News
Tesla posts stern response to Washington Post’s article on alleged Autopilot dangers
Tesla has posted a stern response to a recent article from The Washington Post that suggested that the electric vehicle maker is putting people at risk because it allows systems like Autopilot to be deployed in areas that it was not designed for. The publication noted that it was able to identify about 40 fatal or serious crashes since 2016, and at least eight of them happened in roads where Autopilot was not designed to be used in the first place.
Overall, the Washington Post article argued that while Tesla does inform drivers that they are responsible for their vehicles while Autopilot is engaged, the company is nonetheless also at fault since it allows its driver-assist system to be deployed irresponsibly. “Even though the company has the technical ability to limit Autopilot’s availability by geography, it has taken few definitive steps to restrict use of the software,” the article read.
In its response, which was posted through its official account on X, Tesla highlighted that it is very serious about keeping both its customers and pedestrians safe. The company noted that the data is clear about the fact that systems like Autopilot, when used safety, drastically reduce the number of accidents on the road. The company also reiterated the fact that features like Traffic Aware Cruise Control are Level 2 systems, which require constant supervision from the driver.
Following is the pertinent section of Tesla’s response.
While there are many articles that do not accurately convey the nature of our safety systems, the recent Washington Post article is particularly egregious in its misstatements and lack of relevant context.
We at Tesla believe that we have a moral obligation to continue improving our already best-in-class safety systems. At the same time, we also believe it is morally indefensible not to make these systems available to a wider set of consumers, given the incontrovertible data that shows it is saving lives and preventing injury.
Regulators around the globe have a duty to protect consumers, and the Tesla team looks forward to continuing our work with them towards our common goal of eliminating as many deaths and injuries as possible on our roadways.
Below are some important facts, context and background.
Background
1. Safety metrics are emphatically stronger when Autopilot is engaged than when not engaged.
a. In the 4th quarter of 2022, we recorded one crash for every 4.85 million miles driven in which drivers were using Autopilot technology. For drivers who were not using Autopilot technology, we recorded one crash for every 1.40 million miles driven. By comparison, the most recent data available from NHTSA and FHWA (from 2021) shows that in the United States there was an automobile crash approximately every 652,000 miles.
b. The data is clear: The more automation technology offered to support the driver, the safer the driver and other road users. Anecdotes from the WaPo article come from plaintiff attorneys—cases involving significant driver misuse—and are not a substitute for rigorous analysis and billions of miles of data.
c. Recent Data continues this trend and is even more compelling. Autopilot is ~10X safer than US average and ~5X safer than a Tesla with no AP tech enabled. More detailed information will be publicly available in the near future.
2. Autopilot features, including Traffic-Aware Cruise Control and Autosteer, are SAE Level 2 driver-assist systems, meaning –
a. Whether the driver chooses to engage Autosteer or not, the driver is in control of the vehicle at all times. The driver is notified of this responsibility, consents, agrees to monitor the driving assistance, and can disengage anytime.
b. Despite the driver being responsible for control for the vehicle, Tesla has a number of additional safety measures designed to monitor that drivers engage in active driver supervision, including torque-based and camera-based monitoring. We have continued to make progress in improving these monitoring systems to reduce misuse.
c. Based on the above, among other factors, the data strongly indicates our customers are far safer by having the choice to decide when it is appropriate to engage Autopilot features. When used properly, it provides safety benefits on all road classes.
Tesla also provided some context about some of the crashes that were highlighted by The Washington Post. As per the electric vehicle maker, the incidents that the publication cited involved drivers who were not using Autopilot correctly. The publication, therefore, omitted several important facts when it was framing its narrative around Autopilot’s alleged risks, Tesla argued.
Following is the pertinent section of Tesla’s response.
The Washington Post leverages instances of driver misuse of the Autopilot driver assist feature to suggest the system is the problem. The article got it wrong, misreporting what’s actually alleged in the pending lawsuit and omitting several important facts:
1. Contrary to the Post article, the Complaint doesn’t reference complacency or Operational Design Domain.
2. Instead, the Complaint acknowledges the harms of driver inattention, misuse, and negligence.
3. Mr. Angulo and the parents of Ms. Benavides who tragically died in the crash, first sued the Tesla driver—and settled with him—before ever pursuing a claim against Tesla.
