News
Tesla emphasizes factory safety, preempts possible smear campaign by auto union
Tesla released a blog post Sunday evening that reemphasizes the company’s goal to become the safest auto factory in the world. The post comes after the United Auto Workers Union (UAW) attempted to rally support earlier this year from Fremont factory workers in favor of unionizing.
Tesla states that it has received several media inquiries over allegations about safety at its Fremont, California factory. The well-timed nature of the inquiries, and similarity in topic, led Tesla to believe that the UAW was spreading anti-Tesla propaganda to the media in an attempt to provoke a response from the public, and from Tesla employees. In typical fashion, Tesla acted quickly and took to the offensive to defend the company’s approach to manufacturing, and maintaining the health and safety of its employees. The company has gone as far as forming dedicated Ergonomics Teams that have exclusive focus on “improving health and safety and reducing ergonomic risk for current and future production”.
“We are building entirely new vehicles from the ground up, using entirely new technology, production, and manufacturing methods, and ramping them at high volume. Getting this right is extremely difficult, and we deeply appreciate the hard work that all our employees do to help us achieve what most regard as impossible.” says Tesla through its blog post.
Tesla notes that in just 15 years, the company has become the largest manufacturing employer in California with over 10,000 production jobs in the Fremont factory and surrounding Bay Area.
Tesla has a proven track record of putting safety first as made evident by the award-winning safety ratings for its Model S and Model X. Vehicles have taken the brunt of the impact for their occupants, have swerved to avoid accidents and have even accelerated to avoid accidents. The innovative safety features Tesla has built into its vehicles is unsurpassed in the automotive world.
Though Tesla’s safety record to date is already better than industry-average, according to its press release, the company indicates that it continues to learn and apply new production processes aimed at improving employee well-being. Among the improvements are:
- Added 3rd shift to the manufacturing schedule to cut overtime because the employees asked for it and it was the right thing to do.
- Hired dedicated Ergonomist and established an Ergonomics team to ensure that current and future Tesla manufacturing lines are ergonomically friendly for employees.
- Model 3 has been designed with manufacturing employee ergonomics in mind. The Tesla Ergonomics Team works closely with design and engineering teams to catch ergonomics issues before they happen and proactively drive these improvements back into the design of the equipment and the car. Yes, you heard that right. Tesla will redesign the car if it is resulting in ergonomically challenging situations for its manufacturing employees.
- Established safety teams in every department which meets regularly to ensure safety is a top focus in its manufacturing operating departments.
These changes are not just skin deep and the company is seeing the results of the changes already. Tesla says it has collectively reduced 52% in lost time incidents and a 30% reduction in recordable incidents in the first quarter of 2017 versus the same period last year. These more granular metrics support an improvement in the industry standard Total Recordable Incident Rate (TRIR) which at the end of Q1 2017 was 4.6, a full 32% better than the industry standard of 6.7.
Anyone who has worked in an industry where safety is important can tell you that a culture of safety awareness is built day by day, month by month over many years. Tesla has a demonstrated history of superior results. The steps it has outlined to drive further improvements at the factory are evidence of a continued focus on safety and its employees.
The full post from the Tesla Blog reads as follows:
Creating the Safest Car Factory in the World
Earlier this year, the United Automobile Workers (UAW) announced it was attempting to organize workers in Tesla’s Fremont factory. The latest phase of their campaign involves a concerted and professional media push intended to raise questions about safety at Tesla.
We have received calls from multiple journalists at different publications, all around the same time, with similar allegations from seemingly similar sources about safety in the Tesla factory. Safety is an issue the UAW frequently raises in campaigns it runs against companies, and a topic its organizers have been promoting on social media about Tesla.
Some of the publications who have contacted us have rejected covering this “story” because they understand it is a misleading narrative based on anecdotes, not facts. However, there will likely be a few publications that choose to publish stories regardless, so we want to make sure the public also has the facts. Watch for these articles to downplay or ignore our actual 2017 safety data and to instead focus on a small number of complaints and anecdotes that are not representative of what is actually occurring in our factory of over 10,000 workers.
First, some context is important. The difficulty of starting a successful U.S. car company cannot be overstated, as evidenced by the fact that Ford is the only other U.S. car company to have never gone bankrupt. We are attempting to break this trend in order to fulfill our mission of accelerating the world’s transition to sustainable energy.
We are building entirely new vehicles from the ground up, using entirely new technology, production, and manufacturing methods, and ramping them at high volume. Getting this right is extremely difficult, and we deeply appreciate the hard work that all our employees do to help us achieve what most regard as impossible. While we still have a long way to go, in less than 15 years, we have become California’s largest manufacturing employer, creating more than 10,000 high-quality production jobs in the Bay Area, many of which had previously disappeared with the closure of NUMMI under the stewardship of the UAW.
