Energy
CA’s solar tax supporters are trying to run a “wealthy vs disadvantaged” narrative: It doesn’t have to be
A look at the California Public Utilities Commission’s (CPUC) ‘s 204-page proposal for its proposed new net metering rules (NEM 3.0), as well as the comments of the initiative’s supporters, shows something interesting. Supporters of NEM 3.0 are arguing that the current net metering rules, NEM 2.0, are practically an assault on disadvantaged households and a multi-billion subsidy for wealthy homeowners.
This narrative could be found all over the CPUC’s NEM 3.0 proposal. In the document, the commission argued that the existing net energy metering tariff “negatively impacts non-participating customers; is not cost-effective; and disproportionately harms low-income ratepayers” since homeowners without solar are being shouldered with the price of maintaining the grid. A study of the state’s policies further noted that California ratepayers spent about $3 billion a year to support net metering.
As critics of the initiative, such as Tesla and other renewable companies and organizations in the state, launched efforts to combat the NEM 3.0 proposal, organizations supporting the CPUC’s proposal have adopted a pretty similar stance. Affordable Clean Energy for All, a coalition of groups that include open NEM 3.0 backers like Pacific Gas & Electric, Southern California Edison, and San Diego Gas & Electric, has been particularly active in pushing the idea that NEM 2.0 takes from the disadvantaged and gives to the wealthy.
Kathy Fairbanks, a spokeswoman from Affordable Clean Energy for All, highlighted this recently. “It’s hypocritical that people who claim to want to help disadvantaged communities are advocating to keep a regressive policy that takes from the poor and gives to publicly-traded companies to fatten their profits, increase their stock price and shareholder wealth,” she said.
But inasmuch as a “rich vs. poor” concept is compelling, such a simplistic narrative hardly addresses the issues that critics are bringing up about NEM 3.0. While there is some argument in the idea that companies like Tesla are fighting the proposal since it is involved in the residential solar business, the fact remains that rooftop solar in California is growing fastest in working and middle-class neighborhoods. Not millionaires in their massive mansions — just regular working individuals that are learning the advantages and practicality of renewable energy.
Solar Rights Alliance Director Dave Rosenfeld mentioned this in a statement last month, as critics of NEM 3.0 delivered over more than 120,000 public comments to the California Public Utilities Commission (CPUC) and Governor Gavin Newsom. “This is where the rubber hits the road on blackouts, rising electricity bills, and air pollution. The correct path is to help millions more working and middle-class people get solar so we can keep up our progress and reject the utility profit grab that threatens to take us backwards,” Rosenfeld said.
Contrary to the idea that net metering takes from the disadvantaged and gives to the wealthy, an analysis by national grid modeling experts Vibrant Clean Energy has estimated that the continued growth of distributed energy resources (DER) such as rooftop, community solar, and energy storage, could actually save California ratepayers $120 billion over the next 30 years. “What our model finds is that when you account for the costs associated with distribution grid infrastructure, distributed energy resources can produce a pathway that is lower cost for all ratepayers and emits fewer greenhouse gas emissions,” Vibrant Clean Energy CEO Dr. Christopher Clack said.
While the CPUC seems very determined to ensure that NEM 3.0 is approved, the voices against the initiative are growing louder. Apart from Tesla CEO Elon Musk, who called the proposal “bizarre” and “anti-environment,” other notable personalities have expressed their criticism of NEM 3.0 online. These include, interestingly enough, two actors who played Marvel’s The Incredible Hulk on the big screen, Edward Norton and Mark Ruffalo, as well as basketball legend Bill Walton. California Governor Gavin Newsom also seems a bit more open-minded than the CPUC, noting that there’s more work to be done in the NEM 3.0 proposal.
“That draft plan that was recently released, I just had a chance to review, and I’ll say this about the plan: We still have some work to do… Do I think changes need to be made? Yes, I do,” Newsom recently said.
The California Public Utilities Commission may vote on its NEM 3.0 proposal as early as January 27, 2022.
Don’t hesitate to contact us with news tips. Just send a message to tips@teslarati.com to give us a heads up.
Tesla just trademarked ‘MEGAPOD’ with the United States Patent and Trademark Office (USPTO), its latest move in what seems to be a hint that the company is incredibly focused on its AI efforts and storage needs as compute increases.
