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The Pacific Northwest has become the unlikely vanguard in the movement to protect renters from extreme heat.

Washington State’s 2026 legislative session ended not with a bang, but with an alarm. On a drizzly mid-March evening before adjourning for the year, lawmakers filed out of the capitol having narrowly averted a special session over a data center tax break bill. “Someone or something” had set off the rotunda’s fire alarm, according to a local news outlet; returning after the brief delay, legislators cast their final vote, approving the state’s $79.4 billion spending plan.
The alarm was, in many ways, a fitting end to the state’s adrenaline-pumping 60-day short session, which saw 1,669 new bills introduced. Most were DOA due to time and ever-present budget constraints. Among the casualties was HB 2265, a bill to “protect tenants from periods of extreme heat” by extending a landlord’s responsibilities to include adequate cooling in rental units alongside the usual standbys of basic habitability, heat and hot water.
Had the law passed, Washington — somewhat bizarrely — would have gone further than any other state in the country in pushing landlords to provide air conditioning or a similar cooling system to their renters. While such laws might be expected in places like California, Nevada, or Arizona (which comes closest by requiring landlords to maintain ACs that are already installed), in Washington, the largest city, Seattle, was in fact the least air-conditioned metro area in the country until 2021, and remains second only to San Francisco.
“A lot of people think of the Pacific Northwest as mossy, mountainous, green, and damp,” John Seng, the policy manager at Spark Northwest, a Seattle-based clean energy nonprofit, told me. “But that misses out that on the east side of both Oregon and Washington, things have been getting really hot for a long time.”
Indoor air temperature maximums are not a new idea — Dallas has had one since 2017 — but the few laws on the books are almost exclusively in hot-climate cities and counties. Yet extreme heat is spreading: Between 1970 and 2022, 95% of the nearly 250 U.S. locations analyzed by Climate Central saw an increase in the number of days per year with dangerously high temperatures, with an average increase of 21 days. At the same time, one in three Americans is a renter — a population far less likely to have central AC than homeowners. Though the Pacific Northwest would seem to be an unlikely leader in protecting people from extreme heat, it has nevertheless become a bellwether for the ability of local officials to protect their residents from increasingly deadly temperatures.
“We are changing our climate so much that now, in most places in the country, cooling is just as necessary as heating,” Brian Henning, the director and founder of the Gonzaga Institute for Climate, Water, and the Environment, told me.
Washington isn’t alone in responding to the changing conditions in its corner of the country. A similar story is playing out in Oregon, which failed to pass its own early-stage right-to-cooling bill, SB 54, during last year’s legislative session. (That bill would have required landlords of multi-family buildings to provide cooling when outdoor temperatures exceed 80 degrees.) Now, Portland’s Permitting and Development Bureau is exploring a maximum-temperature code for rentals, which activists hope will serve as a model for a legislative sponsor to take up in a future statewide session.
“It feels like the Pacific Northwest is beginning to grapple with questions that desert cities addressed decades ago, which is, namely: What constitutes a safe indoor temperature during extreme heat?” Vivek Shandas, the founder of the Sustaining Urban Places Research Lab at Portland State University, told me of the proliferation of such bills, ordinances, and laws in the area.
That ponderance is coming not a moment too soon. Of the 75 counties in Washington and Oregon, residents in all but seven have disproportionately low concern given their respective extreme-heat risks, according to research by Yale’s Program on Climate Change Communication published in Nature Communications this month. Of those 75 counties, just three scored below the national median on the CDC’s Heat & Health Index, a risk measurement that considers indicators such as historical heat exposure, prevalence of health conditions such as cardiovascular disease or diabetes, and socioeconomic factors like age and income. Nearly a third scored well within the upper range of risk nationally. Combined with the fact that architecture in the Northwest was designed for decades to retain heat, and that the region has some of the fastest-warming urban areas in the country, the upper left-hand corner of the country is uniquely susceptible — and unprepared — for extreme heat, the deadliest climate change and weather-related disaster in North America.
That fact was made tragically clear during the 2021 heat dome, the record-breaking, model-breaking event that killed more than 250 people across the states and served as the catalyst for housing activists, climate organizers, and policymakers. Though researchers like Shandas, who studies urban heat, had been aware that the Northwest was a public-health disaster waiting to happen, there were a few particularly startling takeaways: Though “most people think of heat risk as something that happens outside,” Shandas said, the vast majority of the people who died during the heat dome died inside, and most were likely renters living in multifamily homes. Some were even found with fans turned on full blast, pointed directly at their bodies.
