xAI powers its data centres with unregulated gas turbines while SpaceX’s IPO pitches space-based solar. Tesla’s solar business is ignored.
The SpaceX IPO prospectus, filed on Wednesday, contains a vision for terawatt-scale space-based solar power. It also reveals, through what it does not say, that Elon Musk’s AI company xAI is running its data centres on unregulated natural gas turbines, with plans to buy $2.8 billion more. Tesla, the company Musk built on the promise of eliminating fossil fuels, barely features as a power supplier. The contradiction is now a matter of SEC record.
Tesla has released four Master Plans over the years. The through line has been consistent: electrification of the economy. In 2006, Musk described Tesla’s “overarching purpose” as helping “expedite the move from a mine-and-burn hydrocarbon economy towards a solar electric economy.” Just three years ago, Tesla’s Master Plan Part 3 outlined a detailed path to eliminate fossil fuels entirely. The document was rigorous, optimistic, and specific about the role of terrestrial solar, battery storage, and electrified transport in decarbonising the global economy.
Then xAI arrived. The AI company, which merged with SpaceX in February at a combined $1.25 trillion valuation, has embraced the mine-and-burn economy that Tesla was founded to replace. Dozens of unregulated natural gas turbines power xAI’s data centres in Memphis, Tennessee. The $2.8 billion in additional gas turbine purchases disclosed in the filing is not a temporary measure with an expiration date. It is a capital commitment that cements fossil fuel infrastructure into xAI’s operations for years.
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Musk’s companies are not strangers to buying from each other. SpaceX spent $131 million on 1,279 Cybertrucks. xAI has spent $697 million over the past two years on Tesla Megapacks, the grid-scale battery storage systems used to manage peak loads at its data centres. But xAI has not purchased a materially significant number of solar panels from Tesla Energy, the division that exists specifically to deploy the technology Musk once described as the foundation of the future economy.
The SpaceX filing does mention solar, but only in the context of space. The company argues that space-based solar arrays can generate “more than five times the energy” of terrestrial ones thanks to continuous illumination. As AI data centres have encountered opposition on Earth, from neighbours, regulators, and grid operators, Musk and other executives have begun floating the idea of operating server racks in orbit, powered by 24/7 sunshine. SpaceX’s Starship programme, which has cost more than $15 billion to date, is positioned as the launch vehicle that could make this economically viable.
The economics, as TechCrunch’s Tim De Chant notes, are challenging at best. Power prices for Starlink satellites are already multiples higher than what a terrestrial data centre typically spends. Protecting AI chips from radiation, thermal cycling, and micrometeorites in orbit adds cost that does not exist on the ground. It is also unclear whether AI training workloads can be distributed across multiple satellites, which would leave a significant portion of the most compute-intensive AI work earthbound regardless of how cheap launches become. Shipping solar panels on a flatbed truck uses less energy than sending them into orbit.
The filing contains a more revealing claim. SpaceX argues that “third-party estimates on data centre demand are constrained by the practical supply limitations that exist in a terrestrial context and the power shortage may be far greater than what research estimates suggest.” The company references “terawatt-scale annual AI compute growth,” a figure that would represent a transformative increase in global energy demand. Humanity currently uses approximately 4 terawatts on a continuous basis. All the world’s data centres together consume roughly 40 gigawatts. Musk is projecting that AI alone will require additions measured in terawatts, every year.
The SpaceX IPO, expected to raise $75 billion next month, will be priced partly on the strength of this vision. Investors are being asked to buy into a future where terrestrial energy infrastructure is fundamentally insufficient for AI demand, and SpaceX is the company that can solve the problem from space. It is a compelling narrative. It is also a narrative that conveniently excuses the fact that, right now, Musk’s AI company is burning natural gas instead of deploying the solar technology his other company manufactures.
The energy problem for AI data centres is real. OpenAI paused its Stargate UK project over industrial electricity costs that run at more than four times US rates. Global data centre power consumption is projected to reach 150 GW by 2030. The question is not whether AI will need more energy, but whether the answer is to build more terrestrial solar, which has fallen in cost by 90% over the past decade and can be deployed at scale today, or to wait for a technology that requires launching hardware into orbit on rockets that, as of Friday, still cannot land their boosters reliably.
Tesla’s solar and energy storage business generated $2.8 billion in revenue in Q1 2026 alone. The Megapack factory in Lathrop, California ships grid-scale batteries to utilities and industrial customers worldwide. Tesla Energy is, by any measure, one of the most successful clean energy companies on the planet. And yet its founder’s newest company chose gas turbines instead.
