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How a panther habitat became a battleground for the state’s environmental groups

About 27 miles inland from Florida’s southwestern coast sit three empty swaths of land among a sea of green. This undeveloped area represents both the future of Florida’s development and the culmination of a 20 year fight between the state’s environmentalists.
“What happens here will change the face of Collier County forever,” April Olson, a researcher at the Conservancy of Southwest Florida, told me.
Home to affluent Naples and its fast-growing population of retirees, the county recently approved plans for four new villages to be built in one of Florida’s last undeveloped areas, which is sandwiched between some of the state’s biggest and most important nature reserves. The region hasn’t enjoyed official protection, per se, but it has enjoyed a special status. But with almost half a million people having moved to Florida just last year, and more on the way, the county of 300,000 inhabitants and counting has decided to keep building.
Yet if this sounds like a typical story of developers versus environmentalists, it isn’t. Instead, it has become a unique point of tension among environmental groups in Florida. While one group believes it’s their responsibility to be a part of this conversation and help manage unavoidable development, the other side believes it’s their role to fight against it.
“I’m very surprised environmentalists are taking this pragmatic approach,” said Matthew Schwartz, executive director of the South Florida Wildlands Association. “This isn’t what environmentalists do.”
The result is a rift among the guardians of Florida’s wildlife.
The environmentalists all agree on what they’re trying to protect: the panthers. From a conservation perspective, the region has acted as a corridor for the state’s remaining endangered panthers, of which there are only 120-230 adults left in the wild, to travel.
The area is surrounded by protected nature reserves. To the north is a complex of wildlife, bird sanctuaries, and wetlands; to the northeast are two different wildlife management areas, and to the south is the Florida panther national wildlife refuge, another wildlife management area that is home to bears, a state forest, a state preserve, and a national preserve that ultimately extends into the Everglades.
“This area is a mosaic of habitat types that allows the panther to live,” said Schwartz. “What they are doing essentially fragmented those complexes from one another.”
But to understand how the area has become a battleground of environmentalist groups, you’ll first have to dive into the area’s weird regulatory history.
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The villages being constructed amid this remarkably untouched land are the most recent outcome of a partnership between developers, land owners, and environmental groups. Called the Rural Lands Stewardship Area (RLSA) program, this partnership changed zoning over 20 years ago to allow for more dense development in exchange for environmental protections.
“At the end of the day, the RLSA is a compromise,” said Meredith Budd, who worked on this project when she was a policy director at the Florida Wildlife Federation. (She is now the director of external affairs for the Live Wildly Foundation.)
The RLSA was born way back in 1999, when then-Florida Governor Jeb Bush put a moratorium on development in Collier County. He claimed that urban sprawl in Naples, the state’s fastest growing city at the time, had gotten out of hand and that everyone needed to figure out a better solution for development that preserved agricultural lands and protected the environment.
When the RLSA was first discussed and proposed in 2002, most environmentalist groups, including the Conservancy of Southwest Florida, were on board. The battle that has emerged among these groups has its roots in some imprecise wording from the original proposal that almost tripled the amount of land that developers could build on.
The total area was — and still is — about 198,000 acres. Just over half of the acreage is protected nature reserves, with the rest mostly agricultural land available for development. But there’s a catch. Prior to the RLSA, the zoning only allowed for a single house, called a “ranchette,” to be built every five acres on the developable land. While some of these solitary homes exist today on farms, the majority of the area is still uninhabited, therefore serving as a wildlife corridor as well as porous land to absorb heavy rainfall or storm surges.
That’s where the RLSA was supposed to come in. Published in 2002, it proposed to change the allotment, swapping denser housing for more protected land. It indicated that 16,805 acres of the 98,000 available could be built on if developers earned allowances by restoring other land, although what would count as restoration was a little hazy. The language around these numbers was also very vague, critically leaving room to increase the amount of credits able to be earned and, subsequently, the acres developed. It ultimately increased the amount of land up for development to 45,000 acres. Many of the conservancies didn’t realize this change until the five-year review in 2007.
“We were supportive of RLSA,” said Olson. “But we believe the goals are not being met. The public was promised that 16,000 acres would be developed and that 91% of the area would be preserved.”
