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And four more things we learned from Tesla’s Q1 earnings call.

Tesla doesn’t want to talk about its cars — or at least, not about the cars that have steering wheels and human drivers.
Despite weeks of reports about Tesla’s manufacturing and sales woes — price cuts, recalls, and whether a new, cheaper model would ever come to fruition — CEO Elon Musk and other Tesla executives devoted their quarterly earnings call largely to the company's autonomous driving software. Musk promised that the long-awaited program would revolutionize the auto industry (“We’re putting the actual ‘auto’ in automobile,” as he put it) and lead to the “biggest asset appreciation in history” as existing Tesla vehicles got progressively better self-driving capabilities.
In other Tesla news, car sales are falling, and a new, cheaper vehicle will not be constructed on an all-new platform and manufacturing line, which would instead by reserved for a from-the-ground-up autonomous vehicle.
Here are five big takeaways from the company's earnings and conference call.
The company reported that its “total automotive revenues” came in at $17.4 billion in the first quarter, down 13% from a year ago. Its overall revenues of $21.3 billion, meanwhile, were down 9% from a year ago. The earnings announcement included a number of explanations for the slowdown, which was even worse than Wall Street analysts had expected.
Among the reasons Tesla cited for the disappointing results were arson at its Berlin factory, the obstruction to Red Sea shipping due to Houthi attacks from Yemen, plus a global slowdown in electric vehicle sales “as many carmakers prioritize hybrids over EVs.” The combined effects of these unfortunate events led the company to undertake a well-publicized series of price cuts and other sweeteners for buyers, which dug further into Tesla’s bottom line. Tesla’s chief financial officer, Vaibhav Taneja, said that the company’s free cash flow was negative more than $2 billion, largely due to a “mismatch” between its manufacturing and actual sales, which led to a buildup of car inventory.
The bad news was largely expected — the company’s shares had fallen 40% so far this year leading up to the first quarter earnings, and the past few weeks have featured a steady drumbeat of bad news from the automaker, including layoffs and a major recall. The company’s profits of $1.1 billion were down by more than 50%, short of Wall Street’s expectations — and yet still, Tesla shares were up more than 10% in after-hours trading following the shareholder update and earnings call.
The strange thing about Tesla is that it makes the overwhelming majority of its money from selling cars, but has become the world’s most valuable car company thanks to investors thinking that it’s more of an artificial intelligence company. It’s not uncommon for Tesla CEO Elon Musk and his executives to start talking about their Full Self-Driving technology and autonomous driving goals when the company’s existing business has hit a rough patch, and today was no exception.
Tesla’s value per share was about 33 times its earnings per share by the end of trading on Monday, comparable to how investors evaluate software companies that they expect to grow quickly and expand profitability in the future. Car companies, on the other hand, tend to have much lower valuations compared to their earnings — Ford’s multiple is 12, for instance, and GM’s is 6.
Musk addressed this gap directly on the company’s earnings call. He said that Tesla “should be thought of as an AI/robotics company,” and that “if you value Tesla as an auto company, that’s the wrong framework.” To emphasize just how much the company is pivoting around its self-driving technology, Musk said that “if somebody believes Tesla is not going to solve autonomy they should not be an investor in the company.”
One reason investors value Tesla so differently relative to its peers is that they do, actually, expect the company will make a lot of money using artificial intelligence. No doubt with that in mind, executives made sure to let everyone know that its artificial intelligence spending was immense: The company’s free cash flow may have been negative more than $2 billion, but $1 billion of that was in spending on AI infrastructure. The company also said that it had “increased AI training compute by more than 130%” in the first quarter.
“The future is not only electric, but also autonomous,” the company’s investor update said. “We believe scaled autonomy is only possible with data from millions of vehicles and an immense AI training cluster. We have, and continue to expand, both.”
Musk described the company’s FSD 12 self-driving software as “profound” and said that “it’s only a matter of time before we exceed the reliability of humans, and not much time at that.”
The biggest open question about Tesla is what would happen with its long-promised Model 2, a sub-$30,000 EV that would, in theory, have mass appeal. Reuters reported that the project had been cancelled and that Tesla was instead devoting its resources to another long-promised project, a self-driving ride-hailing vehicle called the “robotaxi.”
