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Tesla’s Elon Musk strikes diplomatic note on climate change, oil and gas in podcast interview
Tesla CEO Elon Musk has been outspoken on many issues over the years, and as the leader of the most successful electric car company in the world, it’s not surprising when his comments are aimed at skeptics of climate change and promoters of oil and gas industry expansions. That said, Musk is also quite aware of the nuances involved with industry that make things less binary than green energy advocates often frame them. In a recent podcast hosted by Kara Swisher called Sway, the serial entrepreneur took a more diplomatic tone than usual when discussing our planet’s future, fossil fuels, and the people involved in their production.
Swisher’s interview style is straightforward, and her opinions on matters under discussion are barely veiled. After a rocky start that prompted Musk to become a bit combative in his replies (“Sell your stock, I don’t care. What’s the point of this podcast?”), their discussion made its way to the emerging climate-focused market and steps being taken by governments both in the US and around the world. “I think these are all indications that the end of fossil fuel vehicle is nigh,” Musk replied in reference to his thoughts on California Governor Gavin Newsom’s latest executive order banning the sale of new fossil fuel vehicles by 2035.
Building further on that topic, the Tesla CEO also offered less-dire thoughts about where Earth is headed if the transition to sustainability is hindered. “I do not think this is actually the end of the world. I just think things get riskier,” Musk said after referencing the unprecedented growth of CO2 ppm currently in the atmosphere. “We need to think in terms that are not super binary… The actions that we take change the probability that the future will be good.” While his comments were somewhat positive, he still kept a realistic focus. “If you think of how civilizations have developed, we’ve put ourselves right on the edge of the water. If that water level rises even a little bit, you’ve got major problems.”
In yet another unusual diplomatic stroke, Musk also had sympathetic words for people who’ve worked in the oil and gas industry as a career. “Honestly, I feel a bit bad about hating on people in the oil and gas industry,” he admitted. “For a lot of people in the oil and gas industry, especially that are on the older side, they kind of built their companies and did their work before it was clear this was a serious issue… And now…people are kind of making them out to be villains when for the longest time they were just working hard to support the economy and didn’t really know it was gonna be all that bad.”
Swisher pointed out that it was odd for Musk to speak on behalf of the industry he’s been so tough on in the past, but Musk reminded her that his foray into electric cars was more about running out of oil vs. the dangers of burning it and releasing the CO2 into the atmosphere. In his early years, the Tesla chief wasn’t aware of the environmental impact of fossil fuels as much as understanding that running out of them would bring the collapse of civilization.
Musk’s diplomacy then made it all the way to the White House. “Arguably, he’s been as supportive as he can be on the electric car front, recognizing that a massive part of the Republican support is coming from oil and gas,” he noted in reference to US President Donald Trump after Swisher inquired about his political positions in the upcoming elections. After a further challenge from the podcast host over policies taken up by political parties, the CEO refrained from taking a hard-and-fast position. “If you’ve got a two-party system, then the problematic issues are gonna kind of fall somewhat randomly into one party or the other. Like, it’s not clear to me that there’s a cohesive set of reasoning why these things are in one party vs. another. They seem semi-random.”
The Sway episode touched on nearly every topic Musk is involved in – artificial intelligence, Neuralink, and SpaceX included. There was one other issue, though, that he had not-so-diplomatic words to offer. “The press coverage of [Battery Day] was sad. Most of the press takeaway was a sad reflection of their understanding, really,” he lamented. “I’m also not trying to convince people that much. The results will speak for themselves… We have had cars driving with those cells since May.”
You can listen to the full Sway podcast interview with Swisher and Musk here.
Tesla’s dreams of operating a fully autonomous ride-hailing platform just took a massive step toward reality, as two separate events have indicated the company is perhaps closer than ever to achieving self-driving as a product.
On Thursday, Tesla was granted authorization by the State of Texas to operate driverless vehicles in a commercial manner. On May 28, Senate Bill 2807, passed by the 89th Texas Legislature, took effect after being passed back on September 1, 2025.
The bill establishes a statewide regulatory framework requiring authorization from the Texas Department of Motor Vehicles for companies to operate automated vehicles commercially on Texas roads.
This covers driverless, or SAE Level 4+, operations for passenger transport, meaning Robotaxi, or freight.
Tesla and other companies can self-certify their vehicles and tech as long as they:
- Operate in compliance with Texas traffic laws
- Maintain proper registration, title, and insurance
- Use compliant automated driving systems
- Record onboard activity and handle system failures and glitches safely.
The new authorization, which was first reported by James Stephenson on X, allows companies to utilize their own processes to determine if their vehicles are ready to operate without drivers.
🚨BREAKING:
Tesla has been authorized by the State of Texas to operate driverless vehicles commercially under the new law that took effect today, May 28th, 2026. Tesla has officially self-certified the software running on its robotaxis as Level 4. $TSLA pic.twitter.com/KSJdsvlaW5— James Stephenson (@ICannot_Enough) May 28, 2026
It is a rule that expedites the entire approval process, keeping agencies out of a usually long, lengthy, and frustrating task that is essential to technological advancements. It essentially means Tesla can launch commercial Robotaxi operations at this point.
On the very same day, Tesla continued the momentum as CEO Elon Musk shared a video of Cybercab units autonomously driving off the property at Gigafactory Texas. This is a major step in the story of the Cybercab.
Mass production of the Cybercab started at Giga Texas in April, and it is already heading out of the factory on its own.