“A lot of people don’t know that if your space is higher than about 90 degrees indoors, a fan actually increases your risk of heat‑related illness or death, not decreases it,” Henning said. That’s because a fan cools you by moving air over your skin to wick away sweat, a process that accelerates dehydration and can actually radiate heat into your body if the air temperature is warmer than your skin. Even worse, rather than lowering the indoor temperature, fans give an “illusion of safety,” Dante Jester, the climate resilience program manager at the Gonzaga Institute for Climate, Water, and the Environment, told me, so people delay moving to a genuinely cool place or calling for help.
“People’s cooling strategies that they’ve used for decades in Spokane” — where more than 300 people were hospitalized during the 2021 heat dome — “aren’t working anymore,” Jester went on. “Historically, people would open their windows at night. They would go for a drive and run the AC with their kids in the car seats. They would run fans. But all of these things are becoming less and less efficient and more and more dangerous.” What’s more, as smoke becomes an increasing public health hazard due to the duration and intensity of the fire season, officials are more reluctant to tell people to keep their windows open for a cross-breeze.
How, then, to keep renters — who make up between 30% and 40% of the households in Washington and Oregon — safe? The answer: Incrementally. Though HB 2265 died in committee this spring, Democratic lawmakers managed to pass its sister bill, SB 6200, even during a short session dominated by efforts to balance the budget and debate over the Millionaires Tax. The Senate bill makes it illegal for a landlord in Washington state to prevent a renter from installing their own AC unit — that is, it is an access law rather than a habitability one.
“The statewide policy that passed [SB 6200] was actually based on the renter’s right-to-install ordinance that we helped pass in Spokane in 2024,” Jester said. “We thought of it at the time as a first step, or an on-ramp, to this greater goal of requiring residencies to be cooled.”
If the Spokane right-to-install AC ordinance was the on-ramp to statewide adoption, then the failure of HB 2265 could potentially be shrugged off as jumping the gun. That’s because activists in Spokane are now testing whether true right-to-cooling legislation can find a pathway forward via a local ordinance, which would make it a legal requirement for landlords to provide a way to keep their units under 80 degrees Fahrenheit, the same way temperature minimums ensure they provide heat in the winter.
Shandas, the Sustaining Urban Places Research Lab researcher, told me he conceptualizes the path forward for right-to-cooling laws in the Northwest as a three-step approach. The first stage is permission — laws like the 2024 ordinance in Spokane and SB 6200.
The second stage is recognition of extreme heat as an imminent public health threat. Though the now-dead HB 2265 would have been a big push toward requiring landlord-provided ACs in rental units, it didn’t do so explicitly; rather, it tweaked the state’s rental code to include cooling alongside heating as a basic habitability requirement. A bill like HB 2183, which also died during the 2026 session, would have further required Washington counties to develop and implement heat response plans, which gets at the bills’ larger purpose: to grapple with the fact that the housing stock, legal system, policies, electrical systems, and even emergency services in the Northwest are all designed for a cooler climate.
Though it feels like an in-between stage, recognition is especially crucial, James Moschella, the climate and health program manager at Washington Physicians for Social Responsibility, a health professional-fronted environmental advocacy group, told me. When paramedics respond to a case of heat stroke, for example, the first thing they often do is place the patient in the bathtub in their own home, along with everything in their freezer, to try to lower their body temperature as quickly as possible. “Ambulance response times during the heat dome were significantly down because of the way they have to treat people at their homes,” Moschella said. “As a result, by the time paramedics often got to a home, in many cases the person was already dead.” One small part of a comprehensive heat plan would be anticipating that problem, perhaps by staging more ambulances on a hot day.
The third stage is performance standards — that is, defining enforceable indoor temperature limits, like what Spokane is moving toward. “I think this evolution mirrors how heating standards developed historically in other parts of the world,” Shandas said. “Unfortunately, I think we need to be accelerating this much faster, going from stage one to three in a fraction of the time that it took lower latitude regions to go through.”
Because there are few examples of existing temperature maximum laws, though, policymakers and researchers in the Northwest are feeling their way forward mostly on their own. Even something as basic as what the maximum temperature should be requires ponderance, debate, and compromise. In Spokane, policymakers settled on 80 degrees. “It’s similar to how it was done for heating, that every habitable space needs to be able to get up to 65 [degrees],” Shandas said. “Some would say, Wow, 65 is really high for a cold day, can’t you get by with 60? And it’s like, sure, you can, but you’re trying to make policy for a very large, diverse demographic.”
