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Tesla Model S Plaid totaled by Service Center employee, leaving owner without answers

Credit: Teslarati

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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.”

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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.

 

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.

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.

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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.”

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tesla model s plaid crash service center

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)

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.

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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Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Elon Musk

Tesla finally clarifies fatal Texas crash, confirms driver manually overrode acceleration

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Credit: CNBC

Tesla has finally clarified the situation regarding the viral crash in Texas where a Model 3 slammed into a home.

CEO Elon Musk replied to reports on Monday that stated the crash was due to the company’s Full Self-Driving or Autopilot suite, which seemed unlikely to those who are familiar with it. Video showed the car slamming into a house at an excessive rate of speed, making it highly unlikely the crash was due to the suite’s operation, as it does not travel at those speeds in residential areas.

Musk said:

“This makes no sense. FSD drives slowly through neighborhood streets, and this was a high-speed crash!”

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Tesla’s Head of AI, Ashok Elluswamy, added context, revealing that the company’s data shows the driver “manually overrode self-driving by pressing the accelerator all the way to 100%.”

He revealed the speed reached by the car was 73 MPH, and the accelerator was still pressed “even after the crash.”

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Authorities are reportedly investigating “whether Tesla’s Autopilot system played a role after a Model 3 left the roadway…slammed through a brick house at high speed and fatally struck Matha Avila as she sat inside,” the New York Post reported.

The National Highway Traffic Safety Administration (NHTSA) is now investigating the crash. Tesla will work with the agency to provide them with whatever information they need in order to clarify the cause of the crash.

Similarly, Tesla had claims of a fatal accident in Harris County, Texas, a few years ago. Early reports indicated that Full Self-Driving was the cause of the crash. After the National Transportation Safety Board (NTSB) worked with Tesla, the agency proved there was “no use of the Autopilot system at any time during this ownership period of the vehicle, including the time frame up to the last transmitted timestamp on April 17, 2021.”

Tesla alleged “driverless” crash in Texas: What is known so far

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“Application of the accelerator pedal was found to be as high as 98.8 percent,” the NTSB said in their findings. The highest recorded speed in the five seconds leading up to the impact was 67 miles per hour. The area where the crash occurred is residential, and Texas State laws have default speed limits of 30 MPH in residential streets.

This appears to be a similar situation. However, an investigation will prove what happened for sure.

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Investor's Corner

SpaceX makes $20 billion move to optimize its balance sheet

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Credit: SpaceX

SpaceX announced today that it commenced its first-ever public bond offering, marking a significant step in the newly public company’s capital markets strategy.

The company announced an offering of senior unsecured notes expected to raise at least $20 billion.

The move comes just a short time after SpaceX completed one of the largest initial public offerings in history. In mid-June, the company priced shares at $135 and raised more than $85 billion, propelling founder Elon Musk’s net worth past the trillion-dollar mark and giving the firm substantial liquidity.

According to the company’s SEC filing, the net proceeds from the notes will be used primarily to repay in full the outstanding borrowings under its existing bridge loan facility, cover related fees and expenses, and fund general corporate purposes. The offering is being conducted under Rule 144A, as well as Regulation S, targeting qualified institutional buyers and non-U.S. investors. Notes will be unsecured obligations ranking equally with other unsubordinated debt.

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The $20 billion bridge loan was used to refinance approximately $17.5 billion in higher-cost “junk” debt tied to X and xAI. SpaceX had merged with xAI in February 2026 in an all-stock deal. The bridge facility, which matures in September 2027, had represented the bulk of SpaceX’s long-term debt.

SpaceX officially acquires xAI, merging rockets with AI expertise

In connection with the bond launch, SpaceX disclosed it held approximately $100.8 billion in cash and cash equivalents as of June 19. Investor calls began on the announcement date, with pricing and launch expected shortly thereafter. Rating agencies have assigned investment-grade ratings to the proposed bonds, reflecting confidence in SpaceX’s dominant position in commercial launches and the growth trajectory of its Starlink internet offering.

The debt raise also allows SpaceX to optimize its balance sheet by replacing short-term, higher-cost bridge financing with longer-date, lower-cost fixed-income securities. This provides greater financial flexibility to support capital-intensive initiatives, including the development of Starship, the expansion of the Starlink constellation, and the integration of AI capabilities following the xAI combination.

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SpaceX shares (NASDAQ: SPCX) fell sharply on the news, dropping over 16 percent overall on the market on Monday. The stock had surged initially after debuting but pulled back amid profit-taking and broader market dynamics.

Overall, the bond offering underscores SpaceX’s transition to a mature public company with access to diverse funding sources. It positions the firm to pursue its long-term vision of multiplanetary expansion and AI infrastructure, while maintaining a disciplined approach to its capital structure in a high-growth but capital-heavy industry.

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Elon Musk

SpaceX confirms third massive compute deal at Colossus data center

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Credit: xAI Memphis

SpaceX confirmed today that it has officially signed its third massive compute deal, providing compute at its Colossus data center in Southaven, Tennessee.

Reflection AI will gain immediate access to NVIDIA GB300 chips at SpaceX’s Colossus 2 data center. In return, Reflection will pay SpaceX $150 million per month starting on July 1, with total payments reaching approximately $6.3 billion if the contract runs through its duration, which is until 2029. Either party can terminate the agreement with 90 days’ notice after the initial three-month period.

CNBC first reported the deal.

This latest partnership highlights SpaceX’s strategy of commercializing its massive Colossus supercomputing infrastructure, originally developed to power Elon Musk’s Grok AI models. The company has rapidly expanded its customer base in the AI sector following its February 2026 merger with xAI, a transaction that valued the combined entity at $1.25 trillion.

SpaceX has previously signed significant compute deals with other major players.

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It granted Anthropic exclusive access to the full capacity of its Colossus 1 data center, which exceeds 300 megawatts and includes over 220,000 NVIDIA GPUs. Details from SpaceX’s IPO filings indicate Anthropic will pay $1.25 billion per month through May 2029, potentially generating around $45 billion over the term of the deal.

Additionally, Google agreed to pay SpaceX $920 million per month for compute capacity from October 2026 through June 2029. This 32-month period will provide Google access to roughly 110,000 NVIDIA GPUs, along with supporting processors and memory. Capacity ramps up through September at a reduced fee, with termination options after the first year.

SpaceXA also established arrangements for computing power with Cursor, an AI coding startup. SpaceX acquired them in a $60 billion all-stock deal.

SpaceX makes first acquisition post-IPO

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These arrangements position SpaceX’s collective position as an AI infrastructure powerhouse with high-margin revenue potential. The Google deal alone could generate nearly $29.5 billion over its term, while the Reflection contract adds another $6.3 billion.

Combined with the Anthropic arrangement, SpaceX stands to realize tens of billions in revenue from compute leasing in the coming years, which diversifies beyond SpaceX’s traditional rocket launches and Starlink operation.

The deals underscore growing demand for advanced AI training and inference capacity amid chip shortages and surging model development needs. Reflection, valued at $25 billion and focused on “American open intelligence” with government and national security ties, cited recent restrictions on closed models as validation for open-source approaches.

For SpaceX, the partnerships transform capital-intensive data centers into flexible revenue sources while supporting its broader AI ambitions after the company has gone public.

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