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To do it right, you’re going to need a building science pro.

When Zara Bode, a musician from Brooklyn, New York, first walked into the old seven-bedroom Victorian in downtown Brattleboro, Vermont, it just felt right. Her husband, also a traveling musician, had grown up nearby. “You walk in this house and you’re like, oh, there’s a good vibe,” she told me. Since the 1890s, when it was built, it had been a community health center and a food co-op, before being lovingly restored by the older woman who sold it to Bode and her husband in January of 2020. Bode hoped to make it their forever home, a place for friends and family to gather.
Within a month of moving in, she and her husband both lost their incomes in the pandemic. Then they made a brutal discovery: the house was ruinously expensive to heat.
They spent all their time huddled in the kitchen with their two young children in front of the wood burning cookstove and kept the thermostat at 65. Even so, they were running through a full tank of oil every nine days. Each delivery cost more than $1,000, adding up to twice their mortgage every month. They had to ask for government emergency assistance.
Bode started asking around to other families, who told her about a state-funded program that gives out 0% weatherization loans with deferred repayment to low-income families. She got quotes from two different reputable companies, each of which proposed using polyurethane spray foam insulation in the large basement. The buzz in the community was that spray foam is a miracle product — so incredibly insulating that it would cut their heating oil needs down by two-thirds or or more. But Bode was protective of the old Victorian. “I knew it was lucky for us to get this house in the first place. We don’t have the money to make mistakes,” she says.
Without any outside expert to turn to, desperate for relief, and grateful for Vermont’s robust social safety net, she went for it.
She would come to regret it.
To hit its climate goals, the U.S. is going to have to upgrade its old housing stock. Residential energy use accounts for about 20% of U.S. carbon emissions, and the lion’s share of that energy is used to heat and cool homes. At the same time, low-income families are struggling more than ever to shoulder the financial burden of doing that. In 2023, the number of American families needing assistance jumped by 1.3 million to over 6 million.
The Inflation Reduction Act is aiming to tackle these twin crises, with a tax credit covering 30% of the cost of insulation and air-sealing materials, up to $1,200 annually per household. So far only New York has an active IRA-funded home rebate program, but more states have applied to start handing out funds to homeowners over the next year, which should also help shield Americans from the health effects of extreme temperatures.
The problem is, insulating an old home is a delicate and complex process. Improper installation can lead to mold, dry rot in your home’s framing and roof, and poor indoor air quality that can make you sick.
“It’s potentially a huge problem,” Francis Offerman, a.k.a. Bud, an industrial hygienist who does indoor air quality testing for homeowners (and lawyers) who suspect a house or apartment is making its inhabitants ill, told me. “Especially if your mindset is, we’re going to just spray foam the home, and that’s it.”
Bode reached out to me last year after she read my viral story for VT Digger, which raised the alarm about the risks of spray foam insulation in particular. (Though experts say any insulation done badly can cause problems.) She and her family had vacated their Victorian for a few days in early 2021 while the basement was spray foam insulated. When they moved back in, Bode was struck by the bad paint smell. That eventually went away, and oil deliveries dropped from every nine days to every three weeks.
But then she realized the basement, which used to be bone dry, was now damp all the time. She bought two industrial dehumidifiers that run constantly, and still the smell of mildew wafts up through the floorboards. Bode has allergies to mold and mildew and worries the bad air quality could affect her kids, who also have allergies and asthma. She’s had to move all her furniture and art out of the basement lest it get damaged.
When she saw my article, she felt a mix of emotions. On the one hand, after having her concerns dismissed by the insulation company, she finally felt validated. “That was the first time that I had heard about air exchangers and other things I can’t afford,” Bode told me about reading my article. But she wondered, “Did I ruin a house that’s been standing strong for 140 years?”
The kind of person that could have advised Bode on how to safely insulate her historic home would be someone trained in building science — that is, someone educated in the physics of buildings, who can identify moisture issues and air leaks, recommend appropriate materials and HVAC solutions, and give you a step-by-step plan for implementing them so your home stays healthy and whole.
Unfortunately, many insulation companies, architects, and contractors have either never heard of or are actively hostile to these concepts, which they see as expensive, unnecessary, overly complicated, and (in the case of many spray foam contractors) an impediment to making the sale.
“In the grand scheme of things, building science is a relatively new field,” Eric Werling, who recently retired after 30 years of directing the U.S. Department of Energy’s Building America program to run his own consulting business, told me. “People have studied structural engineering for thousands of years. But air-tightening buildings is a relatively new phenomenon.”
