News
Elon Musk wants the Government to be a referee, not a player in the game of industry and innovation
Elon Musk is one of the most innovative minds to ever exist in the tech community. With his multiple companies providing successful changes in how some industries, like automotive, are looked at, Musk is a proven CEO with a track record to back it up. His many ideas basically changed the idea of what it is like to drive a car, which many of us thought would be dominated by gas and diesel-powered engines for years to come. An innovative mind and a lot of hard work undoubtedly contributed to Tesla’s success, and Musk has no interest in giving credit to anyone who didn’t earn it.
With the election coming to a close and a new Presidential campaign being selected to run the United States for the next four years, Musk was recently asked during an interview with the Wall Street Journal whether President-Elect Joe Biden’s plans to spend big on industry and innovation were a good thing. Musk doesn’t seem to have a problem with the idea, but he is vocal about the fact that the government should do more regulating than contributing. The role of Government, after all, is to enact laws and make sure they are abided by citizens. Additionally, assisting with companies’ innovation is something the Government shouldn’t stick its nose up at. Still, Musk just hopes that it plays more of an administrative role instead of becoming a “player in the game.”
A big thanks to our long-time supporters and new subscribers! Thank you.
“It’s the Government’s role to establish the rules of the game and then ensure that those rules are properly enforced,” Musk said. The CEO even compared the Government’s role to that of a referee in a game of football: Know the rules, enforce them correctly, make sure the game is fair.
What the Government doesn’t need to do is stay out of the way of the big companies who are working to innovate the processes of daily life to benefit them and their objectives. “I think when the Government does not do a great job is when they want to not just be a referee on the field, they want to be a player on the field. This does not end up in a good situation.”
The issue with the Government overreaching into the field of industry and innovation is that they will “pick technology winners and losers” instead of letting companies play out their innovation themselves. This could lead to small companies being undermined even if they have ideas or technology that larger companies don’t have access to.
This scenario, if Government was overly involved in tech and innovation, could have crippled Tesla’s efforts when the company was just starting to churn out vehicles in 2008. Even though Tesla had established itself as a player in electric vehicles, it was a small, relatively unknown company that faced massive problems due to lack of funds. Nearly shutting its doors after issues with the original Roadster, Tesla somehow overcame the adversity and received more investor money.
Now, imagine if the Government would have been a player instead of a referee in this scenario. It would have likely given a large financial assistance package to a well-developed, large scale automaker like Ford or GM to develop EVs. Instead, it stayed out of the innovation portion of the equation and let the players decide the game for themselves. Tesla ended up becoming the leader in EVs, while GM and Ford are failing to catch up. It’s fairly safe to say that without Tesla, EVs would not be what they are today. The legacy automakers that exist in the universe of automotive manufacturing would likely have cranked out one or two low-range models because their primary focus is still on gas-powered cars and not on electrification.
This whole picture perfectly aligns with how Tesla’s story has played out thus far. It is fairly obvious that the Government in 2008 would have sided with a company with proven infrastructure, and not some company who had a shot in the dark to change the entire framework of vehicle manufacturing. This is where Musk made his next point: Make the rules that incentivize the outcome, not the path.
The ultimate goal is to let companies figure out issues on their own. There is no reason to have Government programs essentially hold the hands of private industry. There needs to be more of a focus on the end goal and not the path a company takes to get there. Rarely is the road to success a straight and narrow path. Many companies, Tesla being a prime example, have to fight and struggle to create a new, innovative project. Tesla’s story is perfect evidence that the end goal takes a lot of persistence and it doesn’t need to be filled with hand-holding from large Government entities. While Biden’s plan to pump money into innovation and industry may help some companies get back on their feet in dire times of need, it shouldn’t hold the hands of these large companies whose job it is to figure out the answer to problems.
When large car companies begin to manufacture and deliver electric vehicles that are good for consumers, then they should be rewarded. Riding on the coattails of Government assistance packages that don’t necessarily guarantee innovation is the wrong way to go about things. When companies prove that they are in the business of creating a great product, then the rewards should come in. It’s that simple.
On behalf of the entire Teslarati team, we’re working hard behind the scenes on bringing you more personalized members benefits, and can’t thank you enough for your continued support!
News
Samsung nears Tesla AI chip ramp with early approval at TX factory
This marks a key step towards the tech giant’s production of Tesla’s next-generation AI5 chips in the United States.
Samsung has received temporary approval to begin limited operations at its semiconductor plant in Taylor, Texas.
This marks a key step towards the tech giant’s production of Tesla’s next-generation AI5 chips in the United States.
Samsung clears early operations hurdle
As noted in a report from Korea JoongAng Daily, Samsung Electronics has secured temporary certificates of occupancy (TCOs) for a portion of its semiconductor facility in Taylor. This should allow the facility to start operations ahead of full completion later this year.
City officials confirmed that approximately 88,000 square feet of Samsung’s Fab 1 building has received temporary approval, with additional areas expected to follow. The overall timeline for permitting the remaining sections has not yet been finalized.