Eighty degrees Fahrenheit, while generally safe for most populations, is the point at which the body may begin to feel the stress or undergo physiological responses that affect certain medications, such as antipsychotics. Still, Henning told me he’d advocated for an even lower limit given existing research on safe sleeping temperatures, which puts the range closer to 74 to 76 degrees, especially for seniors and the very young.
Implementation is also a topic of discussion. Housing advocates in Spokane wanted to go beyond a “right to install AC” ordinance, not just because they believe cooling deserves to be recognized as a legal habitability requirement like heating, but also because of the potential financial burden of acquiring, installing, and especially running an air conditioner. What’s unique about the Spokane ordinance, though, is that it sets an expected indoor temperature rather than mandating how that temperature is achieved. “The goal isn’t to force people to buy air conditioning,” Henning said, “but to provide spaces that are safe.” Maybe the 80-degree threshold could be maintained, for example, by shading building windows with trees.
Powerful landlord advocacy groups have generally opposed right-to-cooling movements on the grounds that they’re very expensive. (Multifamily NW, a landlord trade association and one of the major opponents of Oregon’s SB 54, and Rental Housing Association of Washington, which opposed HB 2265, did not respond to my requests for comment.) Retrofitting costs, electrical capacity, and grid stress are legitimate concerns, Shandas told me. “Even heat pumps,” he said, “are pretty energy-hungry appliances, and older multifamily residential homes might not have good insulation or windows,” meaning you could end up with the efficiency conundrum the Rocky Mountain Institute’s Amory Lovins has memorably likened to running an AC in a tent.
Other researchers were less sympathetic to this case. “Infrastructure costs money, and that’s what landlords are agreeing to when they choose to buy units and then have them paid for by other people,” Jester told me. “That’s how it goes: If you’re renting to people, it should be a requirement that it has to be livable, in my opinion.”
Who pays, though, is one of the major questions of climate adaptation. No one is arguing that extreme heat isn’t dangerous. But is it on tenants, landlords, utilities, or governments to front the costs of making their homes and communities livable?
The problem sounds daunting, put that way. And the pressure is on: By Shandas’ estimation, what happens in Spokane and Portland, and eventually at the state level in Washington and Oregon, “is really going to be the test case for what the legal right to cooling looks like” in the United States. Organizers and researchers in Massachusetts, New York, and Minnesota have already reached out to him about their own efforts to codify maximum temperatures into law. “These are all higher-latitude regions that are looking to the Pacific Northwest and saying, Holy crap, yeah, we have to get ready for this, because if it could happen in Portland and Seattle, it can happen anywhere. We were the bellwether,” Shandas said.
But next year will be another tight budget year in Washington, and while Democrats control the legislature, HB 2265 will need tweaks to get a broader coalition on board. “I think nobody was quite ready to move without a little bit more of a plan on exactly how we would define healthy temperatures and measure them,” Seng, of Spark Northwest, told me of its initial failure.
“Another piece is cost,” Seng added. “I think housing developers get pretty squeamish about new requirements like that.” Sure enough, landlords have successfully watered down temperature regulations elsewhere, including L.A. County, which last year approved a maximum indoor temperature of 82 degrees for rentals located outside city limits — albeit with plenty of exemptions and delays available for property owners. Landlord groups have also so far successfully staved off a California-wide temperature maximum law by pouring millions into lobbying efforts.
But even more than the usual happy warrior attitude typical of activists, the researchers in Washington and Oregon described the right-to-cooling laws as inevitable, given the climate. The question is whether a multi-stage approach or the fast-track pursuit of local ordinances, rather than the sluggish statewide process, will yield results soon enough. The heat dome baking Europe this week serves as an ominous reminder that extreme heat may return to the region at any time, and the Northwest has had only five short years since its wake-up call in 2021 to prepare.
But prepare it has. “The legal invention of cooling rights — that’s part of what I’m really excited to be alive right now to see,” Shandas said.
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The Science Based Targets Initiative just released a major update to its signature rulebook for setting climate goals.
Companies have a new rulebook for what constitutes credible climate action. The Science Based Targets Initiative, an organization that seeks to align corporate sustainability plans with the goals of the Paris Agreement, published a major update to its signature Net Zero Standard on Thursday designed to help companies assess their progress on climate goals, not just set them.
