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Tesla responds to Reuters’ claims of faulty suspension issues
Tesla has posted a rebuttal to a Reuters investigation which alleged that the company had been blaming drivers for alleged vehicle abuse despite knowing that its cars’ suspension components were faulty. The issue has caught the attention of many, including Democratic Senators Richard Blumenthal (D-Conn.) and Edward Markey (D-Mass.), both of whom have called on Tesla to initiate a recall about the reported issue.
Reuters‘ investigation indicated that Tesla had informed the NHTSA that frequent failures of components like its vehicles’ aft link were due to drive misuse. Despite this, the publication claimed that Tesla’s own engineers have tracked frequent failures of the components over the years. Tesla’s response, which was posted on X, provided a thorough rebuttal of the publication’s claims.
Tesla highlighted several issues with Reuters‘ investigation, such as its misleading headline and the lack of important context about the issue. The company also reiterated its service principles, which aim to provide the best support possible to its consumer base.
Reuters published an article that leads with a wildly misleading headline and is riddled with incomplete and demonstrably incorrect information.
This latest piece vaguely and nonsensically suggests there are thousands upon thousands of disgruntled Tesla customers. It’s…— Tesla (@Tesla) December 27, 2023
Following is Tesla’s response to Reuters‘ investigation.
Reuters published an article that leads with a wildly misleading headline and is riddled with incomplete and demonstrably incorrect information.
This latest piece vaguely and nonsensically suggests there are thousands upon thousands of disgruntled Tesla customers. It’s nonsensical because it’s nonfactual—the reality is Tesla’s customer retention is among the best and highest in the industry.
Misleading headline:
“Tesla blamed drivers for failures of parts it long knew were defective.”
Reality (buried in the article):
Tesla paid for most of the 120,000 vehicle repairs under warranty.
Manufactured story:
The customer photo represents not a failed component, but instead a post crash component that was damaged in the course of reducing the adverse effects of a collision. The customer was informed that Tesla was able to review the telemetry and understood there was a crash that resulted in this repair not being covered by warranty.
Most, if not all, manufacturer warranties exclude damages caused by a crash because that is the point of insurance coverage.
Helpful context:
Tesla has the most advanced vehicle telemetry system that can identify emerging issues, determine scope, and allow for faster vehicle and service improvements than has ever been seen in the auto industry. We take action as soon as we see a problem, something that should be celebrated as best-in-class, and is often cited by our regulators as a major safety advantage.
False accusation:
The author has conflated a noise-related (non-safety) issue with a range of unrelated and disconnected service actions. Contrary to the article’s statements based on erroneous data, Tesla is truthful and transparent with our safety regulators around the globe and any insinuation otherwise is plain wrong.
Tesla Service Principles:
a. Our service technicians and advisors diagnose, maintain and fix our customers’ cars efficiently and are not incentivized to profit off customers’ repair needs.
b. Tesla provides our service employees with excellent compensation and benefits packages. They don’t work off of commission like at other dealers who are incentivized to upsell or overcharge their customers.
c. The best service is no service. When service must be done, we fix 90%+ problems without even needing the customer present – either through over-the-air updates or with mobile service at a customer’s house or workplace.
To see Tesla’s approach in action, one can refer to this maintenance study from earlier this year, “Tesla was named the cheapest luxury car brand to maintain..” → https://autos.yahoo.com/tesla-named-cheapest-luxury-car-110000613.html
This cherry-picking approach to journalism results in missing the truth, which is a pattern in many of the negative articles about Tesla.
Using one customer’s one-sided version of events as the universal experience of all customers paints a false and misleading picture of Tesla. In reality, for every upset customer, there are hundreds more who are thrilled with their Tesla and eager to repeat their business. The numbers don’t lie in terms of repeat sales and customer satisfaction.
We strive to make every customer a lifelong member of the Tesla family.
While others may have their own agendas, our principles have been the same since the beginning: to make the safest cars in the world, which are easiest to maintain, while accelerating the world’s transition to sustainable energy.
Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.
Elon Musk
Elon Musk confirms xAI’s purchase of five 380 MW natural gas turbines
The deal, which was confirmed by Musk on X, highlights xAI’s effort to aggressively scale its operations.
xAI, Elon Musk’s artificial intelligence startup, has purchased five additional 380 MW natural gas turbines from South Korea’s Doosan Enerbility to power its growing supercomputer clusters.
The deal, which was confirmed by Musk on X, highlights xAI’s effort to aggressively scale its operations.
xAI’s turbine deal details
News of xAI’s new turbines was shared on social media platform X, with user @SemiAnalysis_ stating that the turbines were produced by South Korea’s Doosan Enerbility. As noted in an Asian Business Daily report, Doosan Enerbility announced last October that it signed a contract to supply two 380 MW gas turbines for a major U.S. tech company. Doosan later noted in December that it secured an order for three more 380 MW gas turbines.
