You’re out of free articles.
Log in
To continue reading, log in to your account.
Create a Free Account
To unlock more free articles, please create a free account.
Sign In or Create an Account.
By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy
Welcome to Heatmap
Thank you for registering with Heatmap. Climate change is one of the greatest challenges of our lives, a force reshaping our economy, our politics, and our culture. We hope to be your trusted, friendly, and insightful guide to that transformation. Please enjoy your free articles. You can check your profile here .
subscribe to get Unlimited access
Offer for a Heatmap News Unlimited Access subscription; please note that your subscription will renew automatically unless you cancel prior to renewal. Cancellation takes effect at the end of your current billing period. We will let you know in advance of any price changes. Taxes may apply. Offer terms are subject to change.
Subscribe to get unlimited Access
Hey, you are out of free articles but you are only a few clicks away from full access. Subscribe below and take advantage of our introductory offer.
subscribe to get Unlimited access
Offer for a Heatmap News Unlimited Access subscription; please note that your subscription will renew automatically unless you cancel prior to renewal. Cancellation takes effect at the end of your current billing period. We will let you know in advance of any price changes. Taxes may apply. Offer terms are subject to change.
Create Your Account
Please Enter Your Password
Forgot your password?
Please enter the email address you use for your account so we can send you a link to reset your password:
Only somebody like Elon Musk could have built Tesla. Now he could destroy it.

Tesla suffered yet another media black eye this week, when Reuters reported that the automaker had built deliberately false range estimates into its electric vehicles. According to the article, under the personal direction of CEO Elon Musk, the range estimation was rigged to exaggerate how far it could go, only triggering more realistic numbers when it got below 50 percent so the car could make it to a charging station. Then when that triggered mass repair requests from customers who thought their cars were broken, the company allegedly set up a “Diversion Team” to automatically close them out as quickly as possible.
This kind of thing is just par for the course for Tesla. Hyperbole, exaggeration, spin, and occasional outright dishonesty were how Musk built the company into a major force in the auto industry. But now his brand of careening irresponsibility is a threat to the company’s future.
Some good background on Tesla’s condition can be found in Ludicrous, an excellent book by automotive journalist Edward Neidermeyer, published back in 2019. He argues convincingly that Tesla’s initial success was precisely because Elon Musk is hilariously unsuited to the auto manufacturing industry. Building cars is an exceptionally challenging business, because of the huge capital requirements, strict safety regulations, and resulting low unit margins.
Get one great climate story in your inbox every day:
Automakers also have to predict both what customers might like to buy several years in advance and predict how many sales they might make of each model, meaning heavy capital risk. And as the industry has evolved — particularly under competition from Japanese manufacturers — customers have come to expect extremely high quality and reliability even from cheaper mass-market vehicles, making success even more difficult.
In short, efficiency, standardization, and consistency are the name of the auto game. As Neidermeyer writes: “Successful automakers are giant, process-driven bureaucracies that rely on rigidly systematized cultures to manage a continent-spanning ballet of manufacturing operations, supply chains, service infrastructure, and regulatory compliance.”
Needless to say, Tesla was not anything like this. It came out of the freewheeling culture of Silicon Valley, with its motto of “move fast and break things,” its dogmatic ideology that every other institution in society but the tech industry is riddled with inefficiency and incompetence, and its belief that any problem can be solved by genius innovators hacking together solutions on the fly.
Musk viewed the stodgy, hyper-bureaucratic auto industry procedures with contempt, and assumed he could do better and cheaper with some good old Silicon Valley magic. He made wild-eyed promises, instructed his team to build factories that would move far faster than the deliberate pace at a traditional factory, and set impossible targets. As a result, Tesla consistently failed to meet its production goals, consistently struggled with factory operations, and suffered consistent quality problems. While Teslas are sleek and fancy-looking, customers have regularly complained of poor body panel alignment, leaks, rattles or other noises, bad service experiences, poor reliability, and other problems.
