News
Trafficking survivor has a hard question for Twitter advertisers pausing ads over Elon Musk acquisition
Elon Musk’s acquisition of Twitter has finally come to a close, and as he takes charge of the platform, some advertisers aren’t too happy. Citing his love for humanity, Elon Musk wrote a letter to Twitter’s advertisers emphasizing the importance of ad relevancy on Thursday.
On Friday, General Motors paused its Twitter ad spending once Elon Musk completed his takeover of the platform. Although GM is a competitor of Tesla, another company owned by Elon Musk, Tesla doesn’t pay any platform for advertising.
This news prompted human trafficking survivor advocate, Eliza Bleu, to ask GM and any other advertiser considering leaving Twitter one hard question.
“Is advertising with Elon Musk worse than with child sexual abuse material?”
In September, Twitter told advertisers found ads on profiles linked with child sex abuse. Business Insider viewed those emails sent and reported that Twitter banned accounts for violating its rules. The publication noted that some advertisers were told that Twitter suspended all ads on profiles and that it had “updated its systems” in order to detect better accounts linked to child sexual abuse material or CSAM.
Twitter told Insider that it’s working with its product teams to ensure it has the right models, processes, and products in place to help keep everyone using Twitter safe, which, in the cases of John Doe 1 and John Doe 2, don’t seem to be true. John Doe 1 and John Doe 2 are two male minors who begged Twitter to remove videos of their sexual exploitation. Twitter refused to pull down the content.
Eliza Bleu pointed out that Twitter still hasn’t solved the CSAM problem after the ad issue. “The employees knew about the problem before the issue with the ads,” she told Teslarati. She pointed to a recent case reported by the Northampton Chronicle & Echo on Thursday.
In this case, a 22-year-old man pled guilty to three counts of making indecent photographs of children and two counts of attempting to engage in sexual communication with children. There were three Twitter accounts that shared indecent images and videos of children. The defendant was also having conversations of a sexual nature with a 13- and 14-year-old.
Eliza Bleu also pointed out that Delhi Police’s Intelligence Fusion and Strategic Operations blocked 23 Twitter accounts for sharing CSAM in September, as well as one in Naples, where a man was arrested with over 100 child pornography charges. The man transmitted multiple child pornography files from his Twitter and Snapchat accounts to other users.
In September, Andrea Stroppa, founder of Ghost Data and a former contributor to the World Economic Forum, released an exclusive report to Reuters with a list of over 500 accounts that openly shared or requested CSAM over a 20-day period in September. Stroppa also shared the report with Teslarati following the publishing of the Reuters article.
Those 500 accounts produced over 10,000 tweets, with almost half focusing on trading illicit material. The accounts accumulated over 2,000 unique followers.
In her question to GM, which goes for any company wanting to pause its ad spending due to Elon Musk taking ownership of Twitter, Eliza Bleu wanted to know if Elon Musk was truly worse than the exploitation of children.
Question @GM why didn’t you remove your ads from Twitter in September when you received an email from Twitter telling you that you paid to potentially run ads on child sexual abuse material imagery?
Is @elonmusk worse than child sexual abuse material?
— 𝔈𝔩𝔦𝔷𝔞 (@elizableu) October 29, 2022
Eliza told Teslarati that she is also concerned about the narratives that could be created and pushed. Narratives such as Elon Musk, the ongoing lawsuit against Twitter by John Doe 1 and John Doe 2, and CSAM on Twitter in general. There’s already a lot of misinformation about Elon Musk, and it would be easy for this topic to be weaponized against Elon Musk now that he has taken over Twitter.
These are the words that John Doe #1 said to Twitter after they refused to pull down the two male minors sexual exploitation.
The survivors were both 13 in the video. pic.twitter.com/iI6XgAmhGu
— 𝔈𝔩𝔦𝔷𝔞 (@elizableu) April 10, 2021
“Two minors are currently suing Twitter. If Elon does indeed take over Twitter and acquire Twitter, unfortunately, part of the baggage he’s going to acquire is this lawsuit. Of course, the lawsuit won’t be against him personally. It’ll be against Twitter,” Eliza said in a recent video.
Eliza has publicly offered Elon Musk and the new Twitter leadership. She’s willing to work with X (Twitter) to remove CSAM at scale. “I offered to work for free,” she said in a tweet.
In a statement to Teslarati, Eliza Bleu reaffirmed her offer to Elon Musk and the new leadership team at Twitter.
“Twitter has a long history of knowingly refusing to remove child sexual abuse material at scale. This issue has been covered by the corporate media and called out by governments around the globe. Over 32 brands removed ads from Twitter when the Reuters pieces came out in September of this year because of child sexual abuse material on Twitter. I think that General Motors’ lack of concern over sexually abused children says a lot. Survivors buy cars too. There are more survivors out there than these brands might think.”
Your feedback is essential. If you have any comments or concerns or see a typo, you can email me at johnna@teslarati.com. You can also reach me on Twitter at @JohnnaCrider1.