But those working with the RLSA think what’s done is done. “There’s no point in going back and figuring out what happened,” said Budd. “The allowable footprint is over 40,000 acres. We have to move forward and figure out whether wildlife connections can be made.”
The intent of the 1999 moratorium was to curb development for the benefit of conservation. The RLSA is still attempting to do that, but it’s a voluntary program, and much of the power lies with the landowners.
But in the past few years, Florida’s real estate market has boomed and land use planning regulations have been weakened. This combination made landowners restless to start building, more able to do so, and more impatient when it comes to making concessions to conservationists. Pro-RLSA environmentalists say playing hardball in negotiations with developers just won’t fly anymore.
“These organizations trying to save habitat by killing these programs aren’t helping, they’re making it worse,” said Elizabeth Fleming, a representative at Defenders of Wildlife, which supports the RLSA.
The four new villages, which are cumulatively known as “The Town of Big Cypress,” are only the most recent developments in the RLSA. The first, called Ave Maria, began building in 2005 but construction paused for a while after the recession. Big Cypress is one of the first cohesive plans out of the RLSA to keep building since then, but six more are in development. Though not nearly finished yet, the website for the Town of Big Cypress promises to fulfill all the expectations of the American dream. “Families strolling along storefronts with ice cream cones in hand … on-street parking for easy access to the hair salon, dog groomer, dry cleaner, and local grocer,” the website says. It promises happiness, community, convenience — even good weather and “responsible growth.”.
Today, both sides agree that no development would be the best way forward. “In a perfect world, I would love to see no more of it developed,” said Budd. “If I was Queen, I would say you no longer have property rights.”
Bradley Cornell, policy associate at the Audubon Society of the Western Everglades, helped make the RLSA a reality. “I’d much rather build a wall at the Georgia line and tell everyone to go home,” he said. “But we’re expected to get another 15 million people in Florida over the next 50 years. All of these people are moving to Florida. Where in the hell are we going to put them without ruining Florida’s nature?”
Between July 2021 and 2022, 444,500 people moved to Florida, according to the Tampa Bay Economic Council. Despite the increase in hurricanes and flooding and the decrease in affordable insurance, Florida is more popular than it has ever been.
Those in favor of the RLSA say that development is going to happen with or without them, and the RLSA allows them a platform to negotiate. “This is the best compromise we could have gotten,” Cornell said.
The primary benefit of the RLSA is that it offers a chance at higher density living with a potentially smaller ecological footprint. The pro-RLSA group, for example, has kept some developments from further encroaching on panther habitat. These conservationists have negotiated underpasses and fencing in three different areas to allow panthers and wildlife to cross roads without getting hit. They have also gotten the county to require bear proof trash cans, lowering lights to avoid light pollution, and smoke easements, which require new tenants to sign off on necessary controlled burns to maintain the environment for the panther preserve. From the Town of Big Cypress alone, the RLSA crediting system requires the developers to permanently preserve 12,000 acres. In this case, they will be restoring the hydrology of a major wetland nearby, according to Cornell.
“We’re just trying to have a seat at the table and ensure that we can get the best conservation outcomes knowing that the landowners have the rights to this land and are permitted to do whatever they want,” said Fleming.
The pro-RLSAers also pushed for more protections than they got. For 10 years, they fought for a Habitat Conservation Plan (HCP) that would have legally bound the landowners to certain conservation requirements, according to Budd. But pushback from the anti-RLSA groups slowed the process so much that eventually it wasn’t worth the landowners’ time and it was withdrawn in August 2022. Those against the RLSA had many qualms with the HCP and don’t see its withdrawal as a loss.
The other arguments against the RLSA are plentiful.
The anti-RLSA group contends that any development will harm the panthers. “This project would be the nail in the coffin of the panthers,” said Olson.
This side of the debate also thinks that the zoning rules that predated the RLSA, which previously allowed for ranchettes every five acres, were highly unlikely to practically result in development. They argue that implementing the road infrastructure required for such scattered housing would be prohibitively expensive, suggesting that if the RLSA hadn’t been proposed, this area would have been left untouched.
“It’s highly unlikely that they would come in and build five-acre ranchettes,” said Olson. “They would need thousands of miles of new roads. One new 100 mile road was calculated to cost $111 million in 2015.”