But Musk is — or was, at least — an hype man. He made grandiose promises about upcoming products and features — often shading into flagrant dishonesty, as shown in the range story above or the time when he oversaw a staged video of Tesla’s Autopilot feature. At the same time, he viciously attacked critics, often singling out journalists by name or even threatening to sue them, stifling much criticism. All this inspired a fervent cult of personality, heroic effort from key workers (though also high employee turnover), and a large cult-like community of investors who boost Tesla’s stock.
Musk also got lucky. He had the advantage that electric drive trains are dramatically simpler than internal-combustion ones, with far fewer parts and far less maintenance required, and also produce maximum torque at idle for breathtaking acceleration. He also got a large, low-interest loan from the federal government under the Obama administration, plus numerous other state and federal subsidies for producing zero-emission cars.
All this allowed Musk to keep raising money and selling stock to fund a consistently unprofitable business for years. His Silicon Valley-brained approach was terrible for actual factory production, but it helped him create a legend. And this really does seem to be the only way you could have built a mass market electric car startup. Realistic promises, careful engineering, and truthful marketing would have run headlong into the nearly impossible economics of the business. Nissan found this out when its Leaf project, in which it invested heavily, failed to live up to expectations, because it was a boringly useful appliance without any utopian dreams attached.
The problem for Tesla was that propaganda is not a sustainable business model. To keep the hype train going, Musk had to keep making more and more fantastical promises, and eventually his credibility started to erode. Meanwhile, the rest of the auto industry got into the EV game, including established fancy brands who took direct aim at Tesla’s aging luxury sedan and SUV models.
Neidermeyer thus predicted that Tesla would eventually stumble into bankruptcy, like every other major car startup since the 1920s. And this wasn’t an implausible idea at the time. Up through mid-2019, the company had posted a quarterly profit on just three occasions in its entire existence.
But a funny thing has happened since then. Starting in 2020, and accelerating through 2022, Tesla has posted consistent large profits, reaching a peak of $3.7 billion in the last quarter of 2022. There are two obvious explanations. The first is the subsidies in the Inflation Reduction Act. Tesla had previously run through its allotment of federal tax credits for its cars, but the law restored them for many of its models, boosting demand. The IRA also has a large subsidy for battery production, which granted the company between $150-250 million in the second quarter of this year.
The second explanation is that Musk is now spending most of his time running Twitter into the ground instead of fiddling with Tesla’s factories and models. As The Wall Street Journal reported back in May, Tesla’s Chief Financial Officer Zach Kirkhorn is now de facto running the company in Musk’s stead. By all accounts, Kirkhorn is exactly the kind of cool-headed, logical, spotlight-averse type of executive the company badly needs. Under his guidance over the last couple years Tesla seems to have focused on the boring nitty-gritty details of factory production, ironed out most of its production kinks, and is now delivering consistent numbers of vehicles. The company’s brand, meanwhile, remains strong enough that a critical mass of customers automatically turn to Tesla when considering an EV, despite it not releasing a new consumer model for the last three years.
Perhaps Musk’s Twitter purchase will be Tesla’s salvation. He’s already lost tens of billions of dollars on the deal, and his increasingly erratic antics on the platform have torched most of what remained of his reputation as a genius innovator. Most recently, he tweeted that he had reinstated the account of a QAnon conspiracy theorist who was banned for, in Musk’s words, “posting child exploitation pictures.” That’s an excuse for the Tesla board to give him the boot if ever there was one.
As a business, Tesla needed Musk’s megalomania and cult of personality to get off the ground. But now he is an existential threat. He remains CEO, and he’s gotten markedly more unhinged since spending hours and hours per day bantering online with antisemitic trolls. He could take back control at any time, demanding disruptive new changes to its factories or promising a new car that will, I dunno, fly into space. (The upcoming new Roadster — which Musk promised in 2017 to be delivered in 2020 and hasn’t been seen since — is supposed to have a package including “cold gas thrusters” from SpaceX.)