Up until the 1970s, people in the U.S. didn’t think much about insulation. Then the energy crisis struck, and oil shortages caused prices to skyrocket. President Jimmy Carter told Americans to put on a sweater and turn down the thermostat. Letting all that expensive energy flow outside suddenly seemed like a waste of money.
The Department of Energy launched its Weatherization Assistance Program in 1976 for low-income families and created efficiency standards for commercial buildings that relied on the new, synthetic materials that had emerged after WWII. The problem was, as homes and commercial buildings were sealed, a lot of people got sick. The most high profile cases were cancer from chronic radon exposure or quiet but shocking deaths from carbon monoxide poisoning. But there also emerged the autoimmune-adjacent condition called Sick Building Syndrome, a constellation of symptoms related to breathing in VOCs from furniture, carpeting, pesticides, and cleaning products circulating inside a tight building.
“The Department of Energy… screwed it up a lot at the very beginning,” Joe Lstiburek, a longtime building science consultant, told me. But the DOE started training its weatherization crews, establishing standards for proper insulation, and providing additional funding for safety measures, including mechanical ventilation. “America became a world leader at figuring out how not to rot houses and how not to kill people,” Lstiburek said.
Today, indoor air quality in the workplace has dramatically improved. Aspects of building science have been codified in residential homes as well, with some states requiring that new builds with a tight air seal include mechanical ventilation. But nobody I talked to could point to similar requirements for an existing home that has been retrofitted with insulation. And when I asked Lstiburek if low-income renters and homeowners have access to building science information and advice, he said, “No, they do not.”
According to Werling, there are still probably fewer than a thousand building science experts, and many are eyeing retirement. “Their teachings have impacted thousands –– probably hundreds of thousands –– of people in the construction industry.” He points to New York and Wisconsin as two states that have had robust contractor training programs for the longest. But he admits that’s still a small percentage of the millions of people involved in construction in the U.S.
“There are just too many companies with people who don’t know enough about the issues regarding moisture doing whatever they want and leaving the homeowner with the bill,” Chris West, a Vermont-based certified consultant and trainer for Passive House, a design standard for ultra-low-energy-consumption homes, told me. “Often these companies have some kind of caveat in their contract that makes the owner responsible for any future issues.”
To make things worse, our homes are more delicate today. New building construction has largely switched from rot- and mold-resistant materials such as hardwood and plaster to cheaper manufactured mold-prone materials like plywood and drywall.
“Green” or “eco” home programs that advise homeowners focus solely on energy efficiency, and tightened energy codes are requiring ever more robust insulation without taking into account existing moisture problems (such as a wet basement or unventilated bathroom), which are not rare. NIOSH estimates about half of all homes have some sort of moisture or mold issue. Residential contractors, architects, and developers, meanwhile, are largely free to ignore building science concepts and go about their business doing things the way they’ve always been done. And there doesn’t seem to be a good plan in place to upskill contractors for this next weatherization push or protect consumers from shoddy workmanship.
“There isn’t an educational track that’s indoor air quality in universities or colleges,” Offerman told me. “I’m 71 now. I’m gonna retire eventually, and where are the replacements?”
I’ve talked to several homeowners who have been burned by bad insulation jobs, and every one expressed dismay that contractors aren’t required to at least share the potential risks or downsides of getting your home weatherized. For example, homeowners may have to install mechanical ventilation at an extra cost of a few thousand dollars, and spray foam, as opposed to traditional batting insulation, is permanent and all but impossible to remediate or take out.
This information is largely hidden from consumers, even savvy ones like me. I was pitched spray foam by an energy auditor for my own old farmhouse, and I had to go out and interview a half dozen experts for an article and pay $1,000 to West to drive two hours down to audit our house (again) and come up with an alternative plan I was comfortable with.
Werling doesn’t want homeowners to be scared away from weatherizing their homes. “In the vast majority of cases, homeowners are better off when they insulate and air-seal their homes,” he said, “but it’s important to be aware that the house is a complicated system of parts. Hire the right contractor to help avoid potentially costly problems down the road.” He points to the Home Improvement Expert section of the Building America Solution Center from the U.S. Department of Energy, which has detailed checklists you can go over with your contractor to ensure the work is done properly. West suggests homeowners find a certified consultant at Passive House Institute US.
The building science experts I spoke to suggested things like an educational program for consumers so they know to ask about ventilation, third party inspections before and after weatherization projects with the results entered into the public record, pre-sale energy audits, and mandatory building science training for contractors and their crews. Offerman said weatherization programs should hold installers accountable for insulating and ventilating according to the latest building science standards as a condition of receiving funds.
The question is how many homeowners like Zara will have their homes and health damaged before the situation is addressed. “It’s not that we don’t know that this is happening,” Listiburek says. “It’s that it’s not painful enough yet.”
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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.