News
Tesla, SpaceX, Elon Musk ventures cleared by SEC for private fundraising after tweet controversy
Tesla, SpaceX, The Boring Company (TBC), and Neuralink have all been granted waivers allowing them to continue raising capital by privately selling restricted securities (typically private equity or debt), heading off potential barriers that would increase the difficulty of raising capital through the sale of securities.
Cued by the commission’s settled suit over CEO Elon Musk’s improper and misleading dissemination of information material to Tesla shareholders, the United States Securities and Exchange Commission (SEC) has granted investment disqualification waivers – specifically “waivers of disqualification under Rule 506 of Regulation D” – to each of the four major companies owned by Elon Musk.
-
- Building giant factories like Gigafactory 2 demands major capital investments that often require private equity sales. (Tesla)
-
- Rockets are perhaps even more capital intensive. (SpaceX)
Losing the ability to raise funds in this manner would make it much harder for companies like Tesla and SpaceX to raise the money frequently needed for expansions and major R&D projects, described in the waiver requests as “extremely capital intensive.” However, the bulk of the arguments provided by each company’s legal representatives can be largely ignored. Arguing to the contrary – i.e. failing to make a strong case that the given company may need private equity investment – could close critical doors that each company may not need right this moment but would like to preserve as an option.
Still, each waiver request offers a slight glimpse into the inner-workings of SpaceX, TBC, and Neuralink, typically hidden from the public eye as privately held entities.
Tesla
Tesla, being a publicly-traded company, offered few secrets in its waiver request. However, it did publicize the best overview yet of what exactly the SEC’s demand for the regulation of Elon Musk’s Tesla-material communications might translate to inside the company. According to Tesla’s legal representatives, the company is arranging the creation of “new, permanent committee…of independent directors only [that] will provide an additional check on the procedures and processes for overseeing Mr. Musk’s Tesla-related public statements.” Tesla will also reportedly task “another experienced securities lawyer…to undertake an enhanced review of communications made through Twitter and other social media by the [sic] Tesla’s senior officers.”
The hope is that this new arrangement will prevent a recurrence of the misconduct that led to the SEC’s suit and the subsequent settlement. More likely, however, is that the threat of the modification or withdrawal of these four waivers will prevent Musk from stepping outside the bounds of the SEC’s binding settlement agreement, as doing so could truly harm the potential of all four companies.
SpaceX
In SpaceX’s waiver request, the company’s legal representatives confirmed that it has raised “more than $2 billion in [eleven separate] securities offerings” that fell under the purview of activities SpaceX would be disqualified from pursuing without a waiver from the SEC. The total value of investments on the public record currently hovers around $2.27 billion, including a partially-finished Series I round that has likely raised that to value to ~$2.5 billion since it surfaced in April 2018.
“The design and manufacture of launch vehicles and spacecraft is extremely capital intensive. SpaceX needs sufficient [and may need to raise additional] capital to fund its ongoing operations and future expansions, for example: development of its BFR launch vehicle and Crew Dragon spacecraft, continuing research and development projects, and making investments in tooling and manufacturing”
The Boring Company & Neuralink
As for TBC and Neuralink, the waivers didn’t offer anything unexpected, although they did provide great, brief overviews of what exactly the two companies are currently working towards. Although it was announced in late 2017 that Musk would sell stock to fund initial operations at TBC and Neuralink, both companies’ legal representatives confirmed the exact amount of funding raised by “Musk and various other third-party investors”: $112.5 million and $100.2 million, respectively.
Both expressly confirmed no intentions to pursue initial public offerings (IPOs) anytime soon, although Neuralink’s waiver indicated that it may invest in or acquire other companies pursuing brain-computer interfaces.
-
- Musk believes that TBC will finish its first test-tunnel in roughly six weeks, in early December. (TBC)
-
- The Boring Company’s next-gen tunnel-boring machine seen in its early stages, October 5th. [Credit: Tom Cross/Teslarati]
-
- While we have no clue what Neuralink’s stealthed work has produced, it’s perhaps the most long-term venture Musk has started. The path to market for medical devices is very long and even more expensive.