The application carries serial number 99893717 and lists the applicant as Tesla, Inc., located at 1 Tesla Road, Austin, Texas 78725.
The filing remains in ‘live pending’ status, and it is a new application waiting for assignment to an examining attorney. It has not yet been published or registered.
Tesla just trademarked MEGAPOD
Summary:
“Modular data center hardware systems for artificial intelligence computing, comprised of computer servers, computer hardware for artificial intelligence processing, computer networking hardware, electrical power distribution units, and… pic.twitter.com/3l85DsKadl— Robin (@xdNiBoR) June 19, 2026
According to the official goods and services description in the application, Tesla describes ‘MEGAPOD’ as:
“Modular data center hardware systems for artificial intelligence computing, comprised of computer servers, computer hardware for artificial intelligence processing, computer networking hardware, electrical power distribution units, and cooling systems, sold as a unit; self-contained modular computing hardware systems for artificial intelligence workloads; integrated computer hardware platforms for artificial intelligence computing, namely, enclosures containing computer hardware, power distribution hardware, and cooling hardware, sold as a unit; downloadable software for monitoring, managing, optimizing, and regulating modular artificial intelligence computing hardware systems.”
This description specifies complete, self-contained modular units that integrate servers and specialized AI processing hardware with networking components, power distribution, and cooling systems. It also includes associated downloadable software for oversight and optimization of these systems. The language emphasizes hardware sold “as a unit” and enclosures that combine the necessary elements for AI computing workloads.
Tesla has an established history of developing and commercializing modular hardware systems. Its Megapack product line, for example, consists of utility-scale battery energy storage systems designed as containerized units for grid applications. The MEGAPOD filing follows a similar pattern of protecting a name for modular, integrated hardware platforms, this time focused on artificial intelligence computing infrastructure.
This could be an early move, especially as Tesla did not have trademark rights to the word ‘Cybercab,’ the name of its self-driving, ride-hailing-focused vehicle.
Trademark applications of this type allow companies to secure priority rights to a name for defined categories of goods and services. The USPTO examines applications for compliance with legal requirements, including distinctiveness and absence of conflicts with prior marks. If the application proceeds successfully through examination, publication, and any opposition period, it could result in a federal trademark registration providing nationwide protection. This is what Tesla’s obvious intention is with ‘MEGAPOD.’
Public reports and analysis suggest MEGAPOD could represent modular, container-style AI computing pods designed for easy deployment. These would bundle servers, AI accelerators, power systems, and cooling into self-contained units suitable for distributed AI workloads. This approach aligns with Tesla’s announced AI compute strategy.
In March 2026, Elon Musk outlined plans for “Digital Optimus” (also referred to as Macrohard), a joint Tesla-xAI project for AI agents capable of handling complex digital tasks. The plans include running these agents on Tesla’s AI4 hardware in parked vehicles as well as dedicated compute units installed at Supercharger stations, which collectively offer substantial unused electrical capacity.
What is Digital Optimus? The new Tesla and xAI project explained
A modular hardware platform like the one described in the ‘MEGAPOD’ filing would support scalable, rapid deployment of such distributed compute resources. It could complement Tesla’s other AI infrastructure efforts, including the Dojo supercomputer used for training models and the development of AI systems for autonomous driving and robotics, by enabling edge or regional AI inference without reliance on traditional centralized data centers.
In a notable intersection of Big Tech powerhouses, Meta, led by Mark Zuckerberg, has partnered with Canadian energy infrastructure giant Enbridge on a significant renewable energy initiative that will rely on battery technology from Elon Musk’s Tesla.
The project, which was announced this week, marks another step in Meta’s aggressive push to power its expanding data center operations with clean energy, dispelling many of the complaints people have about them.
This new development is located near Cheyenne, Wyoming, and will feature a 365-megawatt (MW) solar farm paired with a 200 MW/1,600 megawatt-hour (MWh) battery energy storage system, also known as BESS. Tesla is providing the batteries for the project, valued at roughly $200 million.
The story was originally reported by Utility Dive.
This Wyoming project represents the first phase of Enbridge and Meta’s joint “Cowboy Project.” Once operational, it will deliver power to Meta’s regional data centers through Cheyenne Light, Fuel, and Power under Wyoming’s Large Power Contract Service tariff.
