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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.
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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.
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Tesla CEO Elon Musk said that flying cars will be coming to the market, something that his own company has hinted at previously.
Musk said on X, in response to a post that read, “We were promised flying cars and all we got is infinite superintelligence for everyone,” “You will get flying cars.”
You will get flying cars
— Elon Musk (@elonmusk) August 12, 2026
The post rang back to when Musk teased flying and hovering capabilities for the Tesla Roadster, the company’s supercar that has been delayed more times than anyone cares to count. It was set for an unveiling earlier this year, but it was then pushed back to August. There is still no sign of it coming.
However, that does not mean it won’t. But one of the biggest features of the Roadster that was teased was a SpaceX package that featured cold gas thrusters on the rear end that would help with white-knuckle acceleration. Another set would face the ground and would help the Roadster gain small bits of altitude, potentially helpful to jump over obstacles.
Elon Musk hints at Tesla Roadster’s “hovering” abilities in SpaceX package
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But it is not a straightforward thing for Musk. As a serial entrepreneur, he tends to spend his time on major disruptors; currently, his largest projects are artificial intelligence and compute power, as well as SpaceX’s launches that will eventually make life multiplanetary.
In the past, he has been critical of flying cars and has been in favor of tunnels, one of the big reasons he started the Boring Company. In 2017 at a TED talk, he said:
“There is a challenge with flying cars in that they’ll be quite noisy. The wind force generated will be very high. Let’s just say that if something’s flying over your head, if there are a whole bunch of flying cars all over the place, that is not an anxiety-reducing situation…You’re thinking, ‘Did they service their hubcap? Or is it going to come off and guillotine me as they’re flying past?’”
However, he’s never been against them. He has also said he’s in favor of both tunnels and flying cars.
Contrary to press reports, I’m not against flying cars. Just said it was important to consider both pros and cons.
— Elon Musk (@elonmusk) March 24, 2015
Most recently, Musk said that anyone who wants a flying car should be able to get one. This was stated last October on the Joe Rogan Experience:
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“My friend Peter Thiel once reflected that the future was supposed to have flying cars, but we don’t have flying cars… I think if Peter wants a flying car, we should be able to buy one.”
Whether the Roadster will be Tesla’s flying car or potentially another one remains in the mind of Musk. Of course, the Roadster will have to make its way to production lines before we find out.
Elon Musk
SpaceX’s next trillion dollar bet has nothing to do with rockets, Musk tells staff
Elon Musk told SpaceX staff AI revenue will soon dwarf rockets and Starlink combined entirely.
Elon Musk told SpaceX employees this week that artificial intelligence, not rockets, will soon carry the company’s revenue. In a roughly 29 minute internal address posted on SpaceX’s X account on Tuesday, Musk said AI revenue will pass every other line of business at SpaceX “probably in September” and pull further ahead by the fourth quarter.
The numbers he gave are specific. SpaceX currently runs 1.4 gigawatts of AI compute capacity. Musk wants that at 10 gigawatts by the end of 2027, a jump he tied directly to revenue: “if we bring 10GW of AI online by the end of next year, it will be $300 billion to $500 billion a year in revenue.” He called those “big numbers,” which undersells a projection larger than what most countries produce in a year.
We made rockets reusable and are rebuilding the internet in space. The next challenge: making life multiplanetary and understanding the true nature of the universe
Watch @ElonMusk deliver a company update to @SpaceX employees pic.twitter.com/5c8rxoCQfu
— SpaceX (@SpaceX) August 11, 2026
Musk went further on where AI fits into SpaceX’s future. “Probably in four or five years, AI will be 99% of the value of SpaceX,” he told staff, adding that digital intelligence would eventually run “a trillion times” ahead of biological intelligence as computing scales. He tied that growth to the company’s founding mission, telling employees “we must win on AI, because the future is overwhelmingly AI and robots,” with the payoff meant to help fund Starship and a Mars program that increasingly runs through Terafab, the joint Tesla, SpaceX and xAI chip plant.
Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry
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None of this is entirely new territory. SpaceX told investors much the same story during its first earnings call as a public company on August 4, where Musk moved the company’s $1 trillion revenue target up a year to 2030 and said Starlink could someday carry a majority of the world’s internet. What the all hands video adds is a hard deadline and a specific power figure Musk had not given publicly before, along with a franker pitch to his own workforce that AI, not launch cadence, is now the thing SpaceX is betting its future on.
The AI revenue itself is not coming from SpaceX training its own models. It is largely Starlink acting as the network layer for xAI’s workloads, plus SpaceX renting out compute capacity directly, the same approach behind the roughly $16 billion the company spent on AI infrastructure in a single quarter.
Musk closed the video with a pitch aimed at recruiting and retention rather than investors, telling employees that anyone who helps SpaceX win the AI race will eventually get the chance to go to the moon or Mars themselves. Whether SpaceX can turn 1.4 gigawatts into 10 in seventeen months is the more immediate question, and one that will show up in quarterly numbers well before anyone leaves Earth.
In a new note to investors on Tuesday, Morgan Stanley analyst Andrew Percoco said that Tesla has one big financial question to answer for investors regarding its Robotaxi rollout, Full Self-Driving software, and Optimus.
Percoco said in the note that, for the most part, investors are still very positive about the direction the company is headed. However, there are some things the firm would like to see, and they have to do with financials.
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Tesla bulls are more than convinced that the company’s Full Self-Driving software is proof it can develop physical AI. Financially, however, there are still some questions, especially on elevated spending, which CEO Elon Musk said would occur as the company works to roll out Robotaxi faster and continue developing its Optimus robot.
The latter two are where Tesla will have to prove progress to investors, as Percoco writes that both projects “will require clearer evidence that Robotaxi is scaling and more tangible Optimus proof points to support the ROI on elevated capex.”
Percoco said the second quarter earnings call did not change his long-term thesis of where Tesla is positioned in the AI race, which is out in front. However, there are concerns that weaker gross margins and higher R&D spend will stress financials, and that has “sharpened our (and investors’) focus on measurable progress across Robotaxi and Optimus.”
Additionally, Robotaxi still needs to be proven with more operation in existing cities while maintaining safety but improving how many rides it gives in any given time, he said. For Optimus, Percoco wrote that he is “still looking for evidence beyond commentary around SOP.”
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Morgan Stanley put Percoco in charge of covering Tesla after long-time analyst Adam Jonas transitioned to the automotive side.
Currently, Morgan Stanley has a $415 price target on Tesla and a ‘Hold’ rating on the stock. It is trading at around $330 at the time of publication, which was 2:30 P.M. on the East Coast.
Tesla CEO Elon Musk says flying cars are coming
SpaceX’s next trillion dollar bet has nothing to do with rockets, Musk tells staff
