SpaceX’s IPO Filing Reveals Musk’s Clean Energy Contradiction
xAI burns gas while Tesla sells solar.
May 23, 2026 – 2:54 pm
Image by: Trevor Cokley
TL;DR
xAI powers its data centers with unregulated gas turbines, while SpaceX pitches space-based solar power in its IPO. Tesla’s solar business is largely ignored.
The SpaceX IPO prospectus reveals a vision for terawatt-scale space-based solar power, but also highlights a contradiction: Elon Musk’s AI company, xAI, operates on natural gas turbines, with plans to buy $2.8 billion more. This stands in stark contrast to Tesla’s commitment to eliminating fossil fuels.
Tesla’s Master Plans over the years have consistently emphasized electrification and moving away from hydrocarbon economies. Yet, xAI’s reliance on unregulated gas turbines for its data centers is a significant shift. The filing indicates a long-term commitment to this infrastructure, securing fossil fuel dependence within xAI’s operations.
Musk’s Companies: Interconnected but Divergent
Musk’s companies often transact with one another—SpaceX spent $131 million on Cybertrucks, and xAI has purchased Tesla Megapacks for its data centers. However, there’s been minimal solar panel procurement from Tesla Energy, the division dedicated to deploying solar technology once hailed as foundational to the future economy.
The SpaceX filing mentions space-based solar arrays as a viable option, arguing they can generate five times more energy than terrestrial alternatives due to constant sunlight. This idea has gained traction with Musk and executives, who propose using Starship—a program costing over $15 billion—to make it economically feasible.
Challenges in Space Solar Economics
As TechCrunch’s Tim De Chant points out, the economics of space solar are challenging. Power prices for Starlink satellites are already high, making the proposition less appealing compared to traditional data centers.