This tariff, originally developed in collaboration with Microsoft and Black Hills Energy, is designed specifically for large loads like data centers. It ensures that the renewable supply serves hyperscale customers without impacting retail electricity rates for other users.
The battery system will operate under a long-term tolling agreement, providing dispatchable capacity that enhances grid reliability. During periods of high demand, the utility can access the backup generation, addressing one of the key challenges of integrating large-scale renewables with the explosive growth of data center electricity demand driven by artificial intelligence.
This latest collaboration builds on prior joint efforts between Enbridge and Meta in Texas, including the 600 MW Clear Fork Solar, 152 MW Easter Wind, and 300 MW Cone Wind projects. Together with the Wyoming initiative, the companies have now partnered on roughly 1.6 gigawatts (GW) of combined solar, wind, and storage capacity.
The deal highlights the intensifying demand for reliable, low-carbon power from technology giants. Meta has committed to supporting its data center growth with renewable energy, joining peers like Microsoft and Google in seeking large-scale solutions. Enbridge’s Allen Capps described the project as “one of the larger utility-scale battery installations supporting U.S. data center operations and growth.”
The involvement of Tesla’s battery technology adds an intriguing layer, linking two of the world’s most prominent tech leaders—Zuckerberg and Musk—in the clean energy transition.
As data centers continue to drive unprecedented electricity load growth across the United States, projects like this one illustrate how hyperscalers are turning to strategic partnerships with traditional energy players and innovative storage solutions to meet both sustainability goals and reliability needs.
Elon Musk
Why SpaceX just made a $60 billion bet on AI coding ahead of historic IPO
SpaceX has secured an option to acquire Cursor AI for $60 billion ahead of its historic IPO.
SpaceX announced today it has struck a deal with AI coding startup Cursor, securing the option to acquire the company outright for $60 billion later this year, while committing $10 billion for joint development work in the interim. The announcement described the partnership as building “the world’s best coding and knowledge work AI,” and comes just days after Cursor was separately reported to be raising $2 billion at a valuation above $50 billion.
The move makes strategic sense given where each company currently stands. Cursor currently pays retail prices to Anthropic and OpenAI to the same companies competing directly against it with Claude Code and Codex. That means every dollar of revenue Cursor earns partially funds its own competition. With SpaceX bringing computational infrastructure to the Cursor platform, that could reduce Cursor’s dependence on OpenAI and Anthropic’s Claude AI as its providers. Access to SpaceX’s Colossus supercomputer, with compute equivalent to one million Nvidia H100 chips, gives Cursor the infrastructure to run and train its own models at a scale it could never afford independently. That one change restructures the entire unit economics of the business.
Elon Musk teases crazy outlook for xAI against its competitors
Cursor’s $2 billion in annualized revenue and enterprise reach across more than half of Fortune 500 companies gives SpaceX something its xAI subsidiary currently lacks, which is a proven, fast-growing software business with real enterprise distribution.
For Cursor, SpaceX’s $10 billion in joint development funding is transformational. Cursor raised $3.3 billion across all of 2025 to reach that $2 billion in revenue. A single $10 billion commitment from SpaceX, even as a development payment rather than an acquisition, dwarfs everything Cursor has raised in its entire existence. That capital accelerates product development, enterprise sales infrastructure, and proprietary model training simultaneously.
The timing is deliberate. SpaceX filed confidentially with the SEC on April 1, 2026, targeting a June listing at a $1.75 trillion valuation, in what would be the largest public offering in history. The company is expected to begin its roadshow the week of June 8, with Bank of America, Goldman Sachs, JPMorgan, and Morgan Stanley serving as underwriters. Adding Cursor to the portfolio before that roadshow gives IPO investors a concrete enterprise software revenue story to price in, alongside rockets and satellite internet.
The deal also addresses a weakness that became visible after February’s xAI merger. Several xAI co-founders departed following that acquisition, and SpaceX had already hired two Cursor engineers, signaling where its AI talent strategy was heading. Cursor, for its part, faces a pricing disadvantage competing against Anthropic’s Claude Code.
Whether SpaceX exercises the full acquisition option before its IPO or after remains the open question. Either way, this deal reshapes what investors will be buying into when SpaceX goes public.
Elon Musk sends first warning to SpaceX short sellers
Tesla reveals first vehicle model to receive Starlink integration