The update marks a significant expansion of the standard, which previously defined what a good corporate emissions target looked like, but did not say much about how to achieve it. The new version sets requirements for what companies must do to prove they are advancing toward their benchmarks.
“The standard is moving from being focused on ambition only to really focused on implementation,” Alberto Carrillo Pineda, the SBTi’s co-founder and chief technical officer, told me.
This accompanies a broader rhetorical shift in the standard, which asks companies to demonstrate progress on a “best-efforts basis” rather than judging them solely on absolute emissions reductions. In the foreword to the standard, Chair Francesco Starace says that the SBTi made “an explicit choice to recognize that companies do not control everything, and that pretending otherwise does not serve anyone.”
That ethos permeates the revisions and additions to the standard. Here’s a breakdown of some of the biggest changes.
Version 2 of the standard introduces a new “implementation hierarchy.” Companies must first do everything in their power to reduce emissions directly. Once they have exhausted those options, they can then pursue indirect actions such as buying renewable energy certificates or certificates for low-carbon cement.
This isn’t just a guideline. It’s a reporting requirement. Companies are asked to “document and demonstrate” all of the actions they have assessed and implemented to reduce their emissions directly, as well as to define the constraints to pursuing additional reductions. They also have to describe their indirect actions and explain how they “complement, and do not substitute for” direct reductions.
The updated standard differentiates between larger and smaller companies, and those based in higher-income and lower-income countries, recognizing that the former in both cases will have an easier time decarbonizing than the latter.
Larger companies in higher-income countries, referred to as “category A companies” are required to set near-term, five-year targets for all emissions related to their businesses, whether they fall under scope 1, 2 or 3. All others are required to set targets only for scope 1 and 2. Category A companies are also required to verify much of their reporting to the SBTi with a third party, while this is optional for other companies.
The updated standard clarifies that in order for renewable energy certificates to count toward a company’s scope 2 target, they must be “deliverable,” or purchased from a clean energy source within the same grid region as the company. That means a company with offices or factories in Idaho can’t buy certificates from a solar farm in Florida. (The standard does seem to offer some wiggle room on that rule to companies with many locations.)
An earlier draft of the new standard released last year would have required that companies set targets for purchasing hourly-matched, deliverable clean electricity. That would mean looking at their energy consumption for every hour they operate and setting a goal to match it with an equivalent amount of locally produced clean power for a certain percentage of hours.
Much to the disappointment of proponents of this strategy, however, that’s not in the final standard. Companies can set scope 2 targets on an annual matching basis, meaning they can effectively claim they consumed solar power at night and will not have to do the hard work of trying to clean up the harder-to-decarbonize hours of the day.
The standard does, however, require those larger companies in category A to at least report the percentage of their energy use that they have matched with clean power on an hourly basis. This reporting rule aligns with a proposal by the Greenhouse Gas Protocol, a separate corporate standard-setter focused on emissions accounting. The SBTi also aims to encourage companies to make progress on hourly-matched clean power by creating a new dashboard showing which companies have exceeded certain benchmarks — 50% until 2030, 75% until 2035, and 90% from that year onward.
Previously, regular old carbon credits like the kind that pay a Brazilian landowner not to cut down trees or fund a methane capture system at a landfill had no place in the SBTi’s net-zero standard. Also, while the “net-zero” in the name implied that companies should eventually begin investing in carbon removal credits to make up for any residual emissions, the earlier version did not say when they should start doing that.
Now, the SBTi says it will require category A companies to begin covering some of their ongoing emissions with carbon removal beginning in 2035. Because companies are only required to set targets in five year increments, they won’t have to report on those efforts for several years. But the carbon removal industry will require investment now to be able to meet demand in 2035, so companies will likely need to begin buying credits today in order to meet that deadline.
Prior to 2035, companies will be able to earn kudos for purchasing carbon avoidance and removal credits by participating in something the SBTi is calling the “ongoing emissions responsibility program.” The program has three tiers that will recognize companies that are contributing to a lower, medium, and high degrees of carbon mitigation, ranked either by tallying dollars spent or tons of carbon abated. Companies will still not be allowed to count these credits when measuring progress toward their targets, however.