If Tesla wants to survive over the long term, it’s time for the adults to take charge.
Read more about Tesla:
Log in
To continue reading, log in to your account.
Create a Free Account
To unlock more free articles, please create a free account.
Current conditions: Des Moines, Iowa, is bracing for thunderstorms through Thursday night • Temperatures in Touggourt, in northern Algeria, are soaring north of 103 degrees Fahrenheit • European forecasters expect the brewing El Niño conditions forming now could become the strongest ever recorded.
Last August, the Internal Revenue Service issued strict new rules for solar and wind developers hoping to tap the federal tax credits known as 45Y, for the production of carbon-free electricity, and 48E, for investment in green generating assets. For years, the U.S. government had required companies to invest 5% of the total cost of the project by a certain deadline to qualify for the rebates. But last summer, the Trump administration eliminated the 5% threshold and instead mandated that projects over 1.5 megawatts in capacity show evidence that physical construction has begun to be eligible for the writeoffs. In all, the new rules “could have been so much worse,” Heatmap’s Emily Pontecorvo wrote at the time. But requiring construction to start narrowed the scope of how many turbines and panels could be built before the two tax credits are phased out this July 4. With less than a month to go before the credits go away, a federal court has intervened to restore the original 5% rules. On Saturday, the U.S. District Court for the District of Columbia overturned the Internal Revenue Service’s strict new rules. The decision found that the Trump administration had repeatedly failed to back up its justifications for eliminating the 5% provision, consider reasonable alternatives, or demonstrate that the policy change wasn’t motivated by discriminatory views of the wind and solar sectors. “Evidence in the record leaves substantial doubt that the proffered explanation sincerely accounts for the agency’s decision,” the ruling reads. “A thorough review of the record undercuts the conclusion that the defendants made a reasoned decision to eliminate the 5% safe harbor for wind and large-scale solar projects based on concerns about stockpiling.”
While significant, the decision — which was effective immediately — doesn’t change the Trump administration’s restrictions on using tax credits for projects made with Chinese imports. And Crux Climate, the tax credit marketplace, cautioned that few developers may be able to spring into action to seize on the ruling in the next 26 days before the rebates officially end.
New York State lawmakers passed a one-year moratorium on new data center construction that would pause permits on the facilities and require the state to create new rules on energy use, community investment, and labor standards for server farms. But News10, Albany’s ABC affiliate, warned that Governor Kathy Hochul, a Democrat, had not yet indicated whether she would sign the bill.
The move came as NBC News reported that Illinois Governor JB Pritzker, another Democrat, outlined plans to temporarily halt tax breaks to data centers ahead of a call to state lawmakers to come up with a new framework for how the facilities should be developed. The data center backlash, as Heatmap’s Robinson Meyer wrote, is becoming impossible to miss, with roughly 70% of Americans now opposing server farms built near their homes. More than 60% of Americans now support placing a moratorium on data center construction.

Desalination, as my colleague Katie Brigham put it in March, is “having a moment.” It’s not hard to see why. The San Diego County Water Authority is generating so much water from a desalination plant the utility opened a decade ago that it has not only ended its own shortfalls, it has produced a surplus. Now, as a result, the California city is poised to sell some of its rights to Colorado River water to Arizona and Nevada under the first large-scale deal to trade water between the states entitled a share of what flows through the nation’s fifth-longest river. The agreement highlights how desalination could “help parched inland states fill a widening gap between water supply and demand,” The New York Times reported.
It’s a welcome development. Just last week, experts told the Utah News Dispatch that the Colorado River’s largest reservoirs are approaching a “system crash.”
Sign up to receive Heatmap AM in your inbox every morning:
New York’s Legislature might have backed its Democratic governor’s bid to weaken the state’s climate law, but Rhode Island is taking a different approach. Lawmakers in New England’s smallest state rejected Democratic Governor Dan McKee’s proposal to slash Rhode Island’s climate programs in the name of affordability. On Friday, E&E News reported that the state budget lawmakers advanced last week nixed the changes to clean energy policies.
