Tag Archives: Elon Musk

The Elite of the Elite: Musk, Thiel, Andreessen, Luckey

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Since January 2025, more than three dozen employees and associates of Musk and fellow tech titans Peter Thiel, Marc Andreessen and Palmer Luckey have been tapped for roles at federal agencies critical to their businesses, a Wall Street Journal analysis found. The roles put them in departments that oversee, regulate and award business to the four men’s companies, according to personnel appointments, lawsuits, ethics disclosures and contract data, creating a web of potential conflicts that ethics experts call unprecedented.

The group includes current and former employees as well as lawyers, investors and financial advisers of the tech executives. They make up most of the identified people working for the Department of Government Efficiency, the powerful cost-cutting task force created to streamline federal bureaucracy… Others have been appointed to key roles across the government.

Companies founded, owned or invested in by Musk, Thiel, Andreessen and Luckey have won more than a dozen federal contracts totaling about $6 billion since President Trump’s inauguration, and are pursuing billions more… Their business interests are often intertwined: Musk’s SpaceX was backed by Thiel’s Founders Fund and Andreessen’s a16z; both venture funds also backed Anduril Industries, a defense-tech startup co-founded by Luckey.

Excerpt from Shane Shifflett et al., Silicon Valley’s New Hold on Washington, WSJ, May, 16, 2025

Musk’s Own Town–Starbase Texas

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On May 3, 2025, Elon Musk’s SpaceX prevailed in an election over the weekend to turn Starbase, his launch site in Texas, into a city. Starbase was victorious in becoming a type C city, which in Texas applies to a previously unincorporated city, town or village of between 201 and 4,999 inhabitants. The city includes the SpaceX launch facility and company-owned land covering a 1.6 square-mile area.

What is a Company Town from Wikipedia

The mayor is 36-year-old Bobby Peden, who has spent more than 12 years working for SpaceX and is currently vice president for Texas test and launch operations. Starbase has two commissioners, both from the SpaceX employee ranks….Musk, who has assumed a central role in President Donald Trump’s administration responsible for slashing the size of the federal government, began acquiring land for SpaceX in Boca Chica, Texas, about a decade ago. The first integrated Starship vehicle launched from the site, known as Starbase, in April 2023, and exploded in mid-flight. The U.S. Fish and Wildlife Service soon disclosed details about the aftermath of the explosion, including that a “3.5-acre fire started south of the pad site on Boca Chica State Park land,” following the test flight.

State and federal regulators have fined SpaceX for violations of the Clean Water Act, and said the company had repeatedly polluted waters in the Boca Chica area. Environmental advocates and indigenous groups have also sued both the Federal Aviation Administration and SpaceX over the company’s flight tests and launch activity in the area.

Those groups said in legal filings that SpaceX caused harm to local habitat and endangered species due to vehicle traffic, noise, heat, explosions and fragmentation caused by the company’s construction, rocket testing and launch practices.

Excerpts from Lora Kolodny, Here are the SpaceX employees who were elected to run Musk’s new company town of Starbase, CNBC, May 5, 2025

The Monetizers: Cook versus Musk

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Apple is clashing with Elon Musk in its push to eliminate cellphone dead spots with satellite technology. The iPhone maker is investing heavily in satellite-based communications that keep users connected in places where traditional wireless signals aren’t available. Musk’s SpaceX, meanwhile, has launched more than 550 satellites that provide cellphone connectivity via its Starlink service. To build capacity, the companies are competing for valuable spectrum rights—airwaves to carry their signals—which are in limited supply. Apple’s outer-space investments have drawn Musk’s ire, people familiar with the matter said. SpaceX has pushed federal regulators to stall an Apple-funded satellite expansion effort. SpaceX recently asked the Federal Communications Commission to dismiss a Globalstar application seeking permission to use certain spectrum for the new network of Apple-financed satellites.. It called the airwaves it uses to carry Apple users’ emergency signals an underused resource.

Excerpts from Drew FitzGerald, Apple and Musk Clash Over Satellite Expansion Plans, WSJ, Mar. 30, 2025

The Dirty Environmental Tricks of Elon Musk

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Elon Musk made big promises to Wall Street about Tesla’s Model Y SUV in 2022, and the company was ramping up its production in Austin, Texas, when environmental problems threatened to derail his plans. The door to the plant’s giant casting furnace, which melts metal to be molded into the Model Y’s parts, wouldn’t shut, spewing toxins into the air and raising temperatures for workers on the floor to as high as 100 degrees. Hazardous wastewater from production—containing paint, oil and other chemicals—was also flowing untreated into the city’s sewer, in violation of state guidelines. Tesla left the costly problems largely unaddressed during the critical ramp-up. As a result, the company’s 10 million-plus square foot plant—among the largest car factories in the world—dumped toxic pollutants into the environment near Austin for months.