Enterprise AI spending is accelerating at extraordinary rates. Salesforce projects $300 million in Anthropic token spending this year. The compute infrastructure behind that spending requires energy, and the companies building it are making choices right now about where that energy comes from. Musk’s choice, for xAI, was fossil fuel. His justification, via SpaceX, is that something better is coming from space. The gap between those two positions is filled with natural gas, and the Master Plan that was supposed to eliminate it.
The three-pointed star on the hood of a Mercedes-Benz has always been associated with luxury and status. Yet as new-vehicle prices continue to climb to all-time highs, a shift has occurred in which mainstream brands are designing vehicles with powertrains, infotainment features, and interiors that rival those of established luxury manufacturers.
In some instances, mainstream brands have enhanced their value propositions for potential buyers by offering certain features as standard that may require an add-on package in a luxury vehicle.
If you are looking for a compact SUV that can fit seven people, there is really only one sheriff in town: the Mercedes-Benz GLB. Yet a certain outlaw (or Outlander) might be worthy of a potential showdown when it comes to SUVs that seat seven. It might seem odd, or even downright crazy, to compare a Mitsubishi and a Mercedes, but when you consider them side by side, the Outlander starts to look like a premium and luxury contender for less money.
Base Trim Engine
1.5L I4 Hybrid
Base Trim Transmission
2-speed CVT
Base Trim Drivetrain
Front-Wheel Drive
Customer feedback and filling the gap
Two different approaches to seven-seat utility
The Mitsubishi Outlander has a history as the “value-plus” choice for SUV buyers, but its 2022 redesign arguably placed it into a different category. As part of the redesign, the Outlander received a wider platform, resulting in a more spacious cabin.
Compared to prior years, it was clear that Mitsubishi had upgraded the Outlander’s interior, using materials and controls that elevated it beyond its value-plus reputation. Buyers benefited from a more premium driving experience, including a larger storage area in the armrest and more comfortable seats.
For the 2026 model year, the Outlander has undergone a mid-cycle refresh, one that included Mitsubishi addressing customer-specific feedback. Notable updates from the refresh include the addition of more sound-insulation material to reduce road and tire noise, and an updated mild-hybrid powertrain to improve efficiency.
Quiz
8 Questions · Test Your Knowledge
Mitsubishi Outlander Read on and test your knowledge
Think you know Mitsubishi’s popular SUV? Put your Outlander knowledge to the test.
HistoryPerformanceFeaturesDesignVariants
In what year did the Mitsubishi Outlander first go on sale?
Correct! The Mitsubishi Outlander was introduced for the 2003 model year, initially sold in Japan as the Airtrek before being renamed Outlander for global markets. It replaced the aging Mitsubishi RVR in the lineup.
Not quite. The Outlander first went on sale as a 2003 model year vehicle. It was originally known as the Airtrek in Japan before receiving the Outlander name for international markets.
What does the ‘PHEV’ stand for in the Mitsubishi Outlander PHEV?
Correct! PHEV stands for Plug-in Hybrid Electric Vehicle. The Outlander PHEV was launched in 2013 and became one of the world’s best-selling plug-in hybrid SUVs, praised for its ability to run on electric power alone for short distances.
Not quite. PHEV stands for Plug-in Hybrid Electric Vehicle. Launched in 2013, the Outlander PHEV was a groundbreaking model that allowed drivers to charge the battery from a wall outlet and travel short distances on electric power alone.
Which all-wheel-drive system does Mitsubishi use in the Outlander PHEV to distribute torque between front and rear axles?
Correct! Mitsubishi’s Super All Wheel Control, or S-AWC, is an advanced integrated vehicle dynamics control system used in the Outlander PHEV. It uses separate front and rear electric motors combined with braking control to optimize traction and handling.
Not quite. The correct answer is Super All Wheel Control, or S-AWC. This sophisticated system is a hallmark of Mitsubishi’s performance engineering, using electric motors on each axle along with braking input to deliver precise torque distribution.
What is the name of Mitsubishi’s signature front grille design language introduced on newer Outlander models?
Correct! The Dynamic Shield is Mitsubishi’s distinctive front-end design philosophy, first introduced on the 2014 Outlander Sport. It features a bold, protective-looking front fascia meant to convey strength and stability, and has since become a brand-wide design signature.
Not quite. The answer is Dynamic Shield. Mitsubishi introduced this front-end design language starting with the 2014 Outlander Sport, and it has since been applied across the model range to give Mitsubishi vehicles a bold, unified family look.
Which advanced driver assistance feature was offered on the Outlander as part of its MI-PILOT system?
Correct! MI-PILOT on the Mitsubishi Outlander combines adaptive cruise control with lane centering assist, helping reduce driver fatigue on highways. It uses a front camera and radar to maintain a set distance from the vehicle ahead while keeping the car centered in its lane.