Musk tweeted that Reuters was “lying” but never directly denied the report or identified what was wrong with it, instead saying that the robotaxi would be unveiled in August. He later followed up to say that “going balls to the wall for autonomy is a blindingly obvious move. Everything else is like variations on a horse carriage.”
Before the call, Wall Street analysts were begging for a confirmation that newer, cheaper models besides a robotaxi were coming.
“If Tesla does not come out with a Model 2 the next 12 to 18 months, the second growth wave will not come,” Wedbush Securities analyst Dan Ives wrote in a note last week. “Musk needs to recommit to the Model 2 strategy ALONG with robotaxis but it CANNOT be solely replaced by autonomy.”
Anyone who expected to get their answers on today’s call, though, was likely kidding themselves.
Tesla announced today it had updated its planned vehicle line-up to “accelerate the launch of new models ahead of our previously communicated start of production in the second half of 2025,” and that “these new vehicles, including more affordable models, will utilize aspects of the next generation platform as well as aspects of our current platforms.” Musk added on the company’s earnings call that a new model would not be “contingent on any new factory or massive new production line.”
Some analysts attributed the share pricing popping after hours to this line, although it’s unclear just how new this new car would be.
Tesla’s shareholder update indicated that any new, cheaper vehicle would not necessarily be entirely new nor unlock massive new savings through an all-new production process. “This update may result in achieving less cost reduction than previously expected but enables us to prudently grow our vehicle volumes in a more capex efficient manner during uncertain times,” the update said.
Of the robotaxi, meanwhile, the company said it will “continue to pursue a revolutionary ‘unboxed’ manufacturing strategy,” indicating that just the ride-hailing vehicle would be built entirely on a new platform.
Musk also discussed how a robotaxi network could work, saying that it would be a combination of Tesla-operated robotaxis and owners putting their own cars into the ride-hailing fleet. When asked directly about its schedule for a $25,000 car, Musk quickly pivoted to discussing autonomy, saying that when Teslas are able to self-drive without supervision, it will be “the biggest asset appreciation in history,” as existing Teslas became self-driving.
When asked whether any new vehicles would “tweaks” or “new models,” Musk dodged the question, saying that they had said everything they had planned to say on the new cars.
One bright spot on the company’s numbers was the growth in its sales of energy systems, which are tilting more and more toward the company’s battery offerings.
Tesla said it deployed just over 4 gigawatts of energy storage in the first quarter of the year, and that its energy revenue was up 7% from a year ago. Profits from the business more than doubled.
Tesla’s energy business is growing faster than its car business, and Musk said it will continue to grow “significantly faster than the car business” going forward.
Revenues from “services and others,” which includes the company’s charging network, was up by a quarter, as more and more other electric vehicle manufacturers adopt Tesla’s charging standard.
Another speculative Tesla project is Optimus, which the company describes as a “general purpose, bi-pedal, humanoid robot capable of performing tasks that are unsafe, repetitive or boring.” Like many robotics projects, the most the public has seen of Optimus has been intriguing video content, but Musk said that it was doing “factory tasks in the lab” and that it would be in “limited production” in a factory doing “useful tasks” by the end of this year. External sales could begin “by the end of next year,” Musk said.
But as with any new Tesla project, these dates may be aspirational. Musk described them as “just guesses,” but also said that Optimus could “be more valuable than everything else combined.”
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On China’s rare earths, Bill Gates’ nuclear dream, and Texas renewables
Current conditions: Hurricane Melissa exploded in intensity over the warm Caribbean waters and has now strengthened into a major storm, potentially slamming into Cuba, the Dominican Republic, Haiti, and Jamaica as a Category 5 in the coming days • The Northeast is bracing for a potential nor’easter, which will be followed by a plunge in temperatures of as much as 15 degrees Fahrenheit lower than average • The northern Australian town of Julia Creek saw temperatures soar as high as 106 degrees.
Exxon Mobil filed a lawsuit against California late Friday on the grounds that two landmark new climate laws violate the oil giant’s free speech rights, The New York Times reported. The two laws would require thousands of large companies doing business in the state to calculate and report the greenhouse gas pollution created by the use of their products, so-called Scope 3 emissions. “The statutes compel Exxon Mobil to trumpet California’s preferred message even though Exxon Mobil believes the speech is misleading and misguided,” Exxon complained through its lawyers. California Governor Gavin Newsom’s office said the statutes “have already been upheld in court and we continue to have confidence in them.” He condemned the lawsuit, calling it “truly shocking that one of the biggest polluters on the planet would be opposed to transparency.”