The Boring Company
“The Boring Company (TBC) is a fast-growing infrastructure and transportation company focused on developing cost effective, and fast tunneling technology, along with electric mass transportation systems to alleviate the massive problem of traffic and congestion within cities. The research, development, design, manufacture, testing, and construction of tunnels and mass transit systems is a capital intensive business. TBC needs sufficient capital to fund its ongoing operations and future expansions, for example: continued development and improvement of Tunnel Boring Machines (“TBMs”) and electric skates, the construction of mass transit tunnels including publicly announced projects in Chicago, Los Angeles, and Washington D.C..”
Neuralink
“Neuralink is a fast-growing bio-technology and medical device company focused on developing high bandwidth, long term, brain computer interfaces (“BCI”). The research, development, design, manufacture, testing, and certification of medical devices and BCI’s is purely capital intensive business requiting deep investment for years prior to any initial revenue. Neuralink needs sufficient capital to fund its ongoing operations and eventually bringing products to marked, for example: continued development of BCI’s, continued testing of implantable devices, financing of multi-year FDA trials and certifications, and the construction of FDA-approved manufacturing facilities. Neuralink will need to raise capital for these operations and expansions, and given the development stage of the company, it is most likely that such financing will be through private securities offerings in reliance on Rule 506 of Regulation D.”
A California radiologist who drove his Tesla Model Y off a 250-foot cliff in an attempt to kill his family has had his charges dismissed after doctors say he is “doing well” in a mental health program.
Dharmesh Patel was charged with three counts of attempted murder in connection with a January 2023 crash where he drove his Tesla off a cliff, injuring his wife and two children, aged 7 and 4 at the time.
Patel drove the Tesla off Devil’s Slide in California, an area that is extremely rough to the point that investigators and rescuers expected the worst when arriving at the scene for the first time. Patel supposedly had schizoaffective disorder, according to Deputy District Attorney Dominique Davis.
Shockingly, Patel’s wife, who was in the vehicle, testified that she did not want her husband to be prosecuted, noting that their children missed their father and they wanted him to come back home. Patel’s attorney argued, “not everyone who commits a crime is a criminal.”
Doctor who took Tesla off cliff gets support from unlikely person
A three-day trial in Mental Health Diversion Court ruled in Patel’s favor, which kept him out of jail and instead on house arrest. He was admitted to a Mental Health Diversion Program, which he successfully completed, the Associated Press reported. San Mateo County District Attorney Steve Wagstaffe said the judge was “required by law” to dismiss the charges:
“If the person who’s given mental health diversion follows the treatment plan, there’s nothing that can be done, and at the end of the two years he gets it wiped out of his record.”
Wagstaffe said he has argued, along with other DAs in California, to have attempted murder removed from the list of charges eligible to be dismissed due to mental health diversion programs.
Patel had the charges officially dismissed on Monday; his wife waited for him as he left court and they departed the building together, according to Mercury News. Patel surrendered his California medical license in December.
The crash has been one of the best examples of Tesla’s incredible engineering, which has saved four lives in this particular instance. The car was totalled but kept the four human beings alive and safe, which is something that many referred to as “an absolute miracle.”
A common misconception of anti-EV proponents is that the batteries used in the vehicles are detrimental to the environment and that they cause more waste than they are worth. But a look at Tesla’s battery recycling efforts last year shows the company is doing more than ever to recover materials and give portions of the cells a second life.
Tesla reported a significant milestone in its sustainability efforts last year, with battery recycling volumes rising 20% compared to 2024. According to the company’s 2025 Impact Report, Tesla recycled over 14,000 metric tons of battery material through a combination of in-house processing at its Gigafactories and collaborations with third-party recycling partners.
Tesla: “In 2025, we recycled over 14,000 metric tons of battery material through a combination of in-house processing and through our network of recycling partners.”
That’s equivalent to 46,000 long-range battery packs, a +20% increase from 2024. pic.twitter.com/TC3Nz7Kaqf
— Sawyer Merritt (@SawyerMerritt) July 7, 2026
This amount of recovered material is equivalent to the resources needed to produce approximately 46,000 long-range battery packs. The increase reflects growing operational scale as Tesla’s global vehicle fleet expands and more batteries reach end-of-life or manufacturing scrap becomes available for processing.
