News
Tesla Model S firetruck crash in California: What we know so far
All eyes are on Tesla once more, after a Model S traveling at highway speeds crashed into a parked fire truck in Culver City, California earlier this week. The collision, which allegedly happened while the car was on Autopilot, has incited renewed debates, criticisms, and an upcoming government probe on Tesla and its evolving driving-assist software.
As more details about the accident emerge, here is a brief discussion on the latest and most pertinent information relating to the recent Model S collision.
The accident
As we stated in a previous report, the Tesla Model S was traveling at 65 mph on Interstate 405 on Monday morning when it crashed into a stationary fire truck. The emergency vehicle was parked on the road after being deployed to a separate accident in the area.
The driver of the electric car was able to walk away unharmed from the accident. Upon being questioned by the authorities, the Model S driver stated that the vehicle was on Autopilot when it collided with the parked fire truck. Tesla released a brief statement on Monday, stating that Autopilot is intended only to be used by an attentive driver.
More details emerge
As the online forum community continued to debate about the benefits and risks of Tesla’s Autopilot software, a member of the r/TeslaMotors subreddit who claimed to know the driver of the crashed Model S spoke up and provided some details about the accident. According to the Redditor, the Model S was traveling behind a pickup truck with Autopilot engaged. Due to the truck’s size, the Tesla’s driver was unable to see beyond the vehicle in front.
“The driver of the Tesla is my dad’s friend. He said that he was behind a pickup truck with AP engaged. The pickup truck suddenly swerved into the right lane because of the firetruck parked ahead. Because the pickup truck was too high to see over, he didn’t have enough time to react.” notes mikhpat.

Tesla Model S crashes into a stationary firetruck [Credit: Culver City Fire Department via Twitter]
Tesla’s Autopilot system allegedly did not have enough time to react while driving at 65 mph. The driver stated that the Model S’ emergency braking system might have activated moments before the car hit the emergency vehicle, but he could not be certain, according to mikhpat‘s statement.
“As for the 65mph detail, the braking system could’ve intervened before the collision, but there’s no way he could tell.”
The impact was strong enough to push the steering wheel two feet into the cabin, however. The Model S driver had some minor cuts and bruises from the accident but was otherwise unharmed. According to the Redditor, the driver admits that he was at fault for not paying close attention to the road. The Model S owner also refused to blame Tesla for the accident.
While it’s still unconfirmed if Tesla’s Autopilot suite, including Traffic-Aware Cruise Control and Autosteer, was activated at the time of the accident, Tesla’s Model S Owner’s Manual warns of a similar scenario that would not be detected by the driving-assist system.
According to the About Drive Assistance section of the owner’s manual:
“Traffic-Aware Cruise Control cannot detect all objects and may not brake/decelerate for stationary vehicles, especially in situations when you are driving over 50 mph (80 km/h) and a vehicle you are following moves out of your driving path and a stationary vehicle or object is in front of you instead.”
The warning appears to mimic the exact situation being described by Redditor mikhpat.
The investigations begin
As the online forum community exploded amidst heated debates on who is to blame for the recent Model S collision, the US National Transportation Safety Board announced that it is sending two of its investigators to California to study the crash. According to the NTSB, the investigators will be examining both “driver and vehicle” factors in Monday’s accident.
By Tuesday, the National Highway Traffic Safety Administration announced that it is also sending a team of investigators to California to evaluate the recent accident, as well as to assess any “lessons learned” from the crash, as noted in a Bloomberg report. The NHTSA did not specify which team of investigators it was sending to California, but expectations are high that the regulating body would be deploying its Special Crash Investigations unit.
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.