One question hanging over the news is whether the SBTi’s definition of a “science based target” is still appropriate. The organization requires companies to calibrate their targets to be consistent with limiting warming to 1.5 degrees Celsius above pre-industrial levels by the end of the century. But many scientists believe the world has already warmed more than 1.5 degrees. In theory, cooling the planet back down to this level by 2100 is still possible with a huge amount of carbon removal, but it appears exceedingly unlikely.
“Of course, there is healthy scientific debate about what is the most likely temperature outcome, so that's something that we are aware of,” Pineda said when I asked about this. “But we maintain the focus to catalyze transformation consistent with achieving net-zero emissions by mid-century.”
Pineda may have been downplaying how much the SBTi has considered this. After our call, I did a search for “1.5°” in the new version of the standard and the old one. The temperature target appeared 59 times in the old document, but just once in the new one, and only in the executive summary, where it was used to describe the SBTi’s larger mission as an organization. Nevertheless, the standard continues to emphasize a long-term goal of net-zero emissions by 2050, and there is no indication that the underlying modeled decarbonization pathways that the SBTi uses to validate targets are going to change.
SpaceX and Tesla have produced executives and founders across the clean energy world. Here’s what they had to say about working for their former boss.
While SpaceX founder and Tesla CEO Elon Musk is often lauded for turning technology like reusable rockets and American-made electric vehicles into thriving businesses in a way long thought impossible, or at least improbable, he has also more quietly done something about as unlikely: get investors excited about capital-intensive hard tech startups.
For most of the time Musk was sleeping on the floor of Tesla’s factory to oversee Model 3 assembly and his rockets were riding across the country on the back of flatbed trucks, the venture capitalists that fund the next generation of technology companies were largely enamored with software businesses, which required little capital to start up and could scale quickly with accelerating profitability.
Today, thanks in no small part to Musk, hard tech companies are able to raise hundreds of millions of dollars within a few years of being starting up, with top-flight venture capital firms such as Andreessen Horowitz building whole funds devoted to the broad sector.
That investor interest has helped nurture a series of startups founded and led by former SpaceX and Tesla employees. These types of businesses don’t have the forgiving characteristics of software companies; instead, they’re often incredibly capital intensive, and require years of design and manufacturing before profits show up. Climate tech and energy companies almost inevitably fall in this category, often working on trying to turn technology that may mostly exist in a lab with nascent markets and high barriers to scale into something that can generate real returns for investors.
To mark the occasion of SpaceX’s initial public offering, Heatmap decided to survey the landscape of SpaceX and Tesla alumni now cutting their own swath through the climate tech marketplace. We identified 40 founders and executives, who all together spent a total of 252 years working for Musk. They’ve since moved on to companies in 9 different industries, from Musk-adjacent categories such as batteries and electric vehicles to carbon removal and grid tech. Cumulatively they’ve raised at least $27 billion, according to the data available in Crunchbase. (Since we finalized this list, one more Musk alum-founded company has emerged from stealth. Welcome to the world, Ambrosia Energy.)
Heatmap asked these founders and executives by email what they learned from their experiences working at Musk-led companies, and we heard back from more than a dozen of them. The vast majority of those told us it was no accident that they’d ended up where they have after working for Musk.
“While working at Tesla, I was surrounded by people who were there for the hard stuff and thrived on it,” Mateo Jaramillo, co-founder and CEO of the long-duration battery company Form Energy and a former Tesla Energy vice president, told us. “It's not just that they tolerated it — that was the stuff they lived for. There are moments in a company's arc when that kind of mentality is required, and at Tesla in those days it was like walking through a crucible every single day, with truly no idea how things were going to resolve. And yet you keep going and figure it out along the way.”
Musk himself has been a formidable digester of investor capital, including from Founders Fund, the venture capital firm founded by his former PayPal colleague Peter Thiel, which invested in SpaceX before its first successful launch.
Founders Fund has since become an investor in several Musk-alumni-founded companies, including the fuel enrichment startup General Matter, the geothermal company Endurance Energy, and the hydrogen company Hgen.
Another frequent investor, Andreessen Horowitz, had previously been the great promoter of software businesses. Its cofounders Marc Andreessen and Ben Horowitz wrote the seminal essay “Why Software Is Eating The World,” which became a manifesto for its investments in businesses like Facebook (now Meta) and Twitter (now X). Since then, a16z, as it’s known, has expanded its remit and invested in several Musk-alumni founded companies, including the power electronics company Heron Power, the mining services company Mariana Minerals, electric boat company Arc, and home battery company Base Power.
