Internal Skepticism Clouds Tesla’s AI Safety Narrative

Tesla’s push for Full Self-Driving (FSD) ubiquity is facing a crisis of confidence from within its own ranks. AI trainers tasked with labeling data for the system report significant distrust in the company’s public safety statistics and the actual capabilities of the technology Reuters. These trainers, who provide the ground truth for Tesla's neural networks, suggest that the data used to support safety claims may not fully reflect the complexities and disengagements experienced during real-world testing Reuters.

The implications for Tesla’s valuation are massive, as the stock’s premium is heavily tied to its identity as an AI and robotics leader. If internal teams are questioning the metrics used to justify FSD’s progress, it creates a regulatory and PR vulnerability. This comes as Tesla attempts to scale its Robotaxi fleet in competitive markets like Austin, where it is already listed as a deployed operator KXAN.

The SpaceX-Tesla Merger: 'A Matter of When'

As SpaceX prepares for a mammoth $1.75 trillion initial public offering in early June, the conversation is shifting toward a potential consolidation of Elon Musk's empire. Early SpaceX investor Peter Diamandis stated that a merger between SpaceX and Tesla is "only a matter of when," citing Musk's likely desire to consolidate voting control across his ventures Bloomberg. Musk currently holds 85.1% control at SpaceX but lacks a similar super-voting structure at Tesla Bloomberg.

Analysts suggest SpaceX could be worth more than Tesla the moment it hits the public market Yahoo Finance. While the recent Starship V3 test flight on May 22 saw the Super Heavy booster crash into the Gulf of Mexico, investors viewed the mission as a success for deploying dummy satellites and proving the upgraded vehicle's trajectory sekbernews.id. SpaceX has already invested over $15 billion into the Starship platform to achieve full reusability and lower launch costs Reuters.

Waymo’s 'Ojai' Takes Aim at the Robotaxi Crown

Alphabet’s Waymo is stepping up the pressure on Tesla’s yet-to-be-released Cybercab by launching its new "Ojai" robotaxi for select riders in San Francisco, Los Angeles, and Phoenix Business Insider. Manufactured by Chinese EV firm Geely under the Zeekr brand, the Ojai is a boxy, spacious minivan designed specifically for autonomous ride-hailing CNET. The vehicle features dual-sliding carriage doors, a flat floor for maximum legroom, and enough trunk space to fit six suitcases Business Insider.

Crucially, the Ojai utilizes Waymo’s 6th-generation driver system, which includes enhanced sensors and tiny wipers to handle harsh weather like snow or dust storms San Francisco Chronicle. While Waymo aims to lower fleet expansion costs with this modular design, the rollout isn't without hiccups; early testers reported the vehicle glitching and requiring remote support twice during a short San Francisco trip Business Insider.

Market Watch

TSLA is currently trading at $441.42, up 0.24% from its previous close. While Tesla remains the focus, the broader tech and AI sectors are seeing explosive moves. Snowflake (SNOW) shares soared 36% following a massive Q1 earnings beat and a new partnership with Amazon Investor's Business Daily. HP Inc. (HPQ) also saw double-digit gains after exceeding revenue expectations CNBC.

In the EV space, competition remains fraught with financial difficulty. XPeng reported a widening net loss of $262.6 million as revenue slumped despite slightly better margins Wall Street Journal. Meanwhile, space-adjacent stocks are rallying on SpaceX IPO fever, though Firefly Aerospace (FLY) saw a 2.6% dip to $57.28 after announcing a common stock offering CNN.