In January, the United Kingdom, Norway, and several major European Union nations including Germany and Denmark agreed to a pact to build out a sweeping array of wind turbines in the North Sea, turning the waterway into “the world’s largest clean energy reservoir.” If the pledge holds, roughly 11% of the 222,000-square-mile sea could be covered in turbines. That’s the finding of a new study from Heriot-Watt University in Scotland. Under the current target, the North Sea would host a total of about 19,400 turbines by the middle of this century. By 2030, the U.K. alone is on track to have roughly 4,200 turbines, followed by Germany with about 2,700, and the Netherlands with 1,700, according to Renewables Now. The Dutch would claim the highest offshore wind density, with wind farms covering around 19% of its North Sea waters by 2050, followed by Belgium at 18%.

There’s been much ado about Chinese electric vehicles being built in Mexico. But on Sunday, Mexican President Claudia Sheinbaum unveiled the Olinia — a 100% domestically designed electric van that looks a bit like Toyota’s Kayoibako EV minivan. In a post on X, she proudly called it “the electric car created by young Mexican women and men.” The name harkens to the Nahuatl word for “movement.”
Just look at Heatmap’s latest poll results.
A few times a year, Heatmap News surveys a few thousand Americans on the biggest questions driving the world of energy, environment, and climate change. We’ve spent the past few days writing up the results of our latest poll, which was in the field in late May and which I thought was particularly striking.
It’s worth taking a step back to look at the biggest results together, because the American view of data centers is essentially in free fall:
The upshot of these findings: The public‘s turn against artificial intelligence and AI infrastructure is real, widespread, and cross-partisan. It doesn't matter whether Americans started out tolerating data centers or having no opinion about them; they now seem to resent them en masse.
Sign up to receive Heatmap Daily in your inbox:
These results also suggest Americans see little distinction between data centers as energy users and data centers as the physical embodiment of AI and Big Tech. At Heatmap, we can be a wonky and energy-focused bunch, and so we tend to think about data centers primarily as large-scale electricity users. I think most approaches to come up with “data center policy” do the same. We know data centers are distinctive in some ways, of course — an AI data center might require more on-site batteries or power generation than, say, an EV factory — but fundamentally it is just another air polluter, large-scale power user, and light-industrial land user.
But the public does not see things this way. Americans understand data centers in the context of the much broader AI policy conversation about jobs, growth, alignment, and even human extinction. And so, I should add, do politicians: Senator Bernie Sanders has framed his data center moratorium proposal as a response to rapid AI development as much as anything having to do with energy affordability. For that reason, I wonder how long the distinction between these two policy conversations — data centers here, and AI policy over there — can persist.
One last thought on this topic: Is the public’s resentment starting to affect the AI boom overall? I think it might be. It was hard for me not to think of our polling results — or our analysis of canceled data center projects — as I read about a recent JPMorgan analysis that found America’s data center boom is “falling way behind schedule,” in the words of The Wall Street Journal. More than 60% of the data center capacity that is supposed to come online next year has yet to break ground, according to the bank; another 7% is “delayed.”
That’s partially due to equipment and labor shortages, but it also might be what a siting-and-permitting bottleneck would look like. Much like renewable developers or venture capitalists, data center developers work by picking a number of sites and trying to develop on all of them. If only a few sites work out, they’re still in the money. But if a falling share of projects are working out — if building anything, anywhere, is getting harder, everywhere — then it might materialize as delays.
Plus more of the week’s big money moves in critical minerals and electric vehicle charging.
Two of climate tech’s hottest sectors — fusion and critical minerals — dominated this week’s funding headlines. Helion led the pack with its $465 million Series G, helping to push the startup with the sector’s most aggressive commercialization timeline one step closer to putting power on the grid. The round follows last week’s news that German fusion startup Focused Energy secured a $240 million Series A, making it Europe’s most valuable fusion company.