These investments are not just simply giving money to Tesla and SpaceX employees to do the same things they did in their previous jobs. Many of the companies we looked at were founded by SpaceX alumni and have nothing to do with space, rockets, or satellites.
Mike Schroepfer, former Meta chief technical officer and founder of hard tech VC firm Gigascale Capital, which has invested in Heron and Form, as well as battery systems company Arbor and nuclear microreactor company Radiant, told us that when founders have a Musk company on their resume, it tells him “they’ve been trained to build in the physical world, which is rarer than people think.”
And what’s rare can be profitable.
“Hardware is capital-intensive for the best possible reason” Schroepfer said. “You’re building the foundations the world runs on, and those things have to work reliably and get cheaper as they scale. The dollar figure tells you investors are starting to take the physical world seriously again.”
Philip Schröder, who left the European battery startup Sonnen to run Tesla’s Germany and Austria business, told us that after he rejoined his former company, the European battery startup, they were able to raise “one of the largest cleantech financing rounds in Europe.”
It’s not just raising money where a SpaceX or Tesla pedigree helps. Many former employees of the two companies left with enough of a financial cushion to take a risk on something new. When asked how being part of SpaceX helped him found his own company, John Bucknell, who worked on the Raptor rocket engine at SpaceX, said that having worked for Musk gave him the “financial freedom” necessary to start a company — in his case Virtus Solis, which is developing solar power in space.
But it also doesn’t hurt when raising money to put a SpaceX or Tesla logo on a slide deck, considering the size of returns they’ve generated for their backers.
Former Tesla employees have started and run some of the buzziest and best funded battery, transportation, and electrical infrastructure companies in the world. These include Lucid Motors, led until recently by former Tesla VP of vehicle engineering Peter Rawlinson, battery recycling company Redwood Materials, founded by former Tesla chief technical officer J.B. Straubel, and Heron Power, founded by Drew Baglino, who worked at Tesla from 2006 to 2024, ending his career there leading its powertrain and energy divisions.
When asked how their current work was connected to their past work for Musk or what they had learned, the founders and executives we surveyed — especially the SpaceX alumni — focused more on management and engineering principles than anything specific to energy or transportation.
“You can get way more done in a day and can move way faster than you think,” Justin Lopas, the co-founder of the home battery company Base Power, and a former manufacturing engineer at SpaceX, told us of what he’d learned from Musk.
Musk’s legendary short deadlines (which he says he only expects to hit about half the time) came up frequently among the group. Describing his time at Tesla, Arch Rao, the founder and chief executive of the smart electric panel company Span and a former head of products at Tesla Energy, told us, “The milestones to hit were incredibly audacious, but with the right group of people, possible. This has been a key model for how Span has scaled from the very early days to today.”
Jonathan Criss, the co-founder and chief executive of the desalination company Vital Lyfe, who worked at SpaceX for over a decade on both the Dragon spacecraft and the satellite communications service Starlink, told us that the rocket company had a unique “building for rate” philosophy, where engineers work backwards from a specific production goal, as opposed to first designing a product and then figuring out how to manufacture it as cheaply as possible. “That capability lets us design and manufacture highly reliable products at a fraction of the cost of most of the industry,” Criss said.
Investors, too, recognize SpaceX and Tesla alumni’s ability to work fast. Schroepfer, of Gigascale Capital, told us that speed sets these founders apart. “They know physical products can take years to get from first unit to cost-competitive scale. Even with a long timeline, they move with urgency,” he said. “They get how iteration and cost-down curves only work if you move fast, learn fast, and scale deliberately.”
Several founders also talked about learning to challenge assumptions. “At Tesla, there was a strong culture of questioning established ways of doing things,” Enric Asuncion, the co-founder and CEO of the EV charging company Wallbox who worked as a program manager for vehicle charging at Tesla, told us. Austin Spiegel, the co-founder and CEO of the infrastructure management software company Sift and a former software engineer at SpaceX, said that his former employer never accepted that something was good enough just because it existed. “Instead of buying off-the-shelf software, they asked, what would this look like if we designed it for a company that's going to launch and land rockets for the first time? That stuck with me.”
A former product engineer for Tesla’s Powerwall battery business, Cole Ashman, gave another example. He described how, for years, enabling a home to island from the power grid during a blackout required a labor-intensive, expensive electrical job. Tesla engineered a backup switch that was quicker and easier to install, but it required utility cooperation. “Conventional wisdom said it would never get broad approval,” Ashman, who founded the battery startup Pila, told us. “Tesla did the unglamorous work of bringing utilities along and moving the codes and standards — and pulled the whole industry forward.”