Not quite. MI-PILOT provides adaptive cruise control combined with lane centering assist — not full autonomy or automatic lane changing. It is designed as a driver assistance tool to ease fatigue on long highway trips, not to replace the driver.
The fourth-generation Mitsubishi Outlander, launched in 2021, shares its platform with which other automaker’s SUV?
Correct! The fourth-generation Outlander, revealed in 2021, is built on the same CMF-CD platform as the Nissan Rogue. This is a result of the Renault-Nissan-Mitsubishi Alliance partnership, which allows member brands to share platforms and technology to reduce development costs.
Not quite. The 2021 fourth-generation Outlander shares its platform with the Nissan Rogue, thanks to the Renault-Nissan-Mitsubishi Alliance. Platform sharing is a key strategy of the alliance, helping all three brands save on engineering and manufacturing expenses.
What is the maximum seating capacity available in certain Mitsubishi Outlander configurations?
Correct! Certain Outlander trims offer optional third-row seating, bringing the total passenger capacity to seven. This made the Outlander one of the more versatile options in the compact SUV segment, bridging the gap between compact crossovers and larger three-row SUVs.
Not quite. The Mitsubishi Outlander can seat up to seven passengers in models equipped with the optional third-row seat. This was a notable selling point for families who needed extra space without stepping up to a full-size SUV.
What is the approximate all-electric range of the third-generation Mitsubishi Outlander PHEV on a full charge?
Correct! The third-generation Outlander PHEV offers approximately 22 miles (35 km) of all-electric range on a full charge. While this may seem modest compared to fully electric vehicles, it is enough for many daily commutes, and the petrol engine kicks in seamlessly for longer trips.
Not quite. The third-generation Outlander PHEV delivers around 22 miles (35 km) of pure electric range. Although it is not a long-range EV, Mitsubishi designed it to cover typical daily commutes on electricity alone, with the combustion engine available for extended journeys.
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By contrast, the Mercedes-Benz GLB was born out of an important, even if small, market gap. Mercedes noticed that while the subcompact GLA was popular, it was a bit too cramped for growing families. Meanwhile, the larger GLC featured a sloped roofline that looked sharp but sacrificed vertical cargo space.
To find a middle ground, Mercedes looked to its iconic G-Wagon for inspiration and created the GLB, an SUV that, in the spirit of lovable if not ugly Italian designs, maximizes every inch of its footprint. In essence, the Mercedes-Benz GLB was designed for people who wanted a maneuverable, city-friendly SUV with the “just in case” flexibility of seven seats.
The starting price gap
Nearly a $10,000 difference
One of the most immediate differences between the Outlander and the GLB is the monthly payment.
2026 Mitsubishi Outlander ES: Starts at $29,995 for front-wheel drive models.
2026 Mitsubishi Outlander ES S-AWC: Starts at $31,795 for all-wheel drive models (S-AWC is short for Mitsubishi’s Super-All Wheel Control system).
2027 Mercedes-Benz GLB: While U.S. pricing hasn’t been finalized, previous gas-powered models started near $40,000.
Base Trim Engine
1.5-liter Four-cylinder Hybrid
Base Trim Transmission
8-speed Dual-clutch Transmission
Base Trim Drivetrain
All-Wheel Drive
Hybrid powertrain comparisons
Highway fuel economy a factor for the Outlander
The Mitsubishi Outlander features a new 1.5-liter turbo engine paired with a 48-volt mild-hybrid system. This is the first mild-hybrid model Mitsubishi has offered in the U.S., designed to provide better efficiency and smoother off-the-line performance without the need for a charging station. Mitsubishi’s system delivers a combined 174 horsepower and 206 lb-ft. of torque.
If you live in an area where you don’t see snowfall, a front-wheel drive Outlander will likely suffice. In addition to saving money off the initial MSRP, the fuel cost of a front-wheel drive model versus an all-wheel drive model is something to consider. Although the EPA-estimated ratings in the city are the same for both, the highway fuel savings, although small, will eventually add up over time.
For the 2027 model year, there are two versions of the Mercedes-Benz GLB: an all-electric model and a hybrid, the latter of which would be the closest comparison to the Outlander.
The GLB hybrid variant features a new 1.5-liter turbocharged four-cylinder from the Mercedes-Benz FAME (Family of Modular Engines) lineup. Paired with a 48-volt mild-hybrid system, the turbo engine uses a combustion process based on the Miller cycle to maximize efficiency.
With new car prices at an all-time high, I’ve resolved to keep my current vehicle as long as possible.
Interior tech and comfort features
SEL Premium Package and Dolