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Tesla top 5: Week in review, February 4
Tesla Model S real-world safety demonstrated after violent rear-end collision
A Reddit user recently posted photos of a Tesla Model S that had a rear-end collision with a Volvo truck. The post concurred with an Insurance Institute of Highway Safety crash test result for the Tesla Model S in which it earned only an “acceptable” rating on its rear crash test. To look at the Reddit photo, one might think that the Tesla Model S does quite well. With a curb weight of 4,647 pounds, the Model S has mass that helped it stand up to a 10-ton truck. The 1,200-lb. flat battery pack strapped to the frame likely was a positive factor, as it reinforces the structural integrity of the vehicle. The Reddit post’s author reported that the driver of the Model S walked away from the collision safe and believes the Tesla saved his life.
Welcome to Tesla, Inc.: We’re more than just electric cars
Tesla announced a corporate name change this week from “Tesla Motors” to “Tesla.” At the time of the company’s founding, the company was positioned as an alternative automobile company. Now, over a decade later, much has changed. With the revised moniker, Tesla confers a broader range of products and services, so that its market reach is much more extensive. Whether it is solar roof tiles, residential and commercial battery systems, or future endeavors such as semi-trucks, electric buses, ride sharing, and tunnel boring, the name Tesla speaks to the company’s overarching goals of clean energy efforts. Musk has repeated how his company will “create stunning solar roofs with seamlessly integrated battery storage, expand the electric vehicle product line to address all major segments, develop a self-driving capability that is 10X safer than manual via massive fleet learning, [and] enable your car to make money for you when you aren’t using it.” The name change now represents that social justice sustainability mission.
Tesla will release 4Q and ’16 full year financial result on February 22
Tesla has announced that on February 22, 2017, it will release Q4 2016 and full year 2016 financial results. First, Tesla will issue a brief advisory, which will include a link to the Q4 as well as a full year 2016 update letter. Each will be posted on the Tesla IR website. To accompany those data releases, the Tesla management will hold a live question and answer webcast that day, scheduled at this writing for 2:30 p.m. Pacific Time (5:30pm Eastern Time). Topics will include the company’s 2016 financial and business results and 2017+ outlook.
Tesla Model S crash test result misses top safety rating by IIHS
The Tesla Model S large luxury sedan earned good ratings in all Insurance Institute for Highway Safety (IIHS) “crashworthiness evaluations” except one: the challenging small overlap front crash test. In that evaluation, it earned just an acceptable rating. Even through Tesla had lengthened the side curtain airbags to improve small Model S overlap protection, it confronted testing issues when the safety belt allowed the dummy’s torso to move too far forward. The results indicated that duplicated real-world injuries would be “possible.” The ratings for the Model S apply to 2016 and 2017 cars built after October 2016. Tesla did make a production change on Jan. 23, 2017 to address the head-contact problem, so IIHS has said they will test the updated vehicle for small overlap protection.
Tesla Gigafactory in Lithuania reimagined within Minecraft game
Tesla’s mission to accelerate the world’s transition to sustainable energy requires production of lithium ion batteries to power their electric vehicles. The Tesla Gigafactory in Nevada began construction on November 4, 2014 and is expected to begin battery cell production by the end of this year. Even before that target production goal, however, Tesla is surveying European locations for a second Gigafactory. Lithuania would like to be chosen as that illustrious manufacturing site, so, to persuade Tesla it is the right fit, a team of Minecraft designers spent two days building a virtual model of Tesla’s Gigafactory. They envisioned Kruonis, Lithuania as the ideal spot for construction due to its “free economic zone, close to two international airports, within close radius of 1.3 million inhabitants.” Sustainable energy sources such as wind power were noted as a perk. Teams from several other European nations are also pitching their concepts to Tesla in the hopes that the next Gigafactory, with its associated job creation, will be in their neighborhoods.