As per the X user, the gas turbines would power an additional 600,000+ GB200 NVL72 equivalent size cluster. This should make xAI’s facilities among the largest in the world. In a reply, Elon Musk confirmed that xAI did purchase the turbines. “True,” Musk wrote in a post on X.
xAI’s ambitions
Recent reports have indicated that xAI closed an upsized $20 billion Series E funding round, exceeding the initial $15 billion target to fuel rapid infrastructure scaling and AI product development. The funding, as per the AI startup, “will accelerate our world-leading infrastructure buildout, enable the rapid development and deployment of transformative AI products.”
The company also teased the rollout of its upcoming frontier AI model. “Looking ahead, Grok 5 is currently in training, and we are focused on launching innovative new consumer and enterprise products that harness the power of Grok, Colossus, and 𝕏 to transform how we live, work, and play,” xAI wrote in a post on its website.
Elon Musk
Elon Musk’s xAI closes upsized $20B Series E funding round
xAI announced the investment round in a post on its official website.
xAI has closed an upsized $20 billion Series E funding round, exceeding the initial $15 billion target to fuel rapid infrastructure scaling and AI product development.
xAI announced the investment round in a post on its official website.
A $20 billion Series E round
As noted by the artificial intelligence startup in its post, the Series E funding round attracted a diverse group of investors, including Valor Equity Partners, Stepstone Group, Fidelity Management & Research Company, Qatar Investment Authority, MGX, and Baron Capital Group, among others.
Strategic partners NVIDIA and Cisco Investments also continued support for building the world’s largest GPU clusters.
As xAI stated, “This financing will accelerate our world-leading infrastructure buildout, enable the rapid development and deployment of transformative AI products reaching billions of users, and fuel groundbreaking research advancing xAI’s core mission: Understanding the Universe.”
xAI’s core mission
Th Series E funding builds on xAI’s previous rounds, powering Grok advancements and massive compute expansions like the Memphis supercluster. The upsized demand reflects growing recognition of xAI’s potential in frontier AI.
xAI also highlighted several of its breakthroughs in 2025, from the buildout of Colossus I and II, which ended with over 1 million H100 GPU equivalents, and the rollout of the Grok 4 Series, Grok Voice, and Grok Imagine, among others. The company also confirmed that work is already underway to train the flagship large language model’s next iteration, Grok 5.
“Looking ahead, Grok 5 is currently in training, and we are focused on launching innovative new consumer and enterprise products that harness the power of Grok, Colossus, and 𝕏 to transform how we live, work, and play,” xAI wrote.
Tesla (NASDAQ: TSLA) stock received a price target update from Pierre Ferragu of Wall Street firm New Street Research, citing the company’s growing lead in self-driving and autonomy.
On Tuesday, Ferragu bumped his price target from $520 to $600, stating that the consensus from the Consumer Electronics Show in Las Vegas was that Tesla’s lead in autonomy has been sustained, is growing, and sits at a multiple-year lead over its competitors.
CES 2026 validates Tesla’s FSD strategy, but there’s a big lag for rivals: analyst
“The signal from Vegas is loud and clear,” the analyst writes. “The industry isn’t catching up to Tesla; it is actively validating Tesla’s strategy…just with a 12-year lag.”
The note shows that the company’s prowess in vehicle autonomy is being solidified by lagging competitors that claim to have the best method. The only problem is that Tesla’s Vision-based approach, which it adopted back in 2022 with the Model 3 and Model Y initially, has been proven to be more effective than competitors’ approach, which utilizes other technology, such as LiDAR and sensors.
Currently, Tesla shares are sitting at around $433, as the company’s stock price closed at $432.96 on Tuesday afternoon.
Ferragu’s consensus on Tesla shares echoes that of other Wall Street analysts who are bullish on the company’s stock and position within the AI, autonomy, and robotics sector.
Dan Ives of Wedbush wrote in a note in mid-December that he anticipates Tesla having a massive 2026, and could reach a $3 trillion valuation this year, especially with the “AI chapter” taking hold of the narrative at the company.
Ives also said that the big step in the right direction for Tesla will be initiating production of the Cybercab, as well as expanding on the Robotaxi program through the next 12 months:
“…as full-scale volume production begins with the autonomous and robotics roadmap…The company has started to test the all-important Cybercab in Austin over the past few weeks, which is an incremental step towards launching in 2026 with important volume production of Cybercabs starting in April/May, which remains the golden goose in unlocking TSLA’s AI valuation.”
Tesla analyst breaks down delivery report: ‘A step in the right direction’
Tesla has transitioned from an automaker to a full-fledged AI company, and its Robotaxi and Cybercab programs, fueled by the Full Self-Driving suite, are leading the charge moving forward. In 2026, there are major goals the company has outlined. The first is removing Safety Drivers from vehicles in Austin, Texas, one of the areas where it operates a ride-hailing service within the U.S.
Ultimately, Tesla will aim to launch a Level 5 autonomy suite to the public in the coming years.
Elon Musk confirms xAI’s purchase of five 380 MW natural gas turbines
Elon Musk’s xAI closes upsized $20B Series E funding round