Schwartz agreed. “This is completely unpopulated, undeveloped rural land,” he said. “People don’t want to buy a swath of rural land and move into undeveloped lands.”
But pro-RLSA environmentalists think that perspective is naive. “That’s a false argument,” says Fleming. “It’s based in no reality. People are moving here and that area is the least expensive if you want to be near Naples. I see no reason why that wouldn’t continue.”
Budd added that money is not a concern in this area. “Collier County is one of the highest wealth points in the state, if not the whole country,” she said. “So to say this would be too expensive is unreasonable.”
Another area in between Naples and the RLSA, called Golden Gate Boulevard, had the same one-in-five zoning restrictions as the RLSA and has been heavily developed in the last 10 years.
The RLSA plan also does not seem to be taking the changing climate into account. According to Olson, 96% of Collier County is susceptible to storm surge. The inland parts aren’t as vulnerable, but there is still a high threat and the area’s porosity would be lost with these developments. In addition, the RLSA will experience 109 days where the heat index is above 100 degrees Fahrenheit in 2023, and 138 in 2053, according to The Washington Post’s interactive map on heat waves.
County Commissioner Bill McDaniel said that climate change was not a concern in the process of developing The Town of Big Cypress. “There are no stipulations with regard to climate change because it’s such a nebulous discussion point,” he said.
Though the commissioner agreed that many climate-friendly technologies are comparable, if not less expensive to purchase and maintain, the RLSA does not require developers to install permeable concrete, heat pumps, special shade trees for temperature, or solar panels on the houses.
“We recommended numerous policies that would encourage more energy efficient homes and appliances, improve permeability of sidewalks, require complete street designs that all users can use, ease traffic congestion, increase Florida friendly plants that require less water, include stipulations for storm water runoff, etc.” said Olson. “They just ignored it. I have not once heard the County even discuss heat issues or climate issues.”
Budd said that the choice to build inland in itself is a climate-conscious decision. “When looking at this long term and the threats of climate change, the main threat is that people will be moving inland,” she said. “Where we put the development is the most important thing.”
One of the biggest landowners in the area, named for the county’s namesake, Collier Enterprises, echoed Budd’s sentiment in emailed responses. “The Town of Big Cypress is 19 miles from the coast, similar to Babcock Ranch, which did not sustain damage from the recent Hurricane Ian, having one of the largest reported storm surges ever recorded.” He added that most of the national buildings in the area provide options for energy efficiency and smart home technology
Though both sides have very different ideas of how to be involved in development, they are both aware that development is coming to Eastern Collier County and share the same ultimate desires for the region.
“We do know that the RLSA is going to grow,” said Olson. “We know that Collier County is going to grow. We just think it could be done more sustainably.”
Environmentalists everywhere are grappling with how to best save the last bastion of the lands and animals that sustain us. Depending on which side you take in the RLSA fight, it has become a question of cynicism versus hope or pragmatism versus pipe dreams.
Those against the RLSA are still championing its original goal: to preserve the environment and to curb excessive development. “The goal of the program wasn’t to allow each and every landowner to maximize their profit to the greatest extent,” said Nicole Johnson, Director of Governmental Relations at the Conservancy of Southwest Florida.
The other side has committed to pragmatism. “At the end of the day, the dollar speaks,” said Budd. “And unfortunately it speaks louder than the voices against the project.”
As regulations recede in Florida, the RLSA disagreement signals a philosophical choice environmentalists will increasingly have to make: If we can’t beat them, should we join them?
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The former ExxonMobil CEO left his legacy both on the Earth and in the sky.
Lee Raymond, the former ExxonMobil chief executive who became one of the country’s most important and influential climate science deniers, died in Dallas on Saturday. His death was announced today.
Raymond would probably count as a world-historic figure even if viewed only through the lens of the fossil fuel business. As Exxon’s chief executive, he personally negotiated the company’s merger with Mobil, creating the modern oil and gas juggernaut ExxonMobil in 2000 — and uniting two major pieces of the old Standard Oil monopoly. He ran Exxon from 1993 to 1999, and then ExxonMobil until 2005, at a crucial period in the history of that company, turning it from a diversified conglomerate that sold office furniture, real estate, and uranium fuel into a streamlined and exorbitantly profitable oil and gas business. Even before taking over the company, he managed its response to the disastrous Exxon Valdez oil spill; he later oversaw a worker safety push that would be widely copied by the industry.
