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Why Musk is supporting former Exxon Mobil CEO for Secretary of State
Elon Musk shocked social media when he tweeted an endorsement of Rex Tillerson as the next US Secretary of State on Tuesday. Musk has a few good things to say about Donald Trump leading up to his Presidency and Trump’s choice of the former CEO of Exxon Mobil seems to be a slap in the face to anybody who is concerned about global warming and the role fossil fuels have played in it.
Exxon Mobil is currently being investigated by the attorneys general of the New York and Massachusetts. Both contend the company knew of the harm that burning fossil fuels could do to the environment 40 years ago but elected to spend billions funding special interest groups to oppose the climate change message being put forth by James Hansen, The Union of Concerned Scientists, and others.
Weaning the world off fossil fuels is one of the central themes of Elon Musk’s plan to build compelling electric cars and promote solar power. What could he possibly find appealing about the CEO of the largest oil company in the world?
Yesterday, The Economist endorsed Tillerson and Musk tweeted shortly afterwards that he agreed with The Economist.
This may sound surprising coming from me, but I agree with The Economist. Rex Tillerson has the potential to be an excellent Sec of State.
— Elon Musk (@elonmusk) January 24, 2017
Musk added, “Rex is an exceptionally competent executive, understands geopolitics and knows how to win for his team. His team is now the USA. I share The Economist’s opinion that he should be given the benefit of the doubt unless his actions prove otherwise.
Has Elon deserted his loyal fans who tend to be rather more ecologically aware than the norm? Apparently not. Later in the day, he revealed the reason why he supports Tillerson for Secretary of State.
Rex Tillerson supports a carbon tax. This is what is really needed to move the needle. https://t.co/6ne01TOzs1
— Elon Musk (@elonmusk) January 25, 2017
Musk is betting that Tillerson will be able to influence Donald Trump to accept a carbon tax, something Musk has been advocating for since he first joined Tesla Motors. It is a way to eliminate what economists refer to as an “untaxed externality,” something that is a cost of doing business that is not incorporated into the price of finished goods.
Musk delicately refers to the fact that fossil fuel companies largely avoid paying the environmental and societal costs of their activities as “the turd in the punchbowl.” During the COP21 Paris climate summit, he made a compelling case for a carbon tax to a distinguished audience at the Sorbonne. In Tillerson, he seems to believe he has an important ally.
Musk has also been present at a number of meetings with Donald Trump, leading some to question whether his apparent support for the new President could alienate some of Musk’s traditional supporters. Until now, Musk and Tesla have been careful not to become embroiled in the divisive political storm that is roiling America.
Treading carefully between the needs of his businesses, the needs of his customers, and the policies of the new government may be one of the toughest challenges Musk has ever faced. Uber, for instance, has suffered a backlash from people incensed that CEO Travis Kalanik has accepted an appointment to one of Trump’s policy forums for business leaders. Musk is also a member of the same forum, but so far there has been no political backlash against Musk and Tesla.
Tesla is doing what Trump wants other car companies to do — build more American factories that employ American workers. But SpaceX is dependent on NASA for a significant portion of its future income. Of all Musk’s business ventures, it can least afford to alienate the current occupant of the Oval Office.
Musk may have made a carefully calibrated political calculation with regard to his working arrangements with the administration, but his support for and trust in Rex Tillerson seems to be grounded in the belief that a carbon tax is vital step to the fight to limit the damage from the consumption of fossil fuels. Unless and until he does something to break that trust, Tillerson and Musk will remain what Washington watchers for decades have called “strange bedfellows.”
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Tesla trims Model Y offerings as All-Wheel-Drive gets the axe
Tesla has trimmed its Model Y offerings as its Standard All-Wheel-Drive configuration has been removed from the online configurator after roughly nine months on sale. The move follows the removal of the Cybertruck, as its trims have also been minimized as that vehicle heads for total discontinuation at the end of Summer 2027.
