Progress was visible across Flights 10–12, with steadily better tile retention, yet questions remained about whether the system could support the minimal-refurbishment goal of rapid reuse.
Flight 13 on July 24 provided the decisive evidence. Ship 40 flew a deliberately more demanding profile with higher dynamic pressure to stress the heat shield beyond typical operational loads. It successfully deployed 20 operational Starlink V3 satellites, the first such payload on a Starship mission, performed an in-space Raptor engine relight, and executed a controlled reentry.
Elon Musk sheds two new bits of detail on Starship after 13th test launch
Cameras on six of the satellites and onboard sensors captured extensive imagery and data of the shield throughout the flight. The ship then achieved its softest splashdown to date in the Indian Ocean, remaining intact and floating rather than breaking apart or exploding as on prior missions. This allowed drone inspections and continuous telemetry of the heat shield in near-real time.
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Post-flight analysis showed the majority of tiles remaining attached with only minor damage and limited plasma streaking at seams. Musk noted that the mission delivered “all the heat shield data we needed and then some.” Combined with visual inspections, these results underpinned his subsequent assessment that the core technical barriers to rapid reusability have been cleared. While refinements will continue, Flight 13 marked a pivotal step toward Starship’s operational future.
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.
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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.
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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.
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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.
SpaceX has solved Starship’s biggest challenge, Elon Musk says
SpaceX is coming for wireless giants with Starlink Mobile
