Cybertruck With Makeshift Bomb Explodes; Exoskeleton Minimizes Damage

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On January 1st, in what could potentially have been related to other terror-related incidents, a Cybertruck loaded with firework mortars, gas, and other explosive materials, was detonated outside a Trump-affiliated hotel. This information was provided at a press conference from the Las Vegas Police Department. The FBI has declared that the incident was intentional and that it is being investigated as a potential act of terrorism.

The press conference confirmed that the only fatality was the driver. Several others were treated at a local hospital.

🚨 JUST IN: CNN reports the Cybertruck explosion at Trump Tower Vegas came from a detonation system controlled by the driver, plus explosives such as fireworks, gas tanks and camping fuel.

Car bomb.pic.twitter.com/XjPAUMQSN7

— Eric Daugherty (@EricLDaugh) January 1, 2025

We’re going to specifically look at what happened, how the Cybertruck potentially reduced the damage to the hotel and bystanders, and Elon Musk’s comments on the incident.

The Incident

After the detonation, the Cybertruck’s cabin was on fire, which kept burning until first responders managed to put it out with a combination of water and a tarp. Interestingly, even after the detonation, the Cybertruck’s battery was intact. There was no battery fire, and the battery did itself did not explode.

🚨New footage of the Tesla Cybertruck exploding in front of the Trump hotel

It looks like fireworks exploded

This was intentional

Someone was sending a message to Trump & Elon pic.twitter.com/aTpe0oM6jg

— DC_Draino (@DC_Draino) January 1, 2025

In fact, as you can see in the picture below, the tires are still intact, and even one of the headlights is on - indicating that the incident did not damage the battery. Once the fire continued, the pyro fuze blew, which cut any remaining power and isolated the high-voltage battery from other electrical systems in the truck.

The Cybertruck in the immediate moments after the explosion, with the cabin burning but the headlights on.

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Shortly after the incident, authorities released imagery of the bed of the Cybertruck, which was confirmed to be loaded with leftover fireworks and gas tanks. Authorities are crediting the Cybertruck’s exoskeleton exterior with reducing the damage done. The bed of the Cybertruck contained the explosion and directed it upwards and outwards rather than around the vehicle.

The image released by authorities with the remains of the explosives in the bed.

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This essentially meant that rather than serving as a vehicle-based improvised explosive device (VBIED), Cybertruck essentially stopped the explosion with the strength of its frame and exoskeleton. It is interesting to see just how strong and resilient the truck is, even when the explosion originated from within, rather than outside it.

🚨 #BREAKING: Las Vegas Police release new video of the exploded Cybertruck outside of the Trump Hotel, showing explosive ordinances in the back

Police credited the lack of damage to the Trump Hotel to the strength of the Cybertruck, as it remained mostly intact.

“The explosion… pic.twitter.com/lajQZX2pOI

— Nick Sortor (@nicksortor) January 2, 2025

Elon Musk’s Comments

Elon commented throughout the incident and in the following hours.

Shortly after the incident, Elon Musk confirmed that Tesla’s teams were investigating the incident, and then shortly afterward confirmed that the Cybertruck - at least up to the point of the explosion, was reporting nominal vehicle health.

In the hours after the incident, it was revealed that both the Cybertruck, as well as the F-150 Lightning used in the other terror-related incident, were rented from Turo, as per Elon. Turo is a company that works with vehicle owners to arrange rentals of their vehicles, netting them some extra income while their vehicle is used by someone else. 

Turo’s peer-to-peer model has resulted in an exceptionally high number of insurance claims and incidents relative to standardized vehicle rentals, with unauthorized drivers stealing or damaging rented vehicles, modifying them, or doing other less-than-above-board tasks with them. After this incident, Turo has come under a considerable amount of scrutiny in how it rents out vehicles.

Musk also commented that the Cybertruck was the worst vehicle for this kind of terrorist attack. The truck redirected the explosion upward, reducing potential injuries and property damage. Even the hotel’s glass doors remained intact.

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Elon Musk Takes Over Tesla Sales For North America and Europe

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Following the recent departure of longtime deputy Omead Afshar, Elon Musk has stepped up to personally oversee Tesla’s sales operations in North America and Europe, according to a new report from Bloomberg, which cites people familiar with the matter.

This is a big shake-up that places Elon directly in charge of fixing Tesla’s sales slump in two key markets. The move has come as Tesla reported nearly on-the-ball deliveries for Q2 2025, hitting 384k deliveries, against a consensus street estimate of 385k deliveries.