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Investor's Corner
Tesla has one big financial question to answer for investors: Morgan Stanley
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.”
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.
Investor's Corner
SpaceX AI investment gamble will make it a big winner, firm says
SpaceX’s massive investment in AI will make it a big winner, Argus Research said after the company’s successful earnings call last week.
The firm also upgraded shares to a Buy from Hold and set a $160 price target.
SpaceX (NASDAQ: SPCX) is currently recovering from its heavy AI infrastructure investments, as it spent nearly $16 billion in Q2 alone. The company did this primarily by monetizing high-demand GPU compute capacity at a much faster pace than traditional data center economics would suggest.
Company CFO Bret Johnsen said that SpaceX would be able to pay back anything on new deployments within a year.
There are plenty of ways the company can do this:
Leasing excess compute capacity through contracts
SpaceX has already built Colossus and Colossus II, largely for its own model training. However, much of that capacity is already rented out to third parties. It already has major deals with Anthropic, Google, and Reflection AI. These partnerships are adding billions per month to SpaceX’s spreadsheet.
High utilization driven by industry-wide scarcity
The demand for advanced AI training and inference capacity continues to exceed what is available for use. SpaceX can fill new racks quickly after they come online, so the capital deployed converts into revenue with minimal idle time.
Additionally, management and outside observers have described the new compute capital as behaving more like a cost-of-goods-sold than traditional multi-year capex, especially because of this rapid monetization pattern.
Capacity has already scaled from ~0.4 GW a year to 1.4 GW annually by the end of Q2. There are targets of more than 2 GW by year-end.
High incremental margins on the rental business once capacity is online
GPU cloud providers often operate at strong gross margins. SpaceX can monetize capacity that was already partially built or can be added efficiently. This means that incremental EBITDA margins on the rental revenue are usually high. This accelerates cash recovery relative to the gross capital outlay.
Parallel monetization of its own AI software and applications
Beyond pure infrastructure rental, SpaceX also generates revenue from Grok through subscriptions and usage, from X through ads, data, and other related services, enterprise APIs, and the planned integration of the Cursor coding tools acquisition.
These application layers ride on the same compute infrastructure and provide additional high-margin streams that could offset build-out costs. AI-segment revenue overall rose sharply to about $2.6 billion in Q2, according to Motley Fool. This was driven primarily by the infrastructure contracts, but the software side is also partially responsible.
Efficient, large-scale deployment and vertical integration advantages
SpaceX has emphasized the rapid construction of power and cooling infrastructure and favorable cost-per-megawatt economics relative to industry benchmarks in some disclosures.
Combined with its ability to scale capacity aggressively and the fact that many contracts start generating revenue within months of capacity coming online, the effective payback compresses dramatically compared with more conventional multi-year data-center projects.
SpaceX’s dominant near-term recovery path will turn the AI clusters into a hyperscale-style compute rental business for other leading AI companies while still using a portion for internal models.
News
Tesla headlights cause recall of over 20,000 Model 3 and Model Y
Tesla headlights have caused a recall of over 20,000 of the company’s two most popular vehicles, the Model 3 and Model Y, due to the low-beam bulb exceeding the maximum allowed intensity according to federal standards.
Tesla initiated the recall with the National Highway Traffic Safety Administration (NHTSA) this morning, stating that the low-beam output “exceeds the maximum allowed intensity in the outer upper-right and outer upper-left areas of the 10U and 90U zone, as prescribed in FMVSS No. 108.”
Tesla sourced the impacted headlights from Marelli Automotive Lighting, a Mexico-based company. The recall impacts 2020-2023 Model Y vehicles and 2017-2023 Model 3 vehicles. It is estimated that every VIN in this recall is impacted by the defect.
🚨 Tesla is recalling 20,349 2020-23 Model Y vehicles and 2017-23 Model 3 vehicles due to an excessively bright headlamp low beam.
Currently, there is no remedy plan in place, as it is still being developed. pic.twitter.com/y34cIO2U0B
— TESLARATI (@Teslarati) August 11, 2026
Typically, Tesla would remedy recalls of this nature through an Over-the-Air software update, which has been a major focus of criticism by the company and its supporters because the NHTSA still refers to it as a “recall,” even though it requires no action by the vehicle owner. The fix is shipped over the internet and downloaded to the car.
However, there appears to be a potentially different solution for this problem. Tesla has not developed a remedy for this issue, so it could potentially be on the way. The big issue appears to be the fact that these recalled lamps are out of production, and this is an old body style for both vehicles. The headlights and front-end designs are completely different.
Tesla switched to another supplier when the affected headlight design was discontinued. It plans to begin notifying owners of their remedy options by September 15.
Tesla filed a petition protesting the recall to fix the vehicles’ headlight issue, but the NHTSA denied it. Now, Tesla will come up with a solution to fix it.