Tesla shared a striking video showcasing the decommissioning of the original Model S and Model X assembly line at its Fremont Factory in Northern California. Completed in just 46 days, the teardown involved heavy machinery dismantling concrete pits, removing robotic arms and conveyors, and clearing the space for new production.
The post, captioned “End of an era,” captured both the end of a historic chapter and Tesla’s aggressive pivot toward its next major initiative, Optimus.
End of an era: Decommissioning the original Model S & X assembly line in just 46 days pic.twitter.com/kGEdfhl62h
— Tesla Manufacturing (@gigafactories) July 10, 2026
The decision to retire the Model S and Model X originated during Tesla’s Q4 2025 Earnings Call in late January 2026. CEO Elon Musk announced that production of the company’s flagship sedan and SUV would wind down by the end of Q2 2026, describing it as bringing the programs to an “honorable discharge.”
Custom orders ceased around early April 2026, with the final vehicles rolling off the line in early May. A special signature delivery ceremony on May 20 marked the emotional close for these vehicles, which had defined Tesla’s early success and luxury EV segment since the Model S launch in 2012.
The primary reason for tearing down the lines was to repurpose the valuable factory floor space for high-volume production of Tesla’s Optimus humanoid robot. Musk had indicated on Earnings Calls that the Fremont S/X line would be replaced by a dedicated Optimus manufacturing line targeting a capacity of one million units per year.
This move aligns with Tesla’s broader strategic shift from traditional vehicle manufacturing toward robotics and artificial intelligence, leveraging the company’s expertise in autonomy, AI training, and high-volume production.
Optimus, Tesla’s general-purpose humanoid robot, is designed to perform repetitive or dangerous tasks in factories, warehouses, and eventually homes. Powered by Tesla’s AI and Neural Networks, it aims to be a versatile, affordable platform. Production of Optimus Gen 3 is already underway in limited form at Fremont, with full-scale output on the converted line expected to begin in late July or August.
Tesla is targeting rapid scaling, with internal ambitions pointing toward tens or even hundreds of thousands of units annually by the end of 2026.
Longer-term, Tesla is constructing a much larger second-generation Optimus facility at Giga Texas, with potential capacity reaching millions of units per year. The company views Optimus as a transformative product that could eventually surpass its automotive business in scale and value, enabling widespread deployment of useful robots across industries. CEO Elon Musk has even predicted it would be the most popular product of all-time.
As one era closes at Fremont, another is rapidly taking shape.
Elon Musk posted a candid admission on his social media platform X on June 9, declaring that he had been “clearly wrong” about Anthropic. The statement marked a notable reversal from his earlier skepticism toward the AI company.
In September, Musk had written, “Winning was never in the set of possible outcomes for Anthropic,” reflecting his view at the time that the startup had lacked the foundation or even the trajectory to succeed in what is an incredibly intense race for advanced artificial intelligence.
Musk’s latest post came amid discussion of Anthropic’s reliance on external compute resources. He praised the company’s progress, stating that Anthropic is “obviously currently the leader in AI” and that “no company has released a model as good as Mythos/Fable,” with expectations of a strong follow-up in Mythos 2.
The tone shifted dramatically from dismissal to acknowledgement of superior performance.
I was clearly wrong about Anthropic. They are obviously currently the leader in AI. No company has released a model as good as Mythos/Fable and they will undoubtedly have Mythos 2 ready soon.
And I would never cut them off in a way that hurt them badly, even as a competitor.…
— Elon Musk (@elonmusk) July 9, 2026
The context of Musk’s comments added significance. Anthropic has been operating under a recent compute deal with SpaceXAI, Musk’s AI infrastructure-focused venture. The pair entered a short-term GPU lease agreement initiated in May, providing Anthropic access to critical computing power for training and deploying its frontier models.
SpaceXAI signs agreement with Anthropic for massive AI supercomputer access
Some observers had speculated that Musk could leverage this dependency to disadvantage a rival. Musk directly addressed the possibility, writing, “I would never cut them off in a way that hurt them badly, even as a competitor. That’s not my style.”