China will delay introducing export controls on rare earths, an unnamed U.S. official told the Financial Times following two days of talks in Malaysia. For years, Beijing has been ratcheting up trade restrictions on the global supply of metals its industry dominates. But this month, China slapped the harshest controls yet on rare earths. In response, stocks in rare earth mining and refining companies soared. Despite what Heatmap’s Matthew Zeitlin called the “paradox of Trump’s critical mineral crusade” to mine even as he reduced demand from electric vehicle factories, “everybody wants to invest in critical minerals startups,” Heatmap’s Katie Brigham wrote. That — as frequent readers of this newsletter will recall — includes the federal government, which under the Trump administration has been taking equity stakes in major projects as part of deals for federal funding.
The Nuclear Regulatory Commission rewarded Bill Gates’ next-generation reactor company, TerraPower, with its final environment impact statement last week. The next step in the construction permit process is a final safety evaluation that the company expects to receive by the end of this year. If everything goes according to plan, TerraPower could end up winning the race to build the nation’s first commercial reactor to use a coolant other than water, and do so at a former coal-fired plant in the country’s top coal-producing state. “The Natrium plant in Wyoming, Kemmerer Unit 1, is now the first advanced reactor technology to successfully complete an environmental impact statement for the NRC, bringing us another step closer to delivering America’s next nuclear power plant,” said TerraPower president and CEO Chris Levesque.
A judge gave New York Governor Kathy Hochul’s administration until February 6 to issue rules for its long-delayed cap-and-invest program, the Albany Times-Union reported. The government was supposed to issue the guidelines that would launch the program as early as 2024, but continuously pushed back the release. “Early outlines of New York’s cap and invest program indicate that regulators were considering a relatively low price ceiling on pollution, making it easier for companies to buy their way out of compliance with the cap,” Heatmap’s Emily Pontecorvo wrote in January.

The Texas data center boom is being powered primarily with new wind, solar, and batteries, according to new analysis by the Energy Information Administration. Since 2021, electricity demand on the independent statewide grid operated by the Electric Reliability Council of Texas has soared. Over the past year, wind, solar, and batteries have been supplying that rising demand. Utility-scale solar generated 45 terawatt-hours of electricity in the first nine months of 2025. That’s 50% more than the same period in 2024 and nearly four times more than the same period in 2021. Wind generation, meanwhile, totaled 87 terawatt-hours for the first nine months of this year, up 4% from last year and 36% since 2021. “Together,” the analysis stated, “wind and solar generation met 36% of ERCOT’s electricity demand in the first nine months of 2025.”
The question isn’t whether the flames will come — it’s when, and what it will take to recover.
In the two decades following the turn of the millennium, wildfires came within three miles of an estimated 21.8 million Americans’ homes. That number — which has no doubt grown substantially in the five years since — represents about 6% of the nation’s population, including the survivors of some of the deadliest and most destructive fires in the country’s history. But it also includes millions of stories that never made headlines.
For every Paradise, California, and Lahaina, Hawaii, there were also dozens of uneventful evacuations, in which regular people attempted to navigate the confusing jargon of government notices and warnings. Others lost their homes in fires that were too insignificant to meet the thresholds for federal aid. And there are countless others who have decided, after too many close calls, to move somewhere else.
By any metric, costly, catastrophic, and increasingly urban wildfires are on the rise. Nearly a third of the U.S. population, however, lives in a county with a high or very high risk of wildfire, including over 60% of the counties in the West. But the shape of the recovery from those disasters in the weeks and months that follow is often that of a maze, featuring heart-rending decisions and forced hands. Understanding wildfire recovery is critical, though, for when the next disaster follows — which is why we’ve set out to explore the topic in depth.