Tesla and Battery Recycling
Battery recycling forms a core part of Tesla’s circular economy strategy. The company designs its batteries for longevity, often exceeding 200,000 miles of driving, and prioritizes repairs, remanufacturing, and second-life applications before full recycling.
Once packs are decommissioned, Tesla ensures 100% are recycled with no materials sent to landfills. This approach recovers critical metals including lithium, nickel, cobalt, and copper, which can be refined and reused in new battery production.
Tesla has advanced hydrometallurgical recycling processes capable of achieving recovery rates up to 98% for key battery metals. These methods are more efficient and environmentally friendly than traditional pyrometallurgical techniques, reducing energy use and enabling higher-purity materials suitable for direct reintegration into battery manufacturing.
Tesla co-founder JB Straubel confirms Redwood’s battery recycling operations are already profitable
In-house capabilities are supplemented by a network of specialized partners, creating a robust system that handles both production scrap and end-of-life packs.
The environmental and economic benefits are substantial. Recycling reduces reliance on virgin mining, lowers the carbon footprint associated with raw material extraction and processing, and helps stabilize supply chains for critical minerals amid rising global EV demand. As millions of Tesla vehicles age, the volume of recyclable material is expected to grow significantly in the coming years.
This 20% year-over-year growth demonstrates the effectiveness of Tesla’s investments in recycling infrastructure and technology. It positions the company as a leader in addressing one of the automotive industry’s major sustainability challenges. Continued innovation in battery design for easier disassembly and higher recyclability will further enhance these efforts.
Overall, Tesla’s progress in 2025 highlights how scaling recycling operations supports both environmental goals and long-term business resilience in the transition to electric mobility. As the EV market matures, such closed-loop systems will become increasingly vital for sustainable growth.
Tesla has spent years trying to engineer its way out of the automotive paint shop, one of the most expensive, space-consuming, and environmentally costly steps in vehicle manufacturing. With the Cybercab, Tesla confirmed on X this week that a new reaction injection molding process will embed color directly into the panel itself during production.
“Our new reaction injection molding (RIM) process shrinks Cybercab paint cycles from hours to minutes. This cuts those parts’ manufacturing and supply chain emissions by 35% and eliminating 100% of paint volatile organic compounds (VOCs) emitted in traditional paint methods.” noted Tesla.
While the RIM process isn’t necessarily new and has existed since the 1960s, what makes Tesla’s application notable is how it is being used specifically for exterior body panels that traditionally required a separate paint process after forming.
Tesla’s RIM approach integrates the color directly into the panel material during the molding process itself. The pigment is part of the polymer mix injected into the mold, meaning the panel comes out of the mold already colored, with no separate paint application required. The clear coat or protective layer can be applied at the mold stage or through a much faster post-process than traditional multi-stage painting. Tesla claims this compresses what was a multi-hour paint cycle into minutes per panel.
Tesla’s obsession with killing the paint shop is one of the most consistent threads running through the company’s manufacturing philosophy going back years. As far back as 2018, Musk was trimming paint color options to simplify production, tweeting at the time: “Moving 2 of 7 Tesla colors off menu on Wednesday to simplify manufacturing.” Two years later, in a 2020 Automotive News interview, Musk laid out his broader vision, saying he believed Tesla factories could one day be 1,000 times more efficient than conventional plants, and pointing to the paint shop as one of the biggest sources of waste, cost, and complexity. The Cybertruck was the most extreme expression of that thinking. Tesla chose an unpainted stainless steel exterior partly because it would eliminate the need for a $200 million paint facility at Gigafactory Texas. The stainless approach proved harder and more expensive than anticipated, but the underlying ambition never changed. The Cybercab is what happens when that same ambition meets a manufacturing process that delivers on it.
Radiologist who drove Tesla off cliff has attempted murder charges dismissed
Tesla battery recycling efforts increased 20 percent last year