The other management concept that came up frequently was “ownership,” the idea of devolving responsibility down to engineers who were directly responsible for the projects they were working on. Working at SpaceX “taught me how to run a challenging hardware development program: how to choose and organize engineers around a tough unsolved problem, and give each of them real ownership from concept to mission success,” Colin Ho, founder and chief technology officer at the electrolyzer company Hgen, told us.
Frank Tybor, the chief technical officer at Infravision, the drone grid maintenance company and a former launch engineer at SpaceX, told us that “one of the things that made SpaceX special was the concentration of exceptionally talented people who were willing to take ownership of difficult problems and work across traditional organizational boundaries to solve them.”
Andreessen has endorsed the description of Musk-run companies and SpaceX specifically as a “zone of shocking competence” that attracts the best engineers, which its alumni founders have tried to recreate. Justin Cohen, the founder and CEO of Maritime Fusion who did stints at both Tesla and SpaceX, told us the talent network was “analogous to SEAL Team 6 of engineering; there is no better on earth.”
Several mentioned the Musk alumni network as a recruitment resource for their own businesses. “Tesla has cultivated a highly passionate ecosystem of engineers and tech developers,” Rao, the Span founder, told us. “My experience at Tesla helped me quickly identify what a skillful talent pool looks like and expect rapid and ambitious development from them.”
Brad Hartwing, a former SpaceX manufacturing engineer and founder and chief executive of Arbor Energy told us that “several early Arbor employees came from SpaceX, and that shared experience helped us build a world-class engineering team quickly. Many of us have worked on complex, high-stakes technology; we’ve already proven that we can execute in demanding environments, which helps when building a hard-tech company from scratch.”
When asked to name specific, non-Musk employees that influenced them, one name came up more than another: J.B. Straubel, the former Tesla chief technology officer and founder of Redwood Materials.
“Straubel is easily one of the smartest yet incredibly humble engineers and leaders I’ve had the opportunity to work with,” Rao told us.
Straubel, along with Heron Power’s Drew Baglino, “were both influential in how they helped solve complex problems within the company while dealing with constant pressure on cash & company survival,” Kunal Girotra, former Tesla Energy chief and founder of the battery company Lunar Energy, told us.
Jaramillo, the Form Energy founder, also singled out Straubel and Baglino, saying, “They’re very different people from each other, but both technically world class, with incredibly high standards. They drove that mindset into their teams from an engineering perspective — to never compromise on those standards.” About Straubel specifically, Jaramillo said that he had an “amazingly calibrated impatience, to know precisely when enough study is done, to just push start and get going in the physical world, and accept that you're going to learn things along the way.”
While Musk and his legions of former employees have helped turn hard tech and climate tech into an investible sector for venture capitalists, the amount of money the companies we’ve looked at have raised — about $30 billion — pales in comparison to the hottest sector, artificial intelligence. Even SpaceX, the signature hard tech company of its era, is itself running a massive “neo-cloud” business, renting out data center capacity to companies like Anthropic and Google to the tune of around $2 billion a month.
That being said, Tesla and SpaceX, which together are worth around $3 trillion, will continue to produce engineers and managers with sizable net worths and resumes uniquely looked favorably on by investors.
More than 4,000 current and former SpaceX employees are expected to become instant millionaires after the IPO, with 400 potentially getting at least $100 million, generating a wave of wealth that can give potential founders the cushion necessary to found their own company — or the capital necessary to become investors themselves.
“I think this is the emergence of a hardware mafia,” Schroepfer told us. “The PayPal mafia helped define an era of software and internet companies. This group will probably define an era where the center of gravity moves back toward atoms: energy, industry, mobility, infrastructure, manufacturing, and the physical systems that modern life depends on.”
On Texas data centers, Holtec’s New Jersey plans, and Polish renewables
Current conditions: Las Vegas is well over 100 degrees Fahrenheit, and could hit 110 degrees by tomorrow • Tropical Storm Cristina is deluging Central America as it barrels toward the coast of El Salvador • Temperatures are already 110 degrees in Minab, Iran, where American missiles struck early this morning.