The most immediate concerns for many in the weeks following a wildfire are financial. Homeowners are still required to pay the mortgage on homes that are nothing more than piles of ash — one study by the Federal Reserve Bank of Philadelphia found that 90-day delinquencies rose 4% and prepayments rose 16% on properties that were damaged by wildfires. Because properties destroyed in fires often receive insurance settlements that are lower than the cost to fully replace their home, “households face strong incentives to apply insurance funds toward the mortgage balance instead of rebuilding, and the observed increase in prepayment represents a symptom of broader frictions in insurance markets that leave households with large financial losses in the aftermath of a natural disaster,” the researchers explain.
Indeed, many people who believed they had adequate insurance only discover after a fire that their coverage limits are lower than 75% of their home’s actual replacement costs, putting them in the category of the underinsured. Homeowners still grappling with the loss of their residence and possessions are also left to navigate reams of required paperwork to get their money, a project one fire victim likened to having a “part-time job.” It’s not uncommon for fire survivors to wait months or even years for payouts, or to find that necessary steps to rebuilding, such as asbestos testing and dead tree removals, aren’t covered. Just last week, California Governor Gavin Newsom signed a new law requiring insurers to pay at least 60% of a homeowner’s personal property coverage on a total loss without a detailed inventory, up to $350,000. The original proposal called for a 100% payout, but faced intense insurance industry blowback .
Even if your home doesn’t burn to the ground, you might be affected by the aftermath of a nearby fire. In California, a fifth of homes in the highest-risk wildfire areas have lost insurance coverage since 2019, while premiums in those same regions have increased by 42%. Insurers’ jitters have overflowedspilled over into other Western states like Washington, where there are fewer at-risk properties than in California — 16% compared to 41% — but premiums have similarly doubled in some cases due to the perceived hazardrisks.
Some experts argue that people should be priced out of the wildland-urban interface and that managed retreat will help prevent future tragedies. But as I report in my story on fire victims who’ve decided not to rebuild, that’s easier said than done. There are only three states where insured homeowners have the legal right to replace a wildfire-destroyed home by buying a new property instead of rebuilding, meaning many survivors end up shackled to a property that is likely to burn again.
The financial maze, of course, is only one aspect of recovery — the physical and mental health repercussions can also reverberate for years. A study that followed survivors of Australia’s Black Saturday bush fires in 2009, which killed over 170 people, found that five years after the disaster, a fifth of survivors still suffered from “serious mental health challenges” like post-traumatic stress disorder. In Lahaina, two years after the fire, nearly half of the children aged 10 to 17 who survived are suspected of coping with PTSD.
Federal firefighting practices continue to focus on containing fires as quickly as possible, to the detriment of less showy but possibly more effective solutions such as prescribed burns and limits on development in fire-prone areas. Some of this is due to the long history of fire suppression in the West, but it persists due to ongoing political and public pressure. Still, you can find small and promising steps forward for forest management in places like Paradise, where the recreation and park district director has scraped together funds to begin to build a buffer between an ecosystem that is meant to burn and survivors of one of the worst fires in California’s history.
In the four pieces that follow, I’ve attempted to explore the challenges of wildfire recovery in the weeks and months after the disaster itself. In doing so, I’ve spoken to firefighters, victims, researchers, and many others to learn more about what can be done to make future recoveries easier and more effective.
The bottom line, though, is that there is no way to fully prevent wildfires. We have to learn to live alongside them, and that means recovering smarter, too. It’s not the kind of glamorous work that attracts TV cameras and headlines; often, the real work of recovery occurs in the many months after the fire is extinguished. But it also might just make the difference.
Wildfire evacuation notices are notoriously confusing, and the stakes are life or death. But how to make them better is far from obvious.
How many different ways are there to say “go”? In the emergency management world, it can seem at times like there are dozens.
Does a “level 2” alert during a wildfire, for example, mean it’s time to get out? How about a “level II” alert? Most people understand that an “evacuation order” means “you better leave now,” but how is an “evacuation warning” any different? And does a text warning that “these zones should EVACUATE NOW: SIS-5111, SIS-5108, SIS-5117…” even apply to you?
As someone who covers wildfires, I’ve been baffled not only by how difficult evacuation notices can be to parse, but also by the extent to which they vary in form and content across the United States. There is no centralized place to look up evacuation information, and even trying to follow how a single fire develops can require hopping among jargon-filled fire management websites, regional Facebook pages, and emergency department X accounts — with some anxious looking-out-the-window-at-the-approaching-pillar-of-smoke mixed in.