In a way, he transformed Exxon from a company that was itself a portfolio — that distinguished itself via managerial competence across business lines — into a ruthlessly focused oil and gas supermajor meant to sit inside other people’s portfolios and churn out cash. Under his leadership, ExxonMobil became the world’s most profitable publicly traded company; it later lost that title to Apple.
Yet even if Raymond had merely played a bit part in the history of oil and gas, he would remain essential to the modern ordeal of climate change. Today, people throw around the “climate change denier” label often enough that it has lost some of its charge. But Raymond was the genuine article, a true villain. It was Raymond who turned ExxonMobil into one of the world’s most important funders of falsehood and denial about fundamental climate science research.
Raymond, an engineer by training, straightforwardly rejected the mainstream scientific consensus that carbon dioxide emissions from fossil fuels cause climate change. Even though Exxon’s in-house climate research arm knew by the late 1970s that “there is no doubt” fossil fuels worsened the “potential problem of CO2 in the atmosphere,” Raymond did everything he could to elevate more industry-friendly perspectives. And he was willing to muddy the truth to win.
Under Raymond’s leadership, Exxon spent millions of dollars funding a shadowy network of think tanks and pseudo-scientific groups who published memos, briefings, and advertisements meant to cast doubt on climate change. As the journalist Steve Coll wrote in his book Private Empire,
Under Lee Raymond, ExxonMobil had persistently funded a public policy campaign in Washington and elsewhere that was transparently designed to raise public skepticism about the science that identified fossil fuels as a cause of global warming. ExxonMobil ran some aspects of its campaign clandestinely; that is, it did not initially disclose the full scope and purpose of contributions it made. […] What distinguished the corporation's activity during the late 1990s and the first Bush term was the way it crossed into disinformation.
In his capacity as CEO, Raymond made it clear that he personally rejected bedrock science. “Is the Earth really warming? Does burning fossil fuels cause global warming? And do we now have a reasonable scientific basis for predicting future temperature?,” he asked rhetorically during a 1997 meeting of the World Petroleum Congress in Beijing.
He answered all three questions in the negative, concluding, “Let’s agree there’s a lot we really don't know about how climate will change in the 21st century and beyond.” (In fact, we now know that even ExxonMobil’s primitive in-house climate models, then 20 years old, basically got global warming right.) He also claimed — we now know incorrectly — that any policy passed in the 1990s would be “very unlikely” to affect the future trajectory of mid-21st-century emissions declines.
The campaign worked. Exxon’s activism during this period, conducted sub and supra rosa, helped prevent the passage of major global and domestic climate policy in the 1990s; it also kept the United States from developing expertise in the solar, wind, and battery industries that other countries now dominate.
One of the ironies of this era is that much of modern climate science is derived from oil geology. You cannot grasp the all-important role that carbon plays in the Earth system — the way it has functioned as the thermostat for Earth’s climate over the long run — without a rich understanding of what the fossil record tells us about the Permian, Carboniferous, or the Upper Jurassic periods.
Take the Permian, for instance: When it began 299 million years ago, the Earth was relatively cool, with atmospheric CO2 levels somewhere around 200 to 400 parts per million. But soon enormous volcanoes ignited subterranean stores of fossil fuels, dumping thousands of gigatons of carbon into the atmosphere and initiating an era of rapid global warming and ocean acidification. When the Permian ended 252 million years ago in the largest mass extinction in Earth’s history — an annihilation that climate scientists call “the Great Dying” — atmospheric CO2 was closer to 2,500 parts per million.
When Lee Raymond was born in South Dakota in 1938, the atmosphere’s CO2 concentration sat at about 311 parts per million. When he died last week, it read 421 parts per million. Look at it this way, I suppose: Many people would feel captive to a change of that magnitude. But Raymond did something about it.
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 clean power and carbon removal 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 technology 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 Hartwig, 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.”
Editor’s note: This story has been updated to correct the description of Arbor Energy.