Blood in the Machine: The Podcast
Jul 24, 2026 · 1 hr · 15 segments
Elon Musk is not the richest man in the world merely because he’s good at selling cars or rockets at a profitable margin. That might have sufficed for richest men in the world of decades past. But…
Ryan HodesPanelistAnd everybody's been watching the company extra carefully, especially since SpaceX made it splashy IPO not so long ago and has been in a free fall more or less ever since to the point where it has now sunk below its initial IPO offering value.
And so investors and the tech world were watching as Musk made his commentary about Tesla's most recent earnings report.
But since it's rolling so much money back into AI investment, into investment into its humanoid robot Optimus, that it actually missed its earnings projection and Wall Street got a little angry.
The stock has been sliding ever since, at least at the time of this recording, making it a fellow traveler to the SpaceX stock.
The New York Times reports, and I quote, "...that Tesla reported this month that car sales were stronger than analysts had expected, largely because increases in Europe more than made up for declines in the United States." That should have been a good omen for profits, but the impact was muted because Tesla cut prices, offering cheaper versions of its Model Y and Model 3 vehicles, as well as car loans at discounted rates.
It continues, car sales account for more than 70% of Tesla's revenue, but investors are more focused on the company's efforts to develop self-driving taxis and robots with human-like form.
Tesla's $1.2 trillion stock market value, many times the value of any other carmaker, is predicated on the success of those products.
Elon Musk is selling a vision of the world, an idea of things to come, and he has to continually roll these things out.
The other major tech company that had an earnings announcement on the same day was Alphabet, or Google, as we all know them, which announced that its profit had quadrupled to $112 billion.
Now I will again quote the New York Times, profit rose to $112.1 billion, quadrupling from $28.2 billion a year earlier, boosted by major investments that Google has made in recent years in other AI-related companies like SpaceX.
Gains tied to those investments were valued at about $99 billion, Google said, and contributed $77 billion to overall profit, especially with SpaceX going public in June.
Now, along with the investments in AI companies, I should note that Google's other major growth area was in its cloud services business, in which it is selling cloud compute to other AI companies and selling its AI tools along with it.
In case we needed another data point, in the AI bubble is looking frothier than ever department, I don't think you could do much better than this.
Elsewhere in the world of dubious AI news, OpenAI has announced that one of its models has quote, went rogue and hacked a startup by itself.
The Guardian reports that, OpenAI has revealed that an autonomous AI agent powered by its technology went rogue during a test, accessed the open web, and hacked a prominent startup by itself in an unprecedented incident.
And everybody's been watching the company extra carefully, especially since SpaceX made it splashy IPO not so long ago and has been in a free fall more or less ever since to the point where it has now sunk below its initial IPO offering value.
And so investors and the tech world were watching as Musk made his commentary about Tesla's most recent earnings report.
But since it's rolling so much money back into AI investment, into investment into its humanoid robot Optimus, that it actually missed its earnings projection and Wall Street got a little angry.
The stock has been sliding ever since, at least at the time of this recording, making it a fellow traveler to the SpaceX stock.
The New York Times reports, and I quote, "...that Tesla reported this month that car sales were stronger than analysts had expected, largely because increases in Europe more than made up for declines in the United States." That should have been a good omen for profits, but the impact was muted because Tesla cut prices, offering cheaper versions of its Model Y and Model 3 vehicles, as well as car loans at discounted rates.
It continues, car sales account for more than 70% of Tesla's revenue, but investors are more focused on the company's efforts to develop self-driving taxis and robots with human-like form.
Tesla's $1.2 trillion stock market value, many times the value of any other carmaker, is predicated on the success of those products.
Elon Musk is selling a vision of the world, an idea of things to come, and he has to continually roll these things out.
The other major tech company that had an earnings announcement on the same day was Alphabet, or Google, as we all know them, which announced that its profit had quadrupled to $112 billion.
Now I will again quote the New York Times, profit rose to $112.1 billion, quadrupling from $28.2 billion a year earlier, boosted by major investments that Google has made in recent years in other AI-related companies like SpaceX.
Gains tied to those investments were valued at about $99 billion, Google said, and contributed $77 billion to overall profit, especially with SpaceX going public in June.
Now, along with the investments in AI companies, I should note that Google's other major growth area was in its cloud services business, in which it is selling cloud compute to other AI companies and selling its AI tools along with it.
In case we needed another data point, in the AI bubble is looking frothier than ever department, I don't think you could do much better than this.
Elsewhere in the world of dubious AI news, OpenAI has announced that one of its models has quote, went rogue and hacked a startup by itself.
The Guardian reports that, OpenAI has revealed that an autonomous AI agent powered by its technology went rogue during a test, accessed the open web, and hacked a prominent startup by itself in an unprecedented incident.
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