Google and Apple Maps don’t incorporate evacuation zone data. Third-party emergency alert programs have low subscriber rates, and official government-issued Wireless Emergency Alerts, or WEAs — messages that trigger a loud tone and vibration to all enabled phones in a specific geographic region — are often delayed, faulty, or contain bad information, none of which is ideal in a scenario where people are making life-or-death decisions. The difficulty in accessing reliable information during fast-moving disasters like wildfires is especially aggravating when you consider that nearly everyone in America owns a smartphone, i.e. a portal to all the information in the world.
So why is it still so hard to learn when and where specific evacuation notices are in place, or if they even apply to you? The answer comes down to the decentralized nature of emergency management in the United States.
A downed power line sparks a fire on a day with a Red Flag Warning. A family driving nearby notices the column of smoke and calls to report it to 911. The first responders on the scene realize that the winds are fanning the flames toward a neighborhood, and the sheriff decides to issue a wildfire warning, communicating to the residents that they should be ready to leave at a moment’s notice. She radios her office — which is now fielding multiple calls asking for information about the smoke column — and asks for the one person in the office that day with training on the alert system to compose the message.
Scenarios like these are all too common. “The people who are put in the position of issuing the messages are doing 20 other things at the same time,” Jeannette Sutton, a researcher at the University at Albany’s Emergency and Risk Communication Message Testing Lab, told me. “They might have limited training and may not have had the opportunity to think about what the messages might contain — and then they’re told by an incident commander, Send this, and they’re like, Oh my God, what do I do?”
The primary way of issuing wildfire alerts is through WEAs, with 78,000 messages sent since 2012. Although partnerships between local emergency management officials, the Federal Emergency Management Agency, the Federal Communications Commission, and cellular and internet providers facilitate the technology, it’s local departments that determine the actual content of the message. Messaging limits force some departments to condense the details of complicated and evolving fire events into 90 characters or fewer. Typos, confusing wording, and jargon inevitably abound.
Emergency management teams often prefer to err on the side of sending too few messages rather than too many for fear of inducing information overload. “We’re so attached to our devices, whether it’s Instagram or Facebook or text messages, that it’s hard to separate the wheat from the chaff, so to speak — to make sure that we are getting the right information out there,” John Rabin, the vice president of disaster management at the consulting firm ICF International and a former assistant administrator at the Federal Emergency Management Agency, told me. “One of the challenges for local and state governments is how to bring [pertinent information] up and out, so that when they send those really important notifications for evacuations, they really resonate.”
But while writing an emergency alert is a bit of an art, active prose alone doesn’t ensure an effective evacuation message.
California’s Cal Fire has found success with the “Ready, Set, Go” program, designed by the International Association of Fire Chiefs, which uses an intuitive traffic light framework — “ready” is the prep work of putting together a go-bag and waiting for more news if a fire is in the vicinity, escalating to the “go” of the actual evacuation order. Parts of Washington and Oregon use similar three-tiered systems of evacuation “levels” ranging from 1 to 3. Other places, like Montana, rely on two-step “evacuation warnings” and “evacuation orders.”
Watch Duty, a website and app that surged in popularity during the Los Angeles fires earlier this year, doesn’t worry about oversharing. Most information on Watch Duty comes from volunteers, who monitor radio scanners, check wildfire cameras, and review official law enforcement announcements, then funnel the information to the organization’s small staff, who vet it before posting. Though WatchDuty volunteers and staff — many of whom are former emergency managers or fire personnel themselves — actively review and curate the information on the app, the organization still publishes far more frequent and iterative updates than most people are used to seeing and interpreting. As a result, some users and emergency managers have criticized Watch Duty for having too much information available, as a result.
The fact that Watch Duty was downloaded more than 2 million times during the L.A. fires, though, would seem to testify to the fact that people really are hungry for information in one easy-to-locate place. The app is now available in 22 states, with more than 250 volunteers working around the clock to keep wildfire information on the app up to date. John Clarke Mills, the app’s CEO and co-founder, has said he created the app out of “spite” over the fact that the government doesn’t have a better system in place for keeping people informed on wildfires.
