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How Elon Musk and Obama both argue for cleantech despite political uncertainty

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SpaceX CEO Elon Musk shows President Barack Obama around the company’s Cape Canaveral rocket processing site in 2010. (Credit: Bill Ingalls / NASA)

In spite of tremendous obstacles, Elon Musk has changed the way the world thinks about energy usage. He has defied odds with his rocket company SpaceX despite having to face-off against government-funded competition. He has pushed Tesla’s direct sales model even when hit with major lobbying blockades from the Big Three car manufacturers in Detroit. Musk’s Master Plan Part Deux outlined a vision for the future of sustainability and its necessity for the planet. It’s an argument that many pundits have rejected as too costly, complicated, or just plain crazy.

On Monday, President Barack Obama wrote in the journal Science that a national policy to embrace renewable energy over a continued focus on fossil fuel production makes economic sense. President-elect Trump has decried calls for the U.S. to transition to alternative fuels.

Both Musk and Obama speak to energy policies that would change the way people heat their homes, commute to work, and depend on big utilities for energy provision. In his first Master Plan, Musk offered offered a pathway in which a low volume, expensive car would create a profit that would eventually be directed to create an affordable, high volume car. That first plan also emphasized the importance of solar power provision. He reiterated in Master Plan Deux that “we must at some point achieve a sustainable energy economy or we will run out of fossil fuels to burn and civilization will collapse.” Increasing atmospheric and oceanic carbon levels threatens life on the planet, and Musk has said all along that the faster we achieve sustainability, the better.

Obama noted in the Science article that many businesses have come to the independent conclusion that reducing emissions is good for the environment and for profitability. He noted that millions of U.S. citizens already are employed in jobs related to energy-efficient technologies, adding that the cost of renewable energy has continued to decline, partly because of government incentives but primarily due to market forces. “Although our understanding of the impacts of climate change is increasingly and disturbingly clear,” Obama states, “there is still debate about the proper course for U.S. policy.” Obama goes on to say that the United States is showing that greenhouse gas mitigation “need not conflict with economic growth. Rather, it can boost efficiency, productivity, and innovation.”

Musk’s successful and sustainable business practices correlate with President Obama’s conclusions. Tesla’s commercial Powerpack system, alongside solar company SolarCity, combines integrated energy generation and storage. Tesla production goals include improved factory efficiency 5X to 10X by 2022, which will, in turn, make Tesla’s vehicles more affordable. With radar, sonar, and advanced AI, Tesla’s Autopilot may end up 10X safer than human drivers. Tesla’s vision for the future is not limited to cars, as Musk wants to reinvent all kinds of vehicles such as massive electric 18-wheelers, which would dramatically reduce cargo shipping costs and could have revolutionary economic and environmental implications.

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These types of alternative fuel innovations are just what Obama has outlined in his Science article. “The business case for clean energy is growing, and the trend toward a cleaner power sector can be sustained regardless of near-term federal policies,” he writes, adding, “I believe the trend toward clean energy is irreversible.”

“There is always tension between the visionary and the day-to-day, but that’s what causes things to happen as you figure out how the world is going to be,” offers Ian Wright, whose startup, Tesla, has propelled Musk toward uber success. “It’s really hard to imagine how Elon does it all. He’s human like everyone else. It hasn’t been smart to bet against him.”

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Carolyn Fortuna is a writer and researcher with a Ph.D. in education from the University of Rhode Island. She brings a social justice perspective to environmental issues. Please follow me on Twitter and Facebook and Google+

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Tesla dispels reports of ‘sales suspension’ in California

“This was a “consumer protection” order about the use of the term “Autopilot” in a case where not one single customer came forward to say there’s a problem.

Sales in California will continue uninterrupted.”

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Credit: Tesla

Tesla has dispelled reports that it is facing a thirty-day sales suspension in California after the state’s Department of Motor Vehicles (DMV) issued a penalty to the company after a judge ruled it “misled consumers about its driver-assistance technology.”

On Tuesday, Bloomberg reported that the California DMV was planning to adopt the penalty but decided to put it on ice for ninety days, giving Tesla an opportunity to “come into compliance.”

Tesla enters interesting situation with Full Self-Driving in California

Tesla responded to the report on Tuesday evening, after it came out, stating that this was a “consumer protection” order that was brought up over its use of the term “Autopilot.”

The company said “not one single customer came forward to say there’s a problem,” yet a judge and the DMV determined it was, so they want to apply the penalty if Tesla doesn’t oblige.