4. The Benavides lawsuit alleges the Tesla driver “carelessly and/or recklessly” “drove through the intersection…ignoring the controlling stop sign and traffic signal.”
5. The Tesla driver didn’t blame Tesla, didn’t sue Tesla, didn’t try to get Tesla to pay on his behalf. He took responsibility.
6. The Post had the driver’s statements to police and reports that he said he was “driving on cruise.” They omit that he also admitted to police “I expect to be the driver and be responsible for this.”
7. The driver later testified in the litigation he knew Autopilot didn’t make the car self-driving and he was the driver, contrary to the Post and Angulo claims that he was mislead, over-reliant or complacent. He readily and repeatedly admitted:
a. “I was highly aware that was still my responsibility to operate the vehicle safely.”
b. He agreed it was his “responsibility as the driver of the vehicle, even with Autopilot activated, to drive safely and be in control of the vehicle at all times.”
c. “I would say specifically I was aware that the car was my responsibility. I didn’t read all these statements and passages, but I’m aware the car was my responsibility.”
8. The Post also failed to disclose that Autopilot restricted the vehicle’s speed to 45 mph (the speed limit) based on the road type, but the driver was pressing the accelerator to maintain 60 mph when he ran the stop sign and caused the crash. The car displayed an alert to the driver that, because he was overriding Autopilot with the accelerator, “Cruise control will not brake.”
While there are many articles that do not accurately convey the nature of our safety systems, the recent Washington Post article is particularly egregious in its misstatements and lack of relevant context.
We at Tesla believe that we have a moral obligation to continue…
— Tesla (@Tesla) December 12, 2023
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 just confirmed the Tesla and SpaceX merger step everyone was waiting for
Tesla and SpaceX formed special committees to weigh a merger, and Elon Musk supports it.
Elon Musk confirmed Tuesday that Tesla and SpaceX have each formed special committees of independent directors to study a possible merger, the first formal step toward combining the two companies after months of speculation.
Musk made the disclosure during SpaceX’s third quarter earnings call. “Both SpaceX and Tesla have formed special committees to discuss this idea at the request of shareholders,” he said. “Because I’m a conflicted party, I can’t actually be in the discussions of the special committees.” He described the setup as “an odd kabuki dance where two groups of people are talking and I can’t be in the conversation.”
Musk did not hide where he stands. “Do I think it would be a good idea? Yes,” he said, pointing to shared work on super intelligence software, chip design, the Terafab facility in Austin, robotics, mass to orbit and connectivity. “I do think there’s a lot of merit to combining the companies as we are pretty much in the super intelligence singularity.”
He also tried to cool expectations. The committees have not agreed on terms for any transaction, and Musk said assuming a merger is a certainty “would be overstating it.” Any deal would go to shareholders, and on the Tesla side it would need approval from 50 percent of all outstanding shares, not just the shares that are voted. Musk called that “quite a high hurdle.”
That bar has tripped Tesla up before. The company’s 2025 attempt to declassify its board won support from only 39.4 percent of outstanding shares and failed. Musk’s own voting stake sits near 20 percent after he exercised his 2018 options in June, so a deal would need broad backing from institutions and a retail base that often leaves votes uncast.
Timing is another open question. Tesla filed its proxy statement Monday for its December 3 annual meeting, and the ballot has only three items: director elections for Musk, Robyn Denholm and JB Straubel, a say on pay vote and auditor ratification. Barclays analyst Dan Levy had argued that an announcement would need to land by late October or early November to make the annual meeting, as Teslarati noted in its SpaceX earnings preview. With no terms agreed, any vote would likely require its own special meeting.