Samsung’s Taylor facility is expected to manufacture Tesla’s AI5 chips once mass production begins in the second half of the year. The facility is also expected to produce Tesla’s upcoming AI6 chips.
Tesla CEO Elon Musk recently stated that the design for AI5 is nearly complete, and the development of AI6 is already underway. Musk has previously outlined an aggressive roadmap targeting nine-month design cycles for successive generations of its AI chips.
Samsung’s U.S. expansion
Construction at the Taylor site remains on schedule. Reports indicate Samsung plans to begin testing extreme ultraviolet (EUV) lithography equipment next month, a critical step for producing advanced 2-nanometer semiconductors.
Samsung is expected to complete 6 million square feet of floor space at the site by the end of this year, with an additional 1 million square feet planned by 2028. The full campus spans more than 1,200 acres.
Beyond Tesla, Samsung Foundry is also pursuing additional U.S. customers as demand for AI and high-performance computing chips accelerates. Company executives have stated that Samsung is looking to achieve more than 130% growth in 2-nanometer chip orders this year.
One of Samsung’s biggest rivals, TSMC, is also looking to expand its footprint in the United States, with reports suggesting that the company is considering expanding its Arizona facility to as many as 11 total plants. TSMC is also expected to produce Tesla’s AI5 chips.
News
Anti-Tesla union leader ditches X, urges use of Threads instead
Tesla Sweden and IF Metall have been engaged in a bitter dispute for over two years now.
Marie Nilsson, chair of Sweden’s IF Metall union and a prominent critic of Tesla, has left X and is urging audiences to follow the union on Meta’s Threads instead.
Tesla Sweden and IF Metall have been engaged in a bitter dispute for over two years now.
Anti-Tesla union leader exits X
In a comment to Dagens Arbete (DA), Nilsson noted that her exit from X is not formally tied to IF Metall’s long-running labor dispute with Tesla Sweden. Still, she stated that her departure is affected by changes to the platform under Elon Musk’s leadership.
“We have stayed because many journalists pick up news there. But as more and more people have left X, we have felt that the standard has now been reached on that platform,” she said.
Jesper Pettersson, press officer at IF Metall, highlighted that the union’s departure from X is only indirectly linked to Tesla Sweden and Elon Musk. “Indirectly it does, since there is a lot of evidence that his ownership has caused the change in the platform to be so significant.
“We have nevertheless assessed that the platform had value for reaching journalists, politicians and other opinion leaders. But it is a microscopic proportion of the public and our members who are there, and now that value has decreased,” Petterson added.
IF Metall sees Threads as an X alternative
After leaving X, IF Metall has begun using Threads, Meta’s alternative to the social media platform. The union described the move as experimental, noting that it is still evaluating how effective the platform will be for outreach and visibility.
Pettersson acknowledged that Meta also does not operate under Sweden’s collective bargaining model, but said the union sees little alternative if it wants to remain visible online.
“In a perfect world, all large international companies would be supporters of the Swedish model when they come here. But unfortunately, the reality is not like that. If we are to be visible at all in this social media world, we have to play by the rules of the game. The alternative would be to become completely invisible, and that would not benefit our members,” he said.
Despite many recent rumors and various reports, Elon Musk confirmed today that SpaceX is not developing a phone based on Starlink, not once, but twice.
Today’s report from Reuters cited people familiar with the matter and stated internal discussions have seen SpaceX executives mulling the idea of building a mobile device that would connect directly to the Starlink satellite constellation.
Musk did state in late January that SpaceX developing a phone was “not out of the question at some point.” However, He also said it would have to be a major difference from current phones, and would be optimized “purely for running max performance/watt neural nets.”
Not out of the question at some point. It would be a very different device than current phones. Optimized purely for running max performance/watt neural nets.
— Elon Musk (@elonmusk) January 30, 2026
While Musk said it was not out of the question “at some point,” that does not mean it is currently a project SpaceX is working on. The CEO reaffirmed this point twice on X this afternoon.
Musk said, “Reuters lies relentlessly,” in one post. In the next, he explicitly stated, “We are not developing a phone.”
Reuters lies relentlessly
— Elon Musk (@elonmusk) February 5, 2026
We are not developing a phone
— Elon Musk (@elonmusk) February 5, 2026
Musk has basically always maintained that SpaceX has too many things going on, denying that a phone would be in the realm of upcoming projects. There are too many things in the works for Musk’s space exploration company, most notably the recent merger with xAI.
SpaceX officially acquires xAI, merging rockets with AI expertise
A Starlink phone would be an excellent idea, especially considering that SpaceX operates 9,500 satellites, serving over 9 million users worldwide. 650 of those satellites are dedicated to the company’s direct-to-device initiative, which provides cellular coverage on a global scale.
Nevertheless, there is the potential that the Starlink phone eventually become a project SpaceX works on. However, it is not currently in the scope of what the company needs to develop, so things are more focused on that as of right now.
Samsung nears Tesla AI chip ramp with early approval at TX factory
Anti-Tesla union leader ditches X, urges use of Threads instead