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However, Tesla said that its sales operations in California “will continue uninterrupted.”

It confirmed this in an X post on Tuesday night:

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The report and the decision by the DMV and Judge involved sparked outrage from the Tesla community, who stated that it should do its best to get out of California.

One X post said California “didn’t deserve” what Tesla had done for it in terms of employment, engineering, and innovation.

Tesla has used Autopilot and Full Self-Driving for years, but it did add the term “(Supervised)” to the end of the FSD suite earlier this year, potentially aiming to protect itself from instances like this one.

This is the first primary dispute over the terminology of Full Self-Driving, but it has undergone some scrutiny at the federal level, as some government officials have claimed the suite has “deceptive” naming. Previous Transportation Secretary Pete Buttigieg was vocally critical of the use of the name “Full Self-Driving,” as well as “Autopilot.”

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New EV tax credit rule could impact many EV buyers

We confirmed with a Tesla Sales Advisor that any current orders that have the $7,500 tax credit applied to them must be completed by December 31, meaning delivery must take place by that date. However, it is unclear at this point whether someone could still claim the credit when filing their tax returns for 2025 as long as the order reflects an order date before September 30.

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tesla showroom
Credit: Tesla

Tesla owners could be impacted by a new EV tax credit rule, which seems to be a new hoop to jump through for those who benefited from the “extension,” which allowed orderers to take delivery after the loss of the $7,500 discount.

After the Trump Administration initiated the phase-out of the $7,500 EV tax credit, many were happy to see the rules had been changed slightly, as deliveries could occur after the September 30 cutoff as long as orders were placed before the end of that month.

However, there appears to be a new threshold that EV buyers will have to go through, and it will impact their ability to get the credit, at least at the Point of Sale, for now.

Delivery must be completed by the end of the year, and buyers must take possession of the car by December 31, 2025, or they will lose the tax credit. The U.S. government will be closing the tax credit portal, which allows people to claim the credit at the Point of Sale.

We confirmed with a Tesla Sales Advisor that any current orders that have the $7,500 tax credit applied to them must be completed by December 31, meaning delivery must take place by that date.

However, it is unclear at this point whether someone could still claim the credit when filing their tax returns for 2025 as long as the order reflects an order date before September 30.

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If not, the order can still go through, but the buyer will not be able to claim the tax credit, meaning they will pay full price for the vehicle.

This puts some buyers in a strange limbo, especially if they placed an order for the Model Y Performance. Some deliveries have already taken place, and some are scheduled before the end of the month, but many others are not expecting deliveries until January.

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Elon Musk takes latest barb at Bill Gates over Tesla short position

Bill Gates placed a massive short bet against Tesla of ~1% of our total shares, which might have cost him over $10B by now

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Elon Musk took his latest barb at former Microsoft CEO Bill Gates over his short position against the company, which the two have had some tensions over for a number of years.

Gates admitted to Musk several years ago through a text message that he still held a short position against his sustainable car and energy company. Ironically, Gates had contacted Musk to explore philanthropic opportunities.

Elon Musk explains Bill Gates beef: He ‘placed a massive bet on Tesla dying’

Musk said he could not take the request seriously, especially as Gates was hoping to make money on the downfall of the one company taking EVs seriously.

The Tesla frontman has continued to take shots at Gates over the years from time to time, but the latest comment came as Musk’s net worth swelled to over $600 billion. He became the first person ever to reach that threshold earlier this week, when Tesla shares increased due to Robotaxi testing without any occupants.

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Musk refreshed everyone’s memory with the recent post, stating that if Gates still has his short position against Tesla, he would have lost over $10 billion by now:

Just a month ago, in mid-November, Musk issued his final warning to Gates over the short position, speculating whether the former Microsoft frontman had still held the bet against Tesla.

“If Gates hasn’t fully closed out the crazy short position he has held against Tesla for ~8 years, he had better do so soon,” Musk said. This came in response to The Gates Foundation dumping 65 percent of its Microsoft position.

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Tesla CEO Elon Musk sends final warning to Bill Gates over short position

Musk’s involvement in the U.S. government also drew criticism from Gates, as he said that the reductions proposed by DOGE against U.S.A.I.D. were “stunning” and could cause “millions of additional deaths of kids.”

“Gates is a huge liar,” Musk responded.

It is not known whether Gates still holds his Tesla short position.

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