Then there’s the critical minerals. Shortly after venture firm Gigascale Capital announced the close of its $250 million fund targeting the physical clean energy economy, it announced one of its first investments: Red Metals, a startup working to bring copper refining back to the U.S. Terra AI, which is using artificial intelligence to identify promising sites for mineral extraction, also landed fresh funding. Rounding out the week’s deals, EV charging and energy services company InCharge also raised a new round as it looks to expand into a broader suite of energy services.
Leading fusion startup Helion has nearly tripled its valuation with its latest $465 million Series G round, which aims to help the company deliver commercial fusion power this decade — the most ambitious timeline in the industry. Per the terms of the power purchase agreement Helion signed with Microsoft in 2023, the startup plans to turn on its first commercial reactor just two years from now. That’s far sooner than even its most precocious competitors, who aim to put fusion power on the grid by the 2030s at the earliest.
Joshua Kushner’s venture firm Thrive Capital led the round, which also included participation from new investors including Lux Capital and Alta Park Capital. Thrive now values the company at $15.5 billion.
“The investors that have joined this round, it’s institutional capital, some very marquee investors,” Helion’s CEO David Kirtley told me, explaining they were willing to back an unproven technology thanks to a series of recent milestones that Helion’s latest prototype reactor, Polaris, achieved. “Polaris earlier this year set records for temperature and fuel. We’ve also reduced a lot of the business risk on the regulatory front, the commercial front, and the actual supply chain, too.” In February, Polaris became the first reactor developed by a private fusion company to operate on deuterium-tritium fuel — the most common fuel in the industry — and to achieve a plasma temperature of 150 million degrees Celsius.
Helion differs from many of its peers pursuing more established reactor concepts such as tokamaks, stellarators, or laser-driven inertial confinement. Instead, Helion’s tech uses powerful magnets to collide and compress two fusion plasmas together, generating temperatures over 100 million degrees Celsius and triggering a fusion reaction. It then seeks to capture the electricity this reaction generates via electromagnetic induction — no steam turbine required — similar to the way regenerative braking works in an electric vehicle. If successful, the approach could enable smaller, more modular fusion reactors than conventional designs would.
While the company had originally aimed for Polaris to demonstrate electricity production from fusion in 2024, that date came and went with no new goal set. Kirtley told me that Helion remains on track to meet the terms of its agreement with Microsoft, however. The startup broke ground on its commercial reactor site last year in Malaga, Washington, where it already has access to a substation and grid interconnection from a dormant aluminum smelter. In addition to building out this facility, Helion also plans to use its new funding to boost production at its electrical component manufacturing plant in nearby Everett, which Kirtley said opened earlier this year.
As investors pour billions into artificial intelligence and the infrastructure supporting it, former Meta CTO Mike Schroepfer has raised an inaugural $250 million fund for his venture firm, Gigascale Capital, which is focused on the physical clean energy economy. This represents Gigascale’s first institutional fundraise since its founding in 2023; until now, the firm’s investments have come entirely out of Schroepfer’s own pocket.
The fund will target early-stage companies working in clean energy, grid infrastructure, critical minerals, and AI-enabled design and manufacturing, while reserving capital to continue backing its portfolio companies as they scale. Gigascale has already backed a number of big names in the space, including Commonwealth Fusion System, iron-air battery developer Form Energy, solid-state transformer company Heron Power, and clean baseload power startup Arbor Energy.
It’s also already begun investing out of this new fund, announcing this week that it led a $10 million seed round for critical minerals company Red Metals, which also included participation from JB Straubel, founder and CEO of the battery recycling company Redwood Materials. The company aims to help reshore copper refining in the U.S., and will use this fresh capital to support the development of a $70 million refining facility in Charleston, South Carolina. Red Metals says its process can convert copper scrap directly into a finished copper product, bypassing several of the costly and emissions-intensive intermediate steps typical of conventional refining.
