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Tesla co-founder unveils electric garbage truck
The global transition from combustion engine to all-electric vehicle continues to move into new sectors as Wrightspeed has just released its first fleet of range-extended electric refuse trucks. The powertrain represents a new era in vehicle propulsion, repowering a generation of lighter, quieter, and more efficient vehicle fleets for urban streets.
Wrightspeed’s commercial application of the range-extended, turbine-electric powertrain is the heavy-duty Class 8 Freightliner, which will be delivered to The Ratto Group, a Sonoma County solid waste collection and recycling business. The Class 8 Freightliner is the first of at least fifteen electric vehicles that will be integrated into the trash company’s fleet over the next year, according to Tim Dummer, Wrightspeed’s chief business officer. Dummer, an engineering and commercialization executive, was brought into Wrightspeed in October, 2016 as part of the company’s ramp-up of its Range-extended Electric Vehicle (REV) powertrain systems.
Called The Route™, Wrightspeed’s REV powertrain is optimized for the refuse industry and can be customized to fit a variety of today’s heavy-duty truck platforms, replacing both the engine and the transmission. Much of the growing demand for the award-winning The Route is due to Wrightspeed’s founder, Ian Wright, one of the original co-founders of Tesla Motors. After his departure from Tesla Motors in 2003, Wright had a vision that electric vehicles could deliver high-performance without compromising intrinsic efficiency. Using turbines and applying electric vehicle principles to urban, heavy-duty trucks, The Route powertrain was the result.
The Wrightspeed system can power a 66,000-pound GVW truck, delivering up to 24 miles on battery power before the range extender kicks in. After that, range is nearly unlimited as long as there is fuel for the turbine. With fuel efficiency the equivalent of up to 7 mpg in combined electricity-liquid fuel operation, the powertrain can slash annual fuel consumption by 70 percent or more compared with the average diesel refuse truck. CEO Lou Ratto says he expects a fuel savings of at least 50 percent.
Eventually, all of Ratto’s 130 residential trash and recycling trucks may be retrofitted with the turbine-electric powertrain. This is an ambitious undertaking, as a refuse truck’s demanding duty cycle drains an electric powertrain’s batteries quickly. Think start, then stop. Start, stop. Wrightspeed’s electric powertrain drives more low-end torque to the wheels than conventional diesel engines, with less fuel, emissions, and noise.
Wrightspeed, in a sense, is recycling Ratto’s trash collection trucks. The Wrightspeed/ Ratto contract is thought to be in the range of $3 million to $5 million.
A new refuse truck that meets all California air quality standards costs more than $500,000, so Wrightspeed’s retrofit of Ratto’s existing trucks makes the system more cost-effective, Van Amburg relates. Sonoma County officials like the trash fleet electrification program because they see it as a means of improving local air quality, says Efren Carrillo, chairman of the Sonoma County Board of Supervisors. Ratto concurs. “Here in Sonoma County there is a lot of environmental consciousness, and we are always looking for ways to be cleaner, environmentally friendly, and help the bottom line. And the idea that [by electrifying the trucks] we can do this and get off the air quality rollercoaster and stop battling to meet California emissions requirements— that makes it all worthwhile.”
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Wrightspeed featured its powertrain technology alongside Mack Trucks at Waste Expo 2016 in Las Vegas and signed a $30+ million agreement with NZ Bus, symbolizing multinational and multimodal demand for Wrightspeed’s powertrain technology. In June, the company was named a Technology Pioneer by the World Economic Forum (WEF), and CEO Wright was an invited presenter to the International Business Council of the World Economic Forum. He will be a keynote speaker at the upcoming SAE 2016 Range Extenders for Electric Vehicles Symposium in Knoxville, 2-3 November, 2016.
SpaceX announced today that it commenced its first-ever public bond offering, marking a significant step in the newly public company’s capital markets strategy.
The company announced an offering of senior unsecured notes expected to raise at least $20 billion.
The move comes just a short time after SpaceX completed one of the largest initial public offerings in history. In mid-June, the company priced shares at $135 and raised more than $85 billion, propelling founder Elon Musk’s net worth past the trillion-dollar mark and giving the firm substantial liquidity.