New Leadership Structure

According to the report, Afshar’s former responsibilities are being divided between Elon and Senior VP Tom Zhu. Elon will now directly oversee the sales organizations in the US and Europe. As part of this change, Troy Jones, Tesla’s VP of North America Sales, will now report to Elon.

Tom Zhu, who is based in China, will continue to manage sales in Asia while also taking on the critical new responsibility of overseeing global manufacturing operations. Leadership of Tesla’s factories in Fremont, California, and Texas will now report to Tom. Tesla Energy’s factories will still report to Michael Snyder, VP of Energy and Charging.

For now, we’re unsure whether this is a temporary management structure, if the reporting lines will shift, or if Tesla will either hire or promote a new Senior VP of Sales to cover the duties.

Tackling the Sales Slump

The restructuring is a response to the recent downturn in sales. Analysts estimated that Tesla would deliver approximately 385k vehicles, which they essentially managed to achieve. However, deliveries fell short of production numbers, with Tesla delivering just 373k of the 410k vehicles produced.

This situation is particularly challenging in Central Europe. Europe has been noted as Tesla’s weakest market, according to Elon. Interestingly, Elon previously stated in several interviews over the last few months that there was no demand issue, but it now seems that there have been some issues with growing sales.

With Tesla’s new vehicle registrations across Europe having plunged 37% since the start of this year, and the rollout of the new affordable model, as well as more affordable versions of the Model 3 and Model Y seemingly delayed, there is a lot to do. Some analysts are projecting a second consecutive annual decline in Tesla’s global car sales for 2025.

The Rise of Tom Zhu

A key note in this reshuffle is the return of Tom Zhu to a top global operations role. Tom had previously led the construction and ramp-up of Giga Shanghai and was then promoted to Senior VP of Automotive Operations in 2023. Last year, he was sent back to China to focus on tackling regulatory hurdles with the launch of FSD in China.

His return to overseeing global manufacturing, even while staying in China, is a significant vote of confidence in his abilities. It also comes as Chinese authorities have begun drafting new autonomy guidelines to clear a path for the broader rollout of both Supervised and potentially Unsupervised FSD.

Wrap Up

This major restructuring shows that Elon is once again focused on Tesla and plans to personally tackle the company’s biggest issues. This will require a careful hand, as Elon’s forays into politics have caused self-admitted brand damage. If anyone can turn this around and have the Model Y return as the Best-Selling Vehicle of 2026, having just missed out by a few thousand vehicles to the Toyota RAV4, it is Elon.

Alongside him, Tom Zhu will be responsible for streamlining global manufacturing and ensuring that Tesla is ready to launch their new affordable variants in the near future, which should also make a considerable dent in sales.

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Tesla Shares Q2 2025 Numbers: Production and Deliveries Up Over Last Quarter

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Tesla has released its Q2 2025 production and delivery numbers, revealing an improvement in production and deliveries over Q1, but still down from a year ago.

Tesla produced 410,244 vehicles in Q2, nearly equal to their production a year ago, which was 410,831 vehicles. Production for this quarter was significantly up compared to Q1 2025, which only saw 362,615 vehicles produced. While production numbers matched those of a year ago, actual deliveries were down.

Q2 2025 saw Tesla deliver 384,122 vehicles, which was down approximately 59,000 units compared to the same period last year, but up by approximately 48,000 vehicles, or about 14% compared to Q1.

Breakdown by Model

The Model 3/Y segment continues to dominate Tesla’s production profile, accounting for 396,835 units produced and 373,728 delivered in Q2 2025. Deliveries for the “Other Models” category—which includes the Cybertruck, Model S, and Model X—were down compared to the previous quarter, with just 10,394 vehicles delivered, a 20% decline. Compared to a year ago, the drop for these vehicles is even more drastic, with sales being down 52%. Tesla refreshed its Model S and Model X last month with new features; however, the update was much smaller than expected and likely didn’t help much in increasing sales for these vehicles.

Tesla doesn’t break down Cybertruck sales separately, but those deliveries are expected to be down as well.

Tesla noted that 2% of total deliveries this quarter were accounted for under operating lease agreements, consistent with the same quarter last year.

Context and Market Response

While the numbers exceeded some bearish expectations, the year-over-year delivery drop is Tesla’s second straight quarterly decline. Analysts attribute declining sales to increasing EV competition and reputation issues.

Still, investors found relief in the improved quarter when compared to Q1. The stock rebounded about 4% yesterday on the news.

Looking ahead, all eyes are on Tesla’s Robotaxi network, the Cybercab, and the more affordable model, which is slated to be released later this year.

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