“I’ve not known too many situations where not having information makes it better,” Katlyn Cummings, the community manager at Watch Duty, told me. But while the app’s philosophy is “rooted in transparency and trust with our users,” Cummings stressed to me that the app’s volunteers only use official and public sources of information for their updates and never include hearsay, separating it from other crowd-sourced community apps that have proved to be less than reliable.
Still, it takes an army of a dozen full-time staff and over 200 part-time volunteers, plus an obsessively orchestrated Slack channel to centralize the wildfire and evacuation updates — which might suggest why a more official version doesn’t exist yet, either from the government or a major tech company. Google Maps currently uses AI to visualize the boundaries of wildfires, but stops short of showing users the borders of local evacuation zones (though it will route you around known road closures). A spokesperson for Google also pointed me toward a feature in Maps that shares news articles, information from local authorities, and emergency numbers when users are in “the immediate vicinity” of an actively unfolding natural disaster — a kind of do-it-yourself Watch Duty. The company declined to comment on the record about why Maps specifically excludes evacuation zones. Apple did not respond to a request for comment.
There is, of course, a major caveat to the usefulness of Watch Duty.
Users of the app tend to be a self-selecting group of hyper-plugged-in digital natives who are savvy enough to download it or otherwise know to visit the website during an unfolding emergency. As Rabin, the former FEMA official, pointed out, Watch Duty users aren’t the population that first responders are most concerned about — they’re like “Boy Scouts,” he said, because they’re “always prepared.” They’re the ones who already know what’s going on. “It’s reaching the folks that aren’t paying attention that is the big challenge,” he told me.
The older adult population is the most vulnerable in cases of wildfire. Death tolls often skew disproportionately toward the elderly; of the 30 people who died in the Los Angeles fires in January, for example, all but two were over 60 or disabled, with the average age of the deceased 77, the San Francisco Chronicle reported. Part of that is because adults 65 and older are more likely to have physical impairments that make quick or unplanned evacuations challenging. Social and technological isolation are also factors — yes, almost everyone in America has a smartphone, but that includes just 80% of those 65 and older, and only 26% of the older adult population feels “very confident” using computers or smartphones. According to an extensive 2024 report on how extreme weather impacts older adults by CNA, an independent, nonprofit research organization, “Evacuation information, including orders, is not uniformly communicated in ways and via media that are accessible to older adults or those with access and functional needs.”
Sutton, the emergency warning researcher, also cautioned that more information isn’t always better. Similar to the way scary medical test results might appear in a health portal before a doctor has a chance to review them with you (and calm you down), wildfire information shared without context or interpretation from emergency management officials means the public is “making assumptions based upon what they see on Watch Duty without actually having those official messages coming from the public officials who are responsible for issuing those messages,” she said. One role of emergency managers is to translate the raw, on-the-ground information into actionable guidance. Absent that filter, panic is probable, which could lead to uncontrollable evacuation traffic or exacerbate alert fatigue. Alternatively, people might choose to opt out of future alerts or stop checking for updates.
Sutton, though she’s a strong advocate of creating standardized language for emergency alerts — “It would be wonderful if we had consistent language that was agreed upon” between departments, she told me — was ultimately skeptical of centralizing the emergency alert system under a large agency like FEMA. “The movement of wildfires is so fast, and it requires knowledge of the local communities and the local terrain as well as meteorological knowledge,” she said. “Alerts and warnings really should be local.”
The greater emphasis, Sutton stressed, should be on providing emergency managers with the training they need to communicate quickly, concisely, and effectively with the tools they already have.
The high wire act of emergency communications, though, is that while clear and regionally informed messages are critical during life-or-death situations, it also falls on residents in fire-risk areas to be ready to receive them. California first adopted the “Ready, Set, Go” framework in 2009, and it has spent an undisclosed amount of money over the years on a sustained messaging blitz to the public. (Cal Fire’s “land use planning and public education budget is estimated at $16 million, and funds things like the updated ad spots it released as recently as this August.) Still, there is evidence that even that has not been enough — and Cal Fire is the best-resourced firefighting agency in the country, setting the gold standard for an evacuation messaging campaign.
Drills and test messages are one way to bring residents up to speed, but participation is typically very low. Many communities and residents living in wildfire-risk areas continue to treat the threat with low urgency — something to get around to one day. But whether they’re coming from your local emergency management department or the White House itself, emergency notices are only as effective as the public is willing and able to heed them.