Elon Musk gives his most telling Tesla-SpaceX merger conversation yet
Musk has been edging toward this for weeks. At the All-In Summit in September, he asked “who can imagine what action one might take when there’s so much close collaboration,” Teslarati reported. Last week’s Roadster unveil, built around SpaceX derived cold gas thrusters, pushed the talk further. The two companies already share the Terafab chip project, and Tesla holds a small SpaceX stake that came from its earlier investment in xAI.
SpaceX brought strong numbers to the conversation. It reported Q3 revenue of $14.58 billion, up 161 percent year over year, with its Super Intelligence segment now its largest at $7.56 billion. A higher SpaceX valuation would shape any exchange ratio Tesla holders are offered.
Tesla reports its own third quarter results after the close on Wednesday, October 21. Investors had already ranked merger timing among the top retail questions for SpaceX’s call, and the committees will almost certainly come up again on Tesla’s.
SpaceX reported its third-quarter 2026 financial results on October 20, posting the company’s first solidly profitable quarter since going public earlier in the year under the ticker $SPCX.
Revenue reached $14.58 billion, up 161 percent year-over-year from $5.6 billion, and well ahead of consensus estimates in the $12.7 to $12.9 billion range. The results highlight a rapid shift in SpaceX’s center of gravity toward artificial intelligence/super intelligence, while Starlink and traditional space operations continue to show robust progress.
Here are the key financial results for the quarter:
- Revenue of $14.58 billion (+161% YoY)
- Adjusted EBITDA of $8.8 billion (+306% YoY)
- GAAP net income of $4.4 billion (versus a $1.1 billion net loss in the prior-year quarter)
- Adjusted EPS of approximately $0.35 (versus roughly $0.13–0.16 expected)
- Income from operations of $2.8 billion
The AI/SI segment generated $7.56 billion in revenue, an 830 percent year-over-year increase, making it the company’s largest segment for the first time. Growth was primarily driven by the activation of major cloud services agreements, the integration of Cursor (acquired earlier in 2026), and rising usage of Grok models and the newly introduced Grok Bot personal agent.
🚨 SpaceX just reported earnings! Here are some highlights:
Financial:
Revenue $14.58B (+161% YoY) vs. consensus ~$12.7–12.9B
Adjusted EBITDA $8.8B (+306% YoY)
GAAP net income $4.4B (vs. prior-year loss; first solidly profitable quarter post-IPO)
Adjusted EPS ~$0.35 vs. ~$0.13–0.16 expectedSegments:
Super Intelligence (SI, formerly AI): $7.56B (+830% YoY) — now the largest segment, driven by cloud contracts, Cursor, and Grok.
Connectivity (Starlink): $5.25B (+69% YoY).
Space: $1.77B.Other highlights:
Starlink subscribers: 13.6M (+89% YoY).
Nameplate compute: 1.7 GW.
Capex: $19.6B (majority AI infrastructure).
Cash & marketable securities: ~$90B.
First revenue-generating Starship mission (26 V3 Starlink satellites, ~10× Falcon 9 downlink capacity per launch).— TESLARATI (@Teslarati) October 20, 2026
SI adjusted EBITDA reached $5 billion, and nameplate compute capacity stood at 1.7 GW at quarter-end, up from 1.4 GW in June and 0.6 GW a year earlier. Capital expenditures totaled $19.6 billion, with the majority allocated to AI infrastructure, including continued expansion of the Colossus facilities.
The Connectivity segment, which primarily surrounds Starlink, produced $5.25 billion in revenue, a 69 percent year-over-year and 22 percent sequentially. These are pleasant results to see and expected, considering how many airlines have adopted Starlink over the past year.
Starlink consumer subscribers reached 13.6 million, an 89 percent increase from the prior year, and a sequential gain of 1.6 million. Consumer average revenue per user improved to $69. Meanwhile, Enterprise and Government revenue also grew strongly, and Starlink is now installed on more than 3,800 aircraft, making internet more accessible and better performing than previous options.
The Space segment also performed well and contributed $1.77 billion in revenue, up 6 percent year-over-year and 84 percent sequentially. A major milestone was the successful first revenue-generating Starship mission (Flight 14), which deployed 26 V3 Starlink satellites. Those satellites added roughly 10 times the downlink capacity of a typical Falcon 9 Starlink launch.