This account of the Austin plant’s environmental problems, which haven’t been reported previously, comes from emails between Texas regulators and the company obtained by The Wall Street Journal in response to public-records requests, as well as interviews with former employees and other documents, including a memo sent by a whistleblower to the Environmental Protection Agency….Former employees said they feared they might lose their job if they drew attention internally to potential environmental hazards, because senior managers didn’t consider such issues to be mission critical. As head of the company, Musk set the tone, these people said, pushing employees to move fast and complaining frequently in public statements that unnecessary regulations are strangling the U.S.

Musk is considered a champion of the environment for his role in pioneering the electric car industry. He has said the mission of Tesla, which is the largest maker of electric cars in the U.S., is to “protect life on Earth.” Yet across his business empire, Musk’s companies show a pattern of breaking environmental rules again and again, federal and state government filings and documents show.

Tesla’s Fremont, Calif., facility has accumulated more warnings for violations of air pollution rules over the past five years than almost any other company’s plant in California, according to a Journal analysis of informal enforcement actions in the EPA’s compliance database. It is second only to a refinery owned by oil-and-gas behemoth Chevron, which is in nearby Richmond.

In 2024, California regulators said Tesla violated air-pollution permits at its Fremont factory 112 times over the past five years and alleged it repeatedly failed to fix equipment designed to reduce emissions, releasing thousands of pounds of toxic chemicals in excess of permissible limits into the surrounding communities. “

Musk’s rocket company, SpaceX, has also had run-ins with regulators in Texas and community pushback in Florida, including over the impact of its launches on local plants and animals. Federal regulators recently fined the company for dumping about 262,000 gallons of wastewater from launches into wetlands in Texas without a permit. SpaceX has denied the allegations. 

Excerpt from Susan Pulliam and Emily Glazer,  Musk Says He Wants to Save the Planet. Tesla’s Factories Are Making It Dirtier, WSJ, Nov. 25, 2024

Cars as a National Security Risk: Tesla v. BYD

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In February 2024, President Biden ordered the Commerce Department to open an investigation into foreign-made software in cars, citing Chinese technology as a potential national-security risk. Chinese efforts to dominate the global auto industry posed clear security risks to the U.S. “Connected vehicles from China could collect sensitive data about our citizens and our infrastructure and send this data back to the People’s Republic of China,” Biden said in a statement. “These vehicles could be remotely accessed or disabled.”

The Biden administration has been trying to reduce the U.S. auto industry’s reliance on China, including using tax credits to boost electric-vehicle sales and pushing automakers away from Chinese suppliers. China became the world’s biggest auto exporter, shipping an estimated 5.26 million domestically made vehicles overseas, according to the China Passenger Car Association. Part of that growth came in the electric-vehicle market, where the country sold more than one million China-made EVs overseas.

Tesla Chief Executive Elon Musk has said Chinese car companies have already had much success outside of China and that they are now the “most competitive” globally.  “If there are not trade barriers established, they will pretty much demolish most other car companies in the world,” Musk said during Tesla’s earnings call in January 2024.

The Chinese government has also raised national-security concerns about Western-designed cars sold to its own citizens, saying they could be used for gathering data and information. In 2021, China restricted the use of Tesla vehicles by military staff and employees of key state-owned companies, saying the car’s cameras record images constantly and obtain data, including when, how and where the vehicles are used.

Excerpts from Gareth Vipers, Chinese Automakers Pose U.S. National-Security Threat, Biden Says, WSJ, Feb. 29, 2024

SpaceX Falcon

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A SpaceX Falcon rocket lifted off from the Kennedy Space Center in Florida on May , 2017 to boost a classified spy satellite into orbit for the U.S. military, then turned around and touched down at a nearby landing pad.

It was the 34th mission for SpaceX, but its first flight for the Department of Defense, a customer long-pursued by company founder Elon Musk. The privately owned SpaceX once sued the Air Force over its exclusive launch services contract with United Launch Alliance (ULA), a partnership of Lockheed-Martin and Boeing.)  The liftoff of a classified satellite for the National Reconnaissance Office (NRO) officially broke ULA’s 10-year monopoly on launching U.S. military and national security satellites.

In addition to the NRO’s business, SpaceX has won two Air Force contracts to launch Global Positioning System satellites in 2018 and 2019.  For now, the military’s business is a fraction of more than 70 missions, worth more than $10 billion, slated to fly on SpaceX rockets. But with up to 13 more military satellite launches open for competitive bidding in the next few years and ULA’s lucrative sole-source contract due to end in 2019, SpaceX is angling to become a majo launch service provider to the Department of Defense.

A month ago, SpaceX for the first time launched one of its previously flown rockets to send an SES communications satellite into orbit, a key step in Musk’s quest to demonstrate reusability and slash launch costs.

Excertps, SpaceX Launches US Spy Satellite on Secret Mission, Nails Rocket Landing, Space.com, May 1, 2017