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Elon Musk is trying to help solve the Flint Water Crisis
After building a mini-submarine to aid in the rescue attempt of the members of the Wild Boar soccer team in Thailand, Elon Musk is now flexing his philanthropic muscles towards a long-standing issue in the United States — the Flint Water Crisis.
Musk previously noted on Twitter that he has already been helping out the citizens of Flint. Spurred on by some Flint residents and activists for the city, however, Musk opted to take a more hands-on approach. The Tesla and SpaceX CEO promptly coordinated with individuals testing the contamination levels of the city’s water system, and by Wednesday, Musk has provided an email address, flint@x.com, where residents can send the results of their water’s ppm (parts per million) and ppb (parts per billion) levels.
Musk’s pledge to help the people of Flint has mostly been met positively by the online community, with several of his followers even offering to lend a hand to a “barnstorming weekend” aimed at installing water filters in the homes of the city’s residents. Musk also reacted favorably to the idea of utilizing Flint’s local plumbers to help in the initiative. Despite being in China to discuss Tesla’s plans of building Gigafactory 3 in Shanghai, Musk further stated that he would call Flint Mayor Karen Weaver about plans to address the city’s water problems.
Gathering input this week, will begin taking action next week and let people know how they can help
— Elon Musk (@elonmusk) July 12, 2018
Just like his efforts to help in the Thailand cave rescue operations, Musk’s pledge to help the city of Flint became a target for his staunch critics online. Key Flint activist Mari Copeny, better known as Little Miss Flint due to her letter to then-president Barack Obama about the ongoing water crisis, clarified Musk’s involvement, however, stating that the city is appreciative of the serial tech entrepreneur’s efforts to help.
Hey world. Let’s set the record straight. My team has been working with @elonmusk and his team for over a week to figure out the best solution to help #Flint with the #FlintwaterCrisis
Extremely grateful for him and all he has done so far.— Mari Copeny (@LittleMissFlint) July 12, 2018
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The Flint Water Crisis started in April 2014, after the city’s drinking water source was changed from Lake Huron and the Detroit River to the much cheaper Flint River. Insufficient water treatment caused lead to be leached from lead water pipes into the residents’ drinking water. Lead pipes are viable pipes for water systems, provided that corrosion inhibitors are used to prevent lead from contaminating the water. A common corrosion inhibitor is orthophosphate, which forms low-solubility complexes with the lead in the pipes. Orthophosphates were used in Flint’s systems when the drinking water was coming from Detroit, but when the shift to the Flint River was conducted, no orthophosphate or any other anti-corrosion inhibitors were used. The absence of these inhibitors is behind the harrowing images of rust-colored water coming from Flint’s water supply.
The lead-contaminated water caused several grave problems for Flint’s residents. Between 6,000 to 12,000 children from Flint have been exposed to drinking water with high levels of lead, which could result to serious health problems. The percentage of Flint children with elevated blood-lead levels is estimated to have risen from about 2.5% in 2013 to as much as 5% in 2015 as well. An outbreak of Legionnaires’ Disease, a form of atypical pneumonia with no known vaccine, also resulted in 10 fatalities. The Legionnaires’ outbreak is linked to Flint’s contaminated water supply.
A comparison between Flint’s water coming from the Flint River and the Detroit River. [Credit: Occupy]
The Flint Water Crisis has resulted in several lawsuits being filed against government officials, many of which were accused of mismanaging the situation. Since the water crisis’ peak, however, the Michigan Department of Environmental Quality (MDEQ) has stated that the lead content of Flint’s water has fallen below the federal limit. As of April 2018, the MDEQ issued a statement assuring Flint’s residents that the city’s water quality “has been restored.” Regardless of this, however, many Flint residents remain skeptical that their water is now safe, especially considering that the replacement of the contaminated lead pipes is still ongoing. In this sense, Musk noted on Twitter that the planned “barnstorming” weekend in Flint would not only aim to give residents water filters for their homes; it would also attempt to fix residents’ perception of the city’s water supply.
You’re right on both counts. Most houses in Flint have safe water, but they’ve lost faith in govt test results. Some houses are still outliers. Will organize a weekend in Flint to add filters to those houses with issues & hopefully fix perception of those that are actually good.
— Elon Musk (@elonmusk) July 11, 2018
While Elon Musk’s recent philanthropic ventures are attracting more attention than usual, the SpaceX and Tesla CEO’s humanitarian efforts have actually been going on for some time. It should be noted that Tesla’s big battery in South Australia was started after Musk became aware of the power crisis in the region. After Hurricane Maria ravaged Puerto Rico, Musk also promptly sent a team to help the island nation get back on its feet. As of Musk’s latest update, he noted that there are currently 11,000 projects underway in Puerto Rico.
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Elon Musk
SpaceX’s next trillion dollar bet has nothing to do with rockets, Musk tells staff
Elon Musk told SpaceX staff AI revenue will soon dwarf rockets and Starlink combined entirely.
Elon Musk told SpaceX employees this week that artificial intelligence, not rockets, will soon carry the company’s revenue. In a roughly 29 minute internal address posted on SpaceX’s X account on Tuesday, Musk said AI revenue will pass every other line of business at SpaceX “probably in September” and pull further ahead by the fourth quarter.
The numbers he gave are specific. SpaceX currently runs 1.4 gigawatts of AI compute capacity. Musk wants that at 10 gigawatts by the end of 2027, a jump he tied directly to revenue: “if we bring 10GW of AI online by the end of next year, it will be $300 billion to $500 billion a year in revenue.” He called those “big numbers,” which undersells a projection larger than what most countries produce in a year.
We made rockets reusable and are rebuilding the internet in space. The next challenge: making life multiplanetary and understanding the true nature of the universe
Watch @ElonMusk deliver a company update to @SpaceX employees pic.twitter.com/5c8rxoCQfu
— SpaceX (@SpaceX) August 11, 2026
Musk went further on where AI fits into SpaceX’s future. “Probably in four or five years, AI will be 99% of the value of SpaceX,” he told staff, adding that digital intelligence would eventually run “a trillion times” ahead of biological intelligence as computing scales. He tied that growth to the company’s founding mission, telling employees “we must win on AI, because the future is overwhelmingly AI and robots,” with the payoff meant to help fund Starship and a Mars program that increasingly runs through Terafab, the joint Tesla, SpaceX and xAI chip plant.
Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry
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None of this is entirely new territory. SpaceX told investors much the same story during its first earnings call as a public company on August 4, where Musk moved the company’s $1 trillion revenue target up a year to 2030 and said Starlink could someday carry a majority of the world’s internet. What the all hands video adds is a hard deadline and a specific power figure Musk had not given publicly before, along with a franker pitch to his own workforce that AI, not launch cadence, is now the thing SpaceX is betting its future on.
The AI revenue itself is not coming from SpaceX training its own models. It is largely Starlink acting as the network layer for xAI’s workloads, plus SpaceX renting out compute capacity directly, the same approach behind the roughly $16 billion the company spent on AI infrastructure in a single quarter.
Musk closed the video with a pitch aimed at recruiting and retention rather than investors, telling employees that anyone who helps SpaceX win the AI race will eventually get the chance to go to the moon or Mars themselves. Whether SpaceX can turn 1.4 gigawatts into 10 in seventeen months is the more immediate question, and one that will show up in quarterly numbers well before anyone leaves Earth.
In a new note to investors on Tuesday, Morgan Stanley analyst Andrew Percoco said that Tesla has one big financial question to answer for investors regarding its Robotaxi rollout, Full Self-Driving software, and Optimus.
Percoco said in the note that, for the most part, investors are still very positive about the direction the company is headed. However, there are some things the firm would like to see, and they have to do with financials.
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Tesla bulls are more than convinced that the company’s Full Self-Driving software is proof it can develop physical AI. Financially, however, there are still some questions, especially on elevated spending, which CEO Elon Musk said would occur as the company works to roll out Robotaxi faster and continue developing its Optimus robot.
The latter two are where Tesla will have to prove progress to investors, as Percoco writes that both projects “will require clearer evidence that Robotaxi is scaling and more tangible Optimus proof points to support the ROI on elevated capex.”
Percoco said the second quarter earnings call did not change his long-term thesis of where Tesla is positioned in the AI race, which is out in front. However, there are concerns that weaker gross margins and higher R&D spend will stress financials, and that has “sharpened our (and investors’) focus on measurable progress across Robotaxi and Optimus.”
Additionally, Robotaxi still needs to be proven with more operation in existing cities while maintaining safety but improving how many rides it gives in any given time, he said. For Optimus, Percoco wrote that he is “still looking for evidence beyond commentary around SOP.”
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Morgan Stanley put Percoco in charge of covering Tesla after long-time analyst Adam Jonas transitioned to the automotive side.
Currently, Morgan Stanley has a $415 price target on Tesla and a ‘Hold’ rating on the stock. It is trading at around $330 at the time of publication, which was 2:30 P.M. on the East Coast.
SpaceX’s massive investment in AI will make it a big winner, Argus Research said after the company’s successful earnings call last week.
The firm also upgraded shares to a Buy from Hold and set a $160 price target.
SpaceX (NASDAQ: SPCX) is currently recovering from its heavy AI infrastructure investments, as it spent nearly $16 billion in Q2 alone. The company did this primarily by monetizing high-demand GPU compute capacity at a much faster pace than traditional data center economics would suggest.
Company CFO Bret Johnsen said that SpaceX would be able to pay back anything on new deployments within a year.
There are plenty of ways the company can do this:
Leasing excess compute capacity through contracts
SpaceX has already built Colossus and Colossus II, largely for its own model training. However, much of that capacity is already rented out to third parties. It already has major deals with Anthropic, Google, and Reflection AI. These partnerships are adding billions per month to SpaceX’s spreadsheet.
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High utilization driven by industry-wide scarcity
The demand for advanced AI training and inference capacity continues to exceed what is available for use. SpaceX can fill new racks quickly after they come online, so the capital deployed converts into revenue with minimal idle time.
Additionally, management and outside observers have described the new compute capital as behaving more like a cost-of-goods-sold than traditional multi-year capex, especially because of this rapid monetization pattern.
Capacity has already scaled from ~0.4 GW a year to 1.4 GW annually by the end of Q2. There are targets of more than 2 GW by year-end.
High incremental margins on the rental business once capacity is online
GPU cloud providers often operate at strong gross margins. SpaceX can monetize capacity that was already partially built or can be added efficiently. This means that incremental EBITDA margins on the rental revenue are usually high. This accelerates cash recovery relative to the gross capital outlay.
Parallel monetization of its own AI software and applications
Beyond pure infrastructure rental, SpaceX also generates revenue from Grok through subscriptions and usage, from X through ads, data, and other related services, enterprise APIs, and the planned integration of the Cursor coding tools acquisition.
These application layers ride on the same compute infrastructure and provide additional high-margin streams that could offset build-out costs. AI-segment revenue overall rose sharply to about $2.6 billion in Q2, according to Motley Fool. This was driven primarily by the infrastructure contracts, but the software side is also partially responsible.
Efficient, large-scale deployment and vertical integration advantages
SpaceX has emphasized the rapid construction of power and cooling infrastructure and favorable cost-per-megawatt economics relative to industry benchmarks in some disclosures.
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Combined with its ability to scale capacity aggressively and the fact that many contracts start generating revenue within months of capacity coming online, the effective payback compresses dramatically compared with more conventional multi-year data-center projects.
SpaceX’s dominant near-term recovery path will turn the AI clusters into a hyperscale-style compute rental business for other leading AI companies while still using a portion for internal models.
SpaceX’s next trillion dollar bet has nothing to do with rockets, Musk tells staff
Tesla has one big financial question to answer for investors: Morgan Stanley