Cybercab driving itself out of the GigaTexas factory pic.twitter.com/EwAMVVDjYy
— Elon Musk (@elonmusk) May 28, 2026
These two major events mark a drastic step forward in Tesla’s progress toward Cybercab and the permissions it needs to operate a self-driving ride-hailing service. Tesla is now able to operate autonomously under Texas law by self-certifying, and with the potentially imminent rollout of Cybercab, Tesla’s autonomous dreams are starting to take serious shape.
Elon Musk
The Tesla and SpaceX merger everyone is talking about is quietly building
Tesla and SpaceX may be closer to merging than Wall Street or either company is admitting.
Elon Musk has reportedly discussed merging Tesla and SpaceX with people close to him, according to CNBC, which cited sources familiar with the conversation. Tesla employees have long expected such a transaction and the topic is openly discussed internally, according to internal sources. With SpaceX is days away from kicking off its Wall Street roadshow for what could be the largest IPO in market history, this would be the first time the company will have public market currency to execute a stock-for-stock deal with Tesla.
The financial logic for a merger would make sense. A combined SpaceX and Tesla would create a conglomerate spanning rockets, satellites, electric vehicles, AI infrastructure, and energy storage valued at roughly $3.35 trillion to $3.6 trillion based on SpaceX’s IPO target range and Tesla’s current market capitalization. The two companies are already more intertwined than most people realize. SpaceX bought $697 million worth of Tesla Megapack systems for xAI data centers and $131 million worth of Cybertrucks. Tesla invested $2 billion in xAI, which subsequently merged with SpaceX. Past transactions also include Tesla selling solar equipment and parts to SpaceX, and SpaceX helping with Cybertruck materials.
Will Tesla join the fold? Predicting a triple merger with SpaceX and xAI
Musk himself signaled where this was heading in November 2025 when he posted on X, “My companies are, surprisingly in some ways, trending towards convergence.” Tesla and SpaceX announced a joint semiconductor fabrication facility in Austin called Terafab on the Gigafactory Texas campus, covering two advanced chip factories, with one serving Tesla’s AI needs for vehicles and Optimus robots, the other targeting space-based data centers under SpaceX’s infrastructure vision.
Wedbush analyst Dan Ives places the probability of a merger at 80% to 90% with a target completion in the first half of 2027. The mechanics of a deal became possible the moment SpaceX filed its S-1. Legal experts said a merger likely would not spark antitrust issues but would raise concerns among shareholders in each company, with questions around which company would be the parent, how a stock swap would take place, and who determines the appropriate price. Musk holds about 20% of Tesla’s equity but controls 85.1% of SpaceX’s voting power through a super-voting share class, meaning he would largely be negotiating the terms with himself.
Not everyone is convinced the timing is imminent. Traders on Kalshi place only 33% odds that a merger will happen before May 2027. The more immediate concern for Tesla shareholders is whether the SpaceX IPO pulls capital and Musk’s attention away from Tesla before any merger consolidates the upside for both.
What is clear is that the structural groundwork is already being laid. The Terafab announcement, the xAI merger, the shared supply chain, the cross-company balance sheet transactions, and now the IPO all point in the same direction. Whether the merger follows in 2027 or later, the two companies are already operating more like divisions of a single entity than independent competitors.
Elon Musk
SpaceX to become America’s Military data backbone for missiles, drones, and warfighters
The Space Force just handed SpaceX $2.29 billion to build the military’s space internet backbone.
The U.S. Space Force awarded SpaceX a $2.29 billion contract on May 26, 2026 to build the backbone of its Space Data Network, a satellite-based communications system designed to keep American military forces connected anywhere on Earth in real time. The contract is firm-fixed-price and requires SpaceX to deliver a fully operational prototype by the end of 2027.
In plain terms, the SDN Backbone is the plumbing behind the military’s space-based internet. It functions as a low Earth orbit satellite constellation providing robust, high-capacity, and low-latency data transport for the Joint Force, connecting sensors and weapons systems continuously, globally, and securely. Think of it as a private, hardened version of Starlink built specifically for battlefield communications, one that soldiers, ships, and aircraft can rely on even in contested environments where ground-based networks have been disrupted.
SpaceX is quietly becoming the U.S. Military’s only reliable rocket
The Space Force was direct about why SpaceX was selected. “The SDN Backbone leverages the best of commercial innovation and delivers a strong foundation for the SDN mission set — a huge benefit and enabler for our warfighters,” said USSF Col. Ryan Frazier.
“We aren’t trading speed for scale; we are demanding both. By using rapid prototyping and Other Transaction Authorities, we are ensuring our advanced solutions are integrated and delivered to the warfighter as fast as possible,” added USSF Lt. Col. Fry, SDN Backbone system program manager.
The SDN Backbone will work alongside the Space Development Agency’s Transport Layer, with the two systems forming a unified open architecture to provide critical data transport for current and future Department of War missions.
As Teslarati has reported, this is not SpaceX’s first Space Force contract of 2026. In April, the Space Force awarded SpaceX $178.5 million to launch missile tracking satellites, and SpaceX is already embedded in the Golden Dome missile defense software group. The $2.29 billion SDN Backbone award puts SpaceX at the center of how the American military communicates in space, a position with direct implications for its reported $1.75 trillion IPO valuation as the company heads toward a public offering as early as June 2026.
Tesla’s Robotaxi dreams just took a massive step toward reality
The Tesla and SpaceX merger everyone is talking about is quietly building