Launched in February 2026 as a mid-tier dual-motor option between the Rear-Wheel-Drive model and the Premium trims, the Standard All-Wheel-Drive Model Y offered 294 miles of range and a 4.6-second 0-60 mph time in a stripped-down package.
🚨 Tesla has pulled the $41,990 Model Y AWD from its U.S. configurator after nine months on sale.
The cheapest AWD Model Y you can order is now the $49,990 Premium AWD, with Premium deliveries quoted for Jan–Mar 2027.
The $39,990 RWD stays, and AWD units remain in inventory. https://t.co/uROJp2lVpx
— TESLARATI (@Teslarati) November 13, 2026
With it gone, the cheapest new AWD Model Y buyers can configure is now the Premium AWD at $49,990, with estimated deliveries pushed into January–March 2027. The $39,990 rear-wheel-drive Model Y remains available for custom orders, and some AWD units are still listed in inventory.
The move arrives days after Tesla sharply narrowed its Cybertruck lineup. New orders for the Dual Motor AWD and Premium AWD versions have been disabled, leaving only the high-performance Cyberbeast—priced around $109,990 before fees—as the sole configurable option.
Elon Musk has stated that Cybertruck production at Gigafactory Texas will wind down around the middle to late summer of 2027 to free manufacturing space for greater Cybercab output. Tesla has raised prices on remaining trims and is prioritizing higher-margin builds while working through an existing order backlog that exceeds what the line can complete before conversion.
These parallel decisions reflect a broader effort to simplify Tesla’s retail customer lineup. Lower-volume or lower-margin variants are being phased out or deprioritized in favor of core, higher-spec models that generate stronger profitability and clearer production planning.
For the Model Y, this concentrates volume on the remaining RWD and Premium configurations while Premium deliveries already stretch into 2027. For the Cybertruck, it accelerates the transition away from a stainless-steel pickup that underperformed relative to initial volume expectations.
Tesla Model Y Standard Full Review: Is it worth the lower price?
The freed capacity and reduced complexity directly support Cybercab scaling. Tesla began pilot Cybercab production at Giga Texas in early 2026, launched paid autonomous rides in Austin in September, and is preparing for substantial volume growth.
By streamlining the existing vehicle portfolio, the company is reallocating factory space, engineering attention, and supply-chain resources toward its purpose-built Robotaxi, which lacks a steering wheel or pedals and is designed exclusively for unsupervised autonomy.
The result is a leaner retail lineup today and a clearer path to high-volume Cybercab deployment tomorrow.
Elon Musk
SpaceX Starship is going for a catch that could change spaceflight forever
SpaceX will try to catch both Starship stages today, a first for any orbital rocket.
SpaceX is set to launch Starship Flight 15 from Starbase on Friday afternoon, and if both stages make it back to the tower, the mission will go down as the first time an orbital rocket has ever been fully recovered. The 75 minute launch window opens at 4:45 p.m. CT from Pad 2, a day after SpaceX rolled Ship 42 out to the pad and shared photos of the move on X.
The first catch comes quickly. About six and a half minutes after liftoff, Booster 22 is scheduled to fly back to Starbase and settle into the launch tower’s chopstick arms, the first catch attempt for SpaceX’s V3 Super Heavy. SpaceX has caught the booster three times before most recently in March 2025.
Ship 42 moves to the Starbase pad ahead of launch https://t.co/pMUFTHneJQ — SpaceX (@SpaceX) November 13, 2026
The second catch is the one that has never been done. Ship 42 will climb to an orbit about 275 kilometers up, deploy 26 Starlink V3 satellites and complete about 14 orbits. Three of those satellites carry cameras to inspect the ship’s heat shield before it commits to coming home. If its reentry, landing burn and tower approach systems pass their checks, the ship will fire its engines to leave orbit, fall through the atmosphere in its belly flop position, flip vertical and drop into the tower about 22 and a half hours after launch, on Saturday afternoon. SpaceX gave a preview of that maneuver in an animation during its third quarter earnings webcast.
Elon Musk described a successful double catch on that call as “the first time that an orbital launch vehicle has been fully recovered” and a “profound technology milestone,” putting the odds of catching the ship at “more likely than not.” SpaceX has called it a potential “breakthrough moment in making Starship a reliable, rapidly reusable rocket,”
Reuse is where the economics change. Falcon 9 lands its boosters routinely, but its upper stage is thrown away on every flight. Starship is designed so both stages can be refueled and flown again, which is key to cutting launch costs. That matters for Starlink, where each V3 satellite is expected to carry roughly 10 times the download capacity of the V2 Mini satellites flying today, and for Starmind, SpaceX’s planned constellation of AI compute satellites.
It matters for NASA too. Starship is the lunar lander for the Artemis program, and reaching the Moon requires refilling a ship in orbit using several tanker flights. That plan only works if Starships can fly again and again. Musk has said he expects Starship to reach a weekly launch cadence in the first half of 2027.
Investors are paying attention. Morgan Stanley’s Adam Jonas wrote this week that a catch of both stages would likely be “a material positive” for SpaceX stock.
The last Starship flight in September reached orbit for the first time but ended after about three hours with a splashdown in the Pacific, short of its planned 10 hours, after some engines shut down. Since then, Booster 22 has completed a full 33 engine static fire and Ship 42 a six engine firing, as Teslarati previously reported. As of Friday morning, SpaceX was still waiting on the FAA to approve a license change covering the ship’s return over land.
Elon Musk
Tesla and SpaceX merger talks hit a new stage, and one hurdle remains
Tesla and SpaceX merger talks are reportedly advancing, and a deal could arrive by December.
Tesla and SpaceX are moving closer to a combination, with a deal announcement possible as soon as December, Bloomberg reported on Thursday, citing people familiar with the matter. The companies have also discussed a scenario in which the announcement slips into early 2027.
Boards and advisers on both sides are now working through the terms of the deal and the governance structure of the combined company, according to the report. One open item is how many SpaceX shares Tesla investors would receive. Bloomberg had previously reported that the two companies were aiming to announce a deal in the first half of next year and close it before the end of President Donald Trump’s term, so a December announcement would pull that schedule forward by months.
Tesla shares rose as much as 1.9% to $398.35 after the report, while SpaceX gained 0.6% to $140.63. SpaceX carries a market value of about $1.9 trillion following its June IPO, and Tesla is valued at about $1.55 trillion, which would make a combination the largest corporate deal on record. Neither company responded to requests for comment.
The talks became official on October 20, when Elon Musk said on SpaceX’s third quarter earnings call that both companies had formed special committees of independent directors to study a merger, as Teslarati reported. Musk said he could not take part because he is “a conflicted party” and called the process “an odd kabuki dance.” He also noted that Tesla would need approval from 50 percent of all outstanding shares, a bar the company missed in 2025 when a board declassification proposal won support from only 39.4 percent.
China remains the biggest structural problem. Bloomberg’s sources said the companies still need to work out how to isolate Tesla’s large and profitable manufacturing business in China from SpaceX’s U.S. government and defense contracts. JPMorgan analyst Rajat Gupta described those two factors last month as “key dynamics that are at odds with each other” for regulatory and shareholder approval. Musk has repeatedly said Tesla has no plans to separate its China business, a position he restated in August after ARK Invest predicted a merger announcement before the end of the year.
Washington adds another layer. Democrats took control of Congress in this month’s midterms and have pledged to investigate Musk’s business and political activities, which could bring added scrutiny to a deal involving one of the Pentagon’s most important launch and satellite contractors.
The report also lands three weeks before Tesla’s December 3 annual meeting at Giga Texas. That ballot has only three items, led by the re-election of Musk, board chair Robyn Denholm and JB Straubel, and includes no merger proposal. Any deal announced in December would likely require a separate special meeting for Tesla shareholders to vote on it.
The two companies already share a growing list of projects, including the Terafab semiconductor plant in Texas. Tesla’s next generation Roadster, which uses cold gas thrusters built on SpaceX hardware, turned up on display at SpaceX headquarters last month and has become one of the clearest public examples of that overlap.