SpaceX completed 12 customer launches during the quarter, including NASA’s Nancy Grace Roman Space Telescope mission, and continued to grow its backlog of crewed, national security, and commercial flights.
CFO commentary noted that the combination of launch leadership, recurring Starlink revenue, and rapid SI expansion is producing meaningful operating leverage.
The company ended the quarter with roughly $90 billion in cash and marketable securities, providing substantial resources for ongoing investment while targeting an investment-grade balance sheet. Sequential revenue nearly doubled from the $7.81 billion reported in the second quarter, illustrating the pace of the AI-driven acceleration. Things are looking strong for SpaceX.
What’s incredibly striking is the fact that SI has grown to be larger than the rest of the company in such a short amount of time. CEO Elon Musk said on the earnings call that Grok Bot is the “fastest-growing product I’ve ever seen,” so it seems that it could be a true keystone of SpaceXSI over the next few years.
SpaceX (NASDAQ: SPCX) will report its second public earnings call today since its IPO earlier this year, and there are a few things we expect to hear about, as well as Wall Street analysts, who have already outlined their expectations for the call.
Wall Street analysts have a consensus of $12.72 billion in revenue and an earnings per share (EPS) of $0.13. These are broken down into three sectors: Space, Connectivity, and AI/SI, which are perceived in this way:
- Space: $1.41 billion
- Connectivity: $4.84 billion
- AI/SI: $6.47 billion
Other outlets cluster near $12.8 or $12.9 billion in revenue and $0.14 – $0.15 EPS. This implies a roughly 65 percent sequential growth from Q2’s $7.81 billion, driven mostly by AI/SI, with the first post-IPO positive EPS expected.
Here are the three things to watch for on the call:
AI Revenue Ramp and the $100B+ ARR target
AI is truly the swing factor for SpaceX, and analysts expect it to roughly double from Q2’s $2.56 billion and become about half of total revenue. Management previously guided to a $100 billion+ annualized run rate by December, including the Cursor acquisition, which was $60 billion, to close the quarter.
Listen for updates on SpaceX’s compute capacity, especially pertaining to its contracts with Google, Anthropic, and others, revenue per watt, any new deals, and Cursor’s early contribution.
Starlink/Connectivity Metrics and Mobile Expansion
Connectivity remains a main profit engine for SpaceX. Subscriber additions will be something to pay attention to, as Q2 ended at 12 million and previews are looking at 14 million for this quarter. Additionally, ARPU trends, enterprise and government growth, and any commentary on Starlink Mobile will be something to pay attention to, especially following the recent low-band spectrum deal and FCC-related constellation approvals.
Capex Trajectory, Cash Burn/FCF, and Starship/Operational Updates
Q2 capex of roughly $18.4 billion weighed on the stock. Investors will look to scrutinize Q3 spending levels, any guidance on the pace into Q4/2027, free cash flow, backlog, and liquidity. Operational color on Starship (Flight 14 milestones and Flight 15 timing/reusability progress), Falcon cadence, and government/NASA contracts are also in focus.
Of course, there will also be some speculation on the potential Tesla-SpaceX merger, but there was nothing mentioned in the company’s proxy it sent earlier this week.
SpaceX will report earnings after market close today and will stream the call on X.
Watch live as SpaceX discusses our Q3 2026 earnings at 3:30pm CT today → https://t.co/Qrb0qeVG15
— SpaceX (@SpaceX) October 20, 2026
Interested in ordering a Tesla? Use my referral code for three free months of Full Self-Driving (Supervised) here
Elon Musk just confirmed the Tesla and SpaceX merger step everyone was waiting for
SpaceX delivers blockbuster Q3 results as Super Intelligence segment booms
SpaceX reports its second earnings today: here’s what to expect
SpaceX reveals how its 1 Million AI satellite network will work and prevent space collisions
Tesla Roadster: Three configs, one can fly, 0-60 in 0.8 seconds