As we work to achieve our mission, nothing is more important to us than protecting the health and safety of our employees. As we look at our safety record in prior years, we realize that we have not been perfect. No car factory is perfect, but particularly given that Model S and X were the first cars we built at more than tiny volumes, we fully acknowledge that they were not designed for ease of manufacturing – far from it. As would be expected, we have since learned many lessons, including how to improve the production process for the well-being of our colleagues.
Here are just some of the improvements that we have made:
- Historically, depending on production needs, some Tesla employees have worked significant amounts of overtime because it was necessary for the company to survive. However, working overtime can be challenging for employees and their families. Last year, we added a third shift to reduce the overtime burden on each team member and to improve safety. We did this because our employees asked for it, and because it was the right thing to do.
- As a result of this change, the average amount of hours worked by production team members has dropped to about 42 hours per week, and the level of overtime decreased by more than 60%. We hired our first dedicated Ergonomist in 2013, and in 2015 established an Ergonomics Team exclusively focused on improving health and safety and reducing ergonomic risk for current and future production.
- In addition to improving the process of building Model S and X, Model 3 has been designed specifically with ergonomics in mind. Our ergonomics team has worked hand-in-hand with our engineers on the design process. As just one example, we created simulations that showed us where reaching or bending by employees was most likely to occur, which in turn allowed us to redesign the equipment and the car to eliminate these issues as much as possible.
- Each department now has a Safety Team that meets regularly to increase safety awareness and recommend improvements, many of which have already been implemented.
- We are continuing to establish health and safety management procedures to scale with our operational growth.
The third shift, ergonomic improvements and increased safety awareness have collectively led to a 52% reduction in lost time incidents and a 30% reduction in recordable incidents from the first quarter of 2016 to the first quarter of 2017. In addition, through the end of Q1 2017, the factory’s total recordable incident rate (TRIR), the leading metric for workplace safety, is 4.6, which is 32% better than the industry average of 6.7. This data shows that there has been a dramatic improvement in employee safety, we are now significantly better than industry-average, and we continue to improve each day. A few anecdotes in a factory of over 10,000 people can always be given, but these are the facts.
Tesla’s safety record is much better than industry average, but it is not enough. Our goal is to have as close to zero injuries as humanly possible and to become the safest factory in the auto industry. We will get there by continuing to ask our employees to raise safety concerns and to keep proposing ideas that make things even better.
The alternative is to stop improving and to instead do what the rest of the industry, including the UAW, has always done. But being industry average would make our safety 32% worse. We care too much about our team to go backwards.
Investor's Corner
Tesla stock tumbles after earnings, one of its sharpest single-day declines
Tesla stock (NASDAQ: TSLA) endured one of its sharpest single-day declines in years on July 23, tumbling approximately 14.5 percent and closing near $320 after opening the session around $374. The drop erased more than $140 billion in market value amid heavy trading volume and left the shares at multi-week lows.
The sell-off followed the company’s second-quarter 2026 results, released the previous evening. Tesla reported record revenue of $28.2 billion, up 26 percent year over year, driven by a Q2-record 480,126 vehicle deliveries. Energy storage deployments also rose strongly.
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Yet profitability disappointed sharply. Operating income fell 57 percent to $398 million, compressing the operating margin to just 1.4 percent. Non-GAAP earnings per share came in at $0.33, well below the roughly $0.53 analysts had expected. Free cash flow turned negative by $1.1 billion as capital expenditures surged 142 percent to $5.8 billion, largely tied to accelerated spending on artificial intelligence, robotics, and autonomous systems.
The losses on capex were expected, as Tesla said it would be spending heavily in 2026.
Investors also reacted to lingering uncertainty surrounding key product timelines. During the Earnings Call, management reiterated ambitions for Robotaxi deployment and the Optimus humanoid robot, but offered limited new concrete milestones, renewing questions about execution pace that have long accompanied Tesla’s ambitious roadmap.
The magnitude of the decline places it among Tesla’s more severe one-day percentage losses since its 2010 initial public offering. Historically, the two largest single-day drops (split-adjusted) remain September 8, 2020, when shares fell 21.1 percent amid broader market volatility and valuation concerns, and January 13, 2012, with a 19.3 percent plunge during the company’s early growth struggles.
Other notable declines include an 18.6 percent drop on March 16, 2020, at the onset of pandemic-related market turmoil. Thursday’s move ranks roughly ninth on the all-time list but stands out as the steepest in more than a year.
