News
Tesla Model S Plaid totaled by Service Center employee, leaving owner without answers
Update 9/9/22 12:32 P.M. EST: Jeff contacted me personally and told me Tesla has officially shipped a Model S Plaid identical to his now-totaled vehicle. “I just got a call from Tesla, a clone of my Model S Plaid is on the truck heading for Texas as I text you today.”
A $155,000 Tesla Model S Plaid was totaled several days after the owner dropped the vehicle off for a Service appointment. Now, the owner is attempting to find answers.
After dropping his Model S Plaid with only a few thousand miles off at the Plano, Texas Tesla Service Center on Wednesday, August 24, owner Jeff said he received a call on Tuesday, August 30, from an employee. “We have some bad news,” Jeff heard over the phone. “Your car was totaled.”
“I thought it was a joke,” Jeff told Teslarati in an interview. “I found out very soon it was not a joke.”
After arriving at the Service Center the next day, on Wednesday, August 31, Jeff found his black Model S Plaid in the parking lot. The rear passenger door smashed in, and visibility into the vehicle was limited due to many airbags in the car being deployed. The vehicle had been t-boned by another car traveling just two blocks from the Service Center, located at 5800 Democracy Drive in Plano. The repair had already been completed and an employee was driving the vehicle around to ensure it was completed properly.
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- Credit: Teslarati
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- Credit: Teslarati
However, the driver of the Model S Plaid, a 31-year-old employee of the Plano Service Center, failed to yield the right of way at a stop sign and was hit by another car. The Model S Plaid was totaled in the accident.
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Initially, Jeff was interested in receiving a new car, of course, and there happened to be an exact match of what his Plaid Model S once was at another showroom in the State. He was offered that vehicle on Wednesday, but by Thursday, that had changed. Tesla said they would likely go through insurance, meaning it would take nearly three weeks to get Jeff his vehicle.
The Legalities of the Situation
Teslarati spoke to insurance experts and liability attorneys, who told us the situation in which the vehicle was totaled and determining liability is what truly matters. The fact that this is a customer’s car and an employee crashed it is irrelevant until liability is determined.
We obtained the police report through the City of Plano, which revealed the employee at the Tesla Service Center was at fault. Jeff also told us that when he spoke to the employee driving the vehicle at the time of the accident, they admitted that the accident was his fault.
The report states that the driver of the Model S was officially charged with Failure to Yield the Right of Way at a Stop Sign. The investigating officer describes the accident in the report:
“UNIT 1 WAS STOPPED AT A STOP SIGN IN LANE 2 E/B DEMOCRACY DRIVE FOR PARKWOOD BLVD. UNIT 1 THEN PROCEEDED THROUGH THE INTERSECTION. UNIT 2 WAS N/B PARKWOOD BLVD IN THE RIGHT LANE. DUE TO UNIT 1 FAILING TO YIELD RIGHT OF WAY AT A STOP SIGN TO UNIT 2, THE FRONT END OF UNIT 2 STRUCK THE RIGHT BACK QUARTER OF UNIT 1.”
Illustration of the accident: Unit 1 is the Tesla Model S, while Unit 2 is the Audi A5. Unit 1 is the vehicle at fault, City of Plano officials told Teslarati. (Credit: Teslarati)
The report, obtained by Teslarati, shows there was a second occupant in the Tesla at the time of the crash. The driver is 33. The passenger is 31. Additionally, the Audi A5 that collided with the Tesla was being driven by a 62-year-old who was taken to Plano Presbyterian Hospital.
What’s Next
Tesla has been tight-lipped to Jeff, saying they would be in touch with him regarding the accident within the next three weeks. Tesla may have been attempting to determine liability as its employee who was driving the vehicle may not necessarily be responsible for the accident, especially considering he was t-boned while navigating through an intersection. However, the report filed by the investigating officer determined that the driver of the Tesla was at fault, and the fact that the employee also expressed to Jeff that the accident was his fault would eliminate Tesla’s need to determine this.
Jeff said Tesla has not offered a loaner or a formal replacement vehicle currently, which makes his situation much more complicated. Teslarati reported last month that Tesla had abolished its policy of offering loaners and Uber credits for some service appointments. However, Jeff’s vehicle is totaled, he is without a replacement, and the accident did not happen while he was driving the car, or even in possession of the Model S Plaid.
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As of Tuesday, September 6, Tesla has yet to contact Jeff regarding the accident or any information on a replacement vehicle.
I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.
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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