🚨 SpaceX has announced its inaugural offering of senior unsecured notes.
The net proceeds will be used to repay outstanding loans under its bridge loan facility in full.
This inaugural debt offering represents a financing milestone for SpaceX, which previously depended… pic.twitter.com/pcOZuVbTRv
— TESLARATI (@Teslarati) June 22, 2026
According to the company’s SEC filing, the net proceeds from the notes will be used primarily to repay in full the outstanding borrowings under its existing bridge loan facility, cover related fees and expenses, and fund general corporate purposes. The offering is being conducted under Rule 144A, as well as Regulation S, targeting qualified institutional buyers and non-U.S. investors. Notes will be unsecured obligations ranking equally with other unsubordinated debt.
The $20 billion bridge loan was used to refinance approximately $17.5 billion in higher-cost “junk” debt tied to X and xAI. SpaceX had merged with xAI in February 2026 in an all-stock deal. The bridge facility, which matures in September 2027, had represented the bulk of SpaceX’s long-term debt.
SpaceX officially acquires xAI, merging rockets with AI expertise
In connection with the bond launch, SpaceX disclosed it held approximately $100.8 billion in cash and cash equivalents as of June 19. Investor calls began on the announcement date, with pricing and launch expected shortly thereafter. Rating agencies have assigned investment-grade ratings to the proposed bonds, reflecting confidence in SpaceX’s dominant position in commercial launches and the growth trajectory of its Starlink internet offering.
The debt raise also allows SpaceX to optimize its balance sheet by replacing short-term, higher-cost bridge financing with longer-date, lower-cost fixed-income securities. This provides greater financial flexibility to support capital-intensive initiatives, including the development of Starship, the expansion of the Starlink constellation, and the integration of AI capabilities following the xAI combination.
SpaceX shares (NASDAQ: SPCX) fell sharply on the news, dropping over 16 percent overall on the market on Monday. The stock had surged initially after debuting but pulled back amid profit-taking and broader market dynamics.
Overall, the bond offering underscores SpaceX’s transition to a mature public company with access to diverse funding sources. It positions the firm to pursue its long-term vision of multiplanetary expansion and AI infrastructure, while maintaining a disciplined approach to its capital structure in a high-growth but capital-heavy industry.
SpaceX confirmed today that it has officially signed its third massive compute deal, providing compute at its Colossus data center in Southaven, Tennessee.
Reflection AI will gain immediate access to NVIDIA GB300 chips at SpaceX’s Colossus 2 data center. In return, Reflection will pay SpaceX $150 million per month starting on July 1, with total payments reaching approximately $6.3 billion if the contract runs through its duration, which is until 2029. Either party can terminate the agreement with 90 days’ notice after the initial three-month period.
CNBC first reported the deal.
🚨 SpaceXAI has agreed to a new compute deal with Reflection AI.
Reflection gets access to NIVIDIA GB300s, and will pay $150M per month to SpaceXAI for the compute. pic.twitter.com/bNPare8U5u
— TESLARATI (@Teslarati) June 22, 2026
This latest partnership highlights SpaceX’s strategy of commercializing its massive Colossus supercomputing infrastructure, originally developed to power Elon Musk’s Grok AI models. The company has rapidly expanded its customer base in the AI sector following its February 2026 merger with xAI, a transaction that valued the combined entity at $1.25 trillion.
SpaceX has previously signed significant compute deals with other major players.
It granted Anthropic exclusive access to the full capacity of its Colossus 1 data center, which exceeds 300 megawatts and includes over 220,000 NVIDIA GPUs. Details from SpaceX’s IPO filings indicate Anthropic will pay $1.25 billion per month through May 2029, potentially generating around $45 billion over the term of the deal.
Additionally, Google agreed to pay SpaceX $920 million per month for compute capacity from October 2026 through June 2029. This 32-month period will provide Google access to roughly 110,000 NVIDIA GPUs, along with supporting processors and memory. Capacity ramps up through September at a reduced fee, with termination options after the first year.
SpaceXA also established arrangements for computing power with Cursor, an AI coding startup. SpaceX acquired them in a $60 billion all-stock deal.