The investment offers a window into the kinds of companies Schroepfer is most interested in — businesses that might lack the glamor of an AI startup but represent bipartisan opportunities to address core industrial bottlenecks. Copper, for example, is essential to all sorts of clean energy infrastructure, including transformers, power lines, and anode battery materials, but also critical for defense technologies such as radar systems and ammunition. Yet American copper production has been on the decline, with analysts projecting that the U.S. will face a refined copper shortage of over 2.5 million metric tons annually by 2035.
Sustainability-focused firm S2G Investments has been on a roll recently, announcing a $1 billion fund last month that aims to fill climate tech’s “missing middle” and backing Goshe Energy Storage with up to $40 million in strategic financing last week. Its latest move is leading a $46 million strategic investment round for InCharge Energy, an EV charging and distributed energy management company.
InCharge got its start installing and managing electric vehicle charging stations, and is now operating more than 30,000 assets across North America. Through its software platform and network of technicians, the company handles all monitoring, diagnostics, and on-the-ground repairs, taking on a charger’s full lifecycle to minimize downtime. With this new capital, InCharge plans to expand beyond EV charging and leverage its software and field service network in adjacent industries, including electrical infrastructure work such as panel upgrades and wiring repairs, as well as distributed energy resources like rooftop solar and battery storage systems.
“EV charging was the entry point, but our customers increasingly need help operating more complex energy infrastructure,” Rich Mohr, InCharge’s CEO said in a press release. “This investment from S2G accelerates our evolution into a full energy solutions provider and allows us to advance smarter technology and strengthen our service capabilities nationwide.”
It’s a hot week — nay a hot year, for critical minerals and subsurface exploration startups, especially for those pairing geology with artificial intelligence. AI-powered mineral exploration company KoBold Metals has raised about $1.2 billion to date, while geothermal exploration startup Zanskar has brought in about $220 million.
Now, another entrant is attracting investor attention. Terra AI has raised a $20 million Series A led by Khosla Ventures to help do it all — use AI to identify prospective sites for critical minerals mining, next-generation geothermal development, and permanent carbon sequestration.
Terra’s platform integrates vast geological and geophysical datasets to generate 3D subsurface models, as well as risk assessments that allow teams to evaluate a range of potential geologic scenarios. From there, the team can identify the best sites for exploratory drilling and thus reduce risk and uncertainty much sooner in the project’s lifecycle. The company even uses what it calls “geology reasoning agents” to help operators create their exploration plans, all with the goal of drastically reducing the notoriously long timeline between discovery and production, which can stretch to nearly two decades for many subsurface projects.
“Minerals sit at the center of every major technology and infrastructure transition, but today’s exploration results are not keeping pace with demand,” Terra’s CEO John Mern posted on LinkedIn. “Our mission is to advance the frontier of AI into the geosciences and help supply the metals and resources the next generation needs.”
One of the biggest fusion funding rounds of the year landed last week, and somehow much of the media — including me — missed it. German fusion startup Focused Energy raised a whopping $240 million Series A led by RWE, one of Germany’s largest energy companies. Yet unlike most deals of this magnitude, it arrived with little fanfare: No press release in my inbox nor a flood of headlines. So in the interest of making up for lost time, here are the details.
With this latest round, which also includes participation from the German Federal Agency for Breakthrough Innovation, the European Innovation Council Fund and Prime Movers Lab, Focused Energy has become Europe’s most valuable fusion company. Like several other leading players, including Inertia Enterprises and Pacific Fusion, Focused Energy relies on an approach known as inertial confinement fusion. This involves using powerful lasers to compress a tiny fuel target, creating the extreme pressures and temperatures required for a fusion reaction. To date, inertial confinement remains the only approach to have demonstrated net energy gain, with Lawrence Livermore National Lab achieving this milestone in 2022.
The startup plans to use this latest funding to build out a demonstration plant in the German state of Hesse, at a site where RWE formerly operated a nuclear fission plant. The company ultimately aims to build a commercial reactor by the mid-2030s.