The two-month ceasefire is over. U.S. strikes on Iran began again Wednesday and continued early this morning as President Donald Trump vowed to make Tehran “pay the price” for stalled negotiations to end the conflict. The second day of strikes came hours after U.S. allies Bahrain, Kuwait, and Jordan came under Iranian missile fire. In response, oil prices surged yet again, right as U.S. inflation data showed a 4% price spike last month as higher energy prices ripple through the economy. Inflation is now at its highest level since April 2023. The price of West Texas Intermediate crude, the benchmark for American oil, shot up nearly 4% on Wednesday following the strikes, roughly twice the increase for the European and Emirati benchmarks.

Solar panels supplied a record 12.8% of the United States’ electricity last month, while coal fell to 12.2% in its fourth-lowest monthly share ever, according to a new analysis by the pro-renewables think tank Ember. It’s the first time in U.S. history that solar eclipsed coal for a whole month. Solar generated an all-time high of 45.5 terawatt-hours, exceeding its May 2025 output by 17% and surpassing last July’s previous record. This summer is on track to break yet more records. “U.S. solar power continues to set new records,” Nicolas Fulghum, a senior data analyst at Ember, said in a statement. “Overtaking coal for the first month on record shows just how far solar has come, from a niche contributor to the third-largest and fastest-growing source of power in the U.S. electricity system.”
The milestone comes as the U.S. prepares to produce more of its own solar panels. As I told you yesterday, America’s largest solar factory, South Korean giant Qcells’ plant in northern Georgia, is nearly at full capacity.
Texas has a reputation as a place where, if the land is yours, you can do what you want with it. That’s partly why the state has been such a hotbed for data center development. Well, the Republican leadership is pumping the brakes. In a letter to state regulators on Wednesday, Governor Greg Abbott recommended the legislature pass sweeping data center reforms. Among the policy changes The Texas Tribune highlighted:
The move comes in response to plummeting support among American voters for data center development. The latest poll from Heatmap Pro, which my colleague Robinson Meyer wrote up earlier this month, found that roughly three-quarters of U.S. voters now oppose data center development in their neighborhoods, including 55% who say they “strongly” oppose server farms.
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When the Department of Energy canceled the American Battery Technology Company’s nearly $58 million grant last October, it appeared to many as a sign that the Trump administration would go after virtually any firm awarded money by its predecessors, even if its business aligned with the White House’s policy priorities. But the Nevada-based battery and critical minerals startup said this week that the Energy Department had reinstated the grant, which was meant to support construction of the company’s first commercial lithium refinery. “Of the hundreds of DOE grants terminated last Fall very few have been able to successfully appeal the decisions and have their contracts reinstated,” American Battery Technology CEO Ryan Melsert said in a statement. “I am very proud of our team for relentlessly demonstrating the performance of these internally-developed critical mineral technologies and how crucial it is to implement and scale these commercial facilities to support the national security of the United States and enable its energy dominance.”
The Energy Department is also making moves on fusion. On Tuesday, the agency put out its roadmap for commercializing fusion energy, tapping more than 800 scientists to inform its analysis. “Fusion energy has entered a new era defined by extraordinary scientific progress and public-private momentum,” Darío Gil, the under Energy secretary for science, said in a statement. “With this roadmap, we now have the clarity, coordination, and sustained commitment needed to turn the promise of fusion into a reality for the American people.”
Holtec International was once the undertaker of the nuclear industry with a business split between manufacturing storage casks for spent fuel and decommissioning shuttered plants. But the company is nearly ready to turn a shuttered atomic power plant back online for the first time in U.S. history, with its Palisades nuclear station. It’s also considering rebuilding New York City’s defunct nuclear station, Indian Point. All the while, Holtec is racing to build its 300-megawatt pressurized water reactor. The first two units are set to debut at Palisades once the plant’s single older reactor is back online. Next it’s looking at building as many as four of the small modular reactors at Holtec’s half-demolished Oyster Creek nuclear station in southern New Jersey. If approved, the Asbury Park Press reported, the project would generate nearly 1.3 gigawatts of power.
I reached out to Patrick O’Brien, Holtec’s director of government affairs, who confirmed the story. “It’s a potential project post-Palisades SMRs,” he wrote in a text.
If you’re booking a flight right now, you might not yet be feeling the difference. But U.S. production of jet fuel has reached record highs as refiners scramble to respond to soaring prices following the closure of the Strait of Hormuz. By the start of May, the four-week average estimate of fuel production surpassed 2 million barrels per day for the first time on record, according to new analysis by the Energy Information Administration. But with domestic inventories still relatively high, much of that increased production is being exported.