These arrangements position SpaceX’s collective position as an AI infrastructure powerhouse with high-margin revenue potential. The Google deal alone could generate nearly $29.5 billion over its term, while the Reflection contract adds another $6.3 billion.
Combined with the Anthropic arrangement, SpaceX stands to realize tens of billions in revenue from compute leasing in the coming years, which diversifies beyond SpaceX’s traditional rocket launches and Starlink operation.
The deals underscore growing demand for advanced AI training and inference capacity amid chip shortages and surging model development needs. Reflection, valued at $25 billion and focused on “American open intelligence” with government and national security ties, cited recent restrictions on closed models as validation for open-source approaches.
For SpaceX, the partnerships transform capital-intensive data centers into flexible revenue sources while supporting its broader AI ambitions after the company has gone public.
It is safe to say SpaceX won’t be going for electric rockets anytime soon.
In a characteristically blunt reply on X, SpaceX frontman Elon Musk stated, “Unfortunately, electric rockets are impossible,” following reports that MSCI had assigned SpaceX its lowest possible ESG rating of CCC.
The assessment, issued just this past week, coinciding closely with SpaceX’s public market debut, placed the company on par with nations like Russia in sustainability scoring and cited significant risks in environmental, social, and governance areas.
MSCI flagged SpaceX’s exposure to rocket emissions and other operational impacts, alongside governance concerns such as concentrated control by Musk and limited shareholder protections. Musk’s terse comment directly addressed the environmental pillar, underscoring a core physical constraint that ESG frameworks often overlook when evaluating high-thrust industries.
Unfortunately, electric rockets are impossible
— Elon Musk (@elonmusk) June 21, 2026
Electric propulsion systems do exist and are widely used in space. Ion thrusters and Hall-effect thrusters accelerate ionized propellant, typically xenon or krypton, using electric fields, achieving very high specific impulse, often exceeding 3,000 seconds compared to roughly 300–450 seconds for chemical rockets.
This efficiency makes them ideal for satellite station-keeping, orbit raising, and deep-space missions where low thrust over long durations is sufficient. SpaceX’s own Starlink satellites employ electric propulsion for these purposes.
However, launching from Earth’s surface demands something entirely different: enormous thrust delivered rapidly to overcome gravity and atmospheric drag. A typical orbital-class booster must generate thrust far exceeding its weight, often in the millions of Newtons within seconds.
Chemical rockets achieve this through exothermic combustion of dense propellants, producing high-mass-flow, high-velocity exhaust. Electric systems, by contrast, expel very small amounts of mass at extremely high speeds. Generating equivalent thrust would require impractical onboard power levels, massive energy storage or generation systems, and prohibitive added mass, rendering the approach infeasible with current or near-term technology.
Musk has previously expressed a similar sentiment, noting a desire for electric orbital rockets while acknowledging the inescapable requirements of Newton’s third law and energy delivery. The distinction is clear: electric propulsion excels once a vehicle is already in space; it cannot replace the high-thrust chemical phase required to reach orbit from the ground.
The episode illustrates broader critiques of ESG ratings. Proponents argue they incentivize better risk management and long-term sustainability. Detractors, including Musk—who has previously called ESG a “scam”—contend that such metrics can penalize essential activities when no practical alternative exists, potentially discouraging innovation in sectors like space access.
Elon Musk dubs the S&P 500 ESG as “outrageous scam” after Tesla gets booted from index
SpaceX has sought to mitigate launch-related impacts through reusability: Falcon 9 boosters have flown more than 30 times in some cases, dramatically lowering the manufacturing and emissions burden per kilogram delivered to orbit. Starship’s design further emphasizes rapid reusability and methane propellant, which can theoretically be produced via sustainable pathways.
Ultimately, Musk’s remark serves as a reminder that certain engineering realities persist regardless of scoring systems. As humanity expands its presence in space for communications, science, and exploration, balancing genuine environmental progress with technological necessity remains a central challenge.
ESG frameworks may evolve, but the fundamental limits of electric launch propulsion are unlikely to change soon.
SpaceX makes $20 billion move to optimize its balance sheet
SpaceX confirms third massive compute deal at Colossus data center