To support his commitment to ethical competition, Musk referenced concrete examples from his other companies. Tesla famously open-sourced its entire portfolio of electric vehicle patents in 2014. The move was designed to accelerate the global adoption of sustainable transportation technology rather than protect proprietary advantages.
Tesla also made its Supercharger network available to competing electric vehicle manufacturers, transforming what could have remained an exclusive charging ecosystem into a shared infrastructure that benefits the broader industry and reduces barriers for EV adoption.
Musk further pointed to SpaceX’s practices, noting that the company launches satellites for competing commercial systems “with no increase in price or use of unfair terms.” He extended the principle to his social platform, observing that “even my worst enemies attack me on this platform,” underscoring preference for open discourse over retaliation.
These examples have illustrated Musk’s long-standing philosophy that long-term technological progress is best served by open competition and infrastructure sharing rather than leveraging market power to stifle rivals. In the fast-evolving AI sector, where compute resources and model capabilities determine leadership, Musk’s stance suggests a willingness to compete on innovation and performance alone.
Musk’s admission arrives as SpaceXAI itself advances its own frontier models while maintaining business relationships across the ecosystem. By publicly correcting his earlier assessment and reaffirming principles of fair play, Musk highlights a model of competition that prioritizes advancement of the field over short-term tactical advantages.
A Tesla analyst believes the company’s Full Self-Driving suite is close to an “inflection point,” where people will finally realize that it is more than what it appears, similar to how many view the iPhone.
Pierre Ferragu, an analyst who has covered Tesla for many years at New Street Research, says the Full Self-Driving suite is one piece of evidence supporting the view that a Tesla is more than a car. He compared it to the iPhone and noted that the high price tag seemed like a lot for a phone early on. Then people realized the iPhone was more than just something you make calls with. It made their lives simpler.
🚨 Analyst @p_ferragu says Tesla Full Self-Driving is at an “inflection point” in a recent commentary:
“A Tesla is not a car, the same way an iPhone was not a phone. As a tool that gets you to work peacefully every morning, it is not expensive. Give us 2 more quarters to see… pic.twitter.com/tm6xFrjVPV
— TESLARATI (@Teslarati) July 10, 2026
Suddenly, that price tag was justified.
Tesla offers several models under the average transaction price for a new vehicle, which was above $49,000, according to Kelley Blue Book. However, that does not take into account that many people can still not afford a $35,000 vehicle. Ferragu offers his thoughts:
“Remember when the addressable market of the iPhone was 10 million units? Then people realized how good it was, and now, nearly 250m are sold every year.
A similar evolution for Tesla is still on the table. A Tesla is not a car, the same way an iPhone was not a phone.
A model 3 at $35k + $100 per month is too expensive for most, but only as a car, the same way a $600 iPhone was too expensive for most, until most realized it was much more than a phone.
As a tool that gets you to work peacefully every morning, it is not expensive.”
This point is valid, especially considering the iPhone’s impact on the cell phone market. There are still a handful of players, but most people you know have an iPhone. The iPhone ties into Apple’s other ecosystem of products.
This is how Tesla plans to infiltrate the automotive market, and once the company offers a fully autonomous suite, or something that can allow for unsupervised self-driving, more and more people will flock to Tesla.
Ferragu believes Tesla needs two additional quarters of development before things will truly change. He didn’t elaborate on what will happen in two quarters, but he said it will give us all time to “see where this is heading.”
It is really quite interesting to see people’s reactions when they find out what a Tesla is capable of. Full Self-Driving is a great tool for taking stress out of travel; I use it daily, and it has made it really difficult to consider taking any other car on a drive of practically any length.
To me, it is really hard to believe that people will not at least seriously consider a Tesla as their next car if they experience Full Self-Driving. This is a major point for those who argue that Tesla should advertise in some way.
Tesla shows rapid teardown of Model S and X lines, paving the way for Optimus at Fremont
Elon Musk admits he was ‘clearly wrong’ about Anthropic