Despite the short-term pain, Tesla’s long-term trajectory has repeatedly recovered from such volatility. The latest results underscore both the strength of its core automotive and energy businesses and the near-term costs of heavy investment in next-generation technologies.
Elon Musk
Elon Musk is not happy about this Tesla Full Self-Driving approval delay
Elon Musk clapped back at France’s decision to withhold the approval for Tesla’s Full Self-Driving (FSD) Supervised system, projecting a clear and blunt message to French Transport Minister Phillippe Tabarot, after he publicly rejected the technology in its current form.
Tabarot outlines several concerns with Tesla Full Self-Driving in a detailed video statement, where he said, “The safety trade-offs are not yet sufficient to authorize it as it currently stands,” he said. He emphasized that FSD is not a true self-driving system and that the driver remains fully responsible.
Key issues Tabarot also brought up included allowing speeding when surrounding traffic exceeds limits and what he believes are insufficient guarantees of driver attention during complex urban maneuvers such as lane changes, intersections, and roundabouts.
Delaying the approval of FSD in France will cost lives
— Elon Musk (@elonmusk) July 22, 2026
While acknowledging technological progress and France’s support for autonomous innovation, Tabarot stressed that deployment must prioritize road safety. He noted ongoing technical discussions with Tesla, the Netherlands, and other European partners, with further ecosystem meetings planned for the fall.
Musk’s rebuke highlights the human cost of regulatory caution. Tesla’s latest safety reports provide compelling data supporting accelerated adoption. In the most recent 12-month period, vehicles using FSD (Supervised) recorded one major collision per approximately 5.1 million miles driven, dramatically better than the U.S. national average of one crash per 698,000 miles.
Even Tesla vehicles driven manually with active safety features outperform the average by a wide margin. These figures come from billions of real-world miles of telemetry, showing FSD vehicles involved in far fewer incidents than both manual Teslas and the broader U.S. fleet.
Critics argue Tesla’s comparisons require careful scrutiny regarding reporting thresholds and fleet demographics, yet the data consistently positions FSD as a potential lifesaver. With road fatalities remaining a leading cause of death worldwide, Musk contends that proven safer technology should not face prolonged bureaucratic hurdles.
France’s measured approach reflects the broader European regulatory caution, which many, especially Musk, have been critical of in the past. However, as autonomous systems from Tesla and competitors like Waymo demonstrate superior safety in independent studies, pressure is mounting for harmonized approvals.
Musk’s warning carries the belief that every month of delay may equate to avoidable tragedies on European roads.
Investor's Corner
Google’s massive stake in SpaceX will shock you
In a striking revelation that underscores the lucrative crossover between Big Tech and space exploration, Alphabet Inc., Google’s parent company, disclosed a massive $94.1 billion equity stake in SpaceX following the rocket company’s blockbuster initial public offering earlier this year.
The disclosure came in Alphabet’s quarterly filing, marking the first time the long-held private investment has been publicly valued at market prices. Google was an early backer, investing alongside Fidelity in 2015 with roughly $500-900 million at a time when SpaceX was valued around $12 billion.
That bet has delivered extraordinary returns, roughly a hundredfold, transforming a strategic play on satellite internet and launch capabilities into one of Alphabet’s largest assets.
Google, $GOOGL, has said they hold $94 billion in SpaceX, $SPCX, shares after IPO.
— unusual_whales (@unusual_whales) July 23, 2026
Of the total holding, approximately $80 billion remains subject to short-term post-IPO lockup restrictions, preventing near-term sales. An additional $14.1 billion faces longer-term restrictions, extending into the third quarter of 2027. This structure limits immediate liquidity but protects against market volatility as SpaceX transitions into public trading.
The SpaceX position contributed significantly to gains in Alphabet’s broader investment portfolio, which also includes a major stake in AI leader Anthropic. Combined, these holdings helped drive nearly $100 billion in investment gains during the second quarter, providing a substantial boost to net income amid ongoing AI spending pressures.
Analysts view the disclosure as validation of Alphabet’s venture strategy beyond its core search and cloud businesses. The investment aligns with deeper ties, including reported multi-billion-dollar deals for AI computing capacity on SpaceX infrastructure. As SpaceX advances Starship flights, Starlink expansion, and ambitious Mars goals under Elon Musk, Google’s stake positions it to benefit from the commercialization of space.
For Alphabet, the windfall highlights how patient, forward-looking bets in transformative sectors can yield outsized rewards. While lockups temper short-term impact, the holding cements SpaceX as a cornerstone of Alphabet’s diversified portfolio in an era where aerospace, AI, and connectivity increasingly intersect. Investors will watch closely as restrictions lift and SpaceX’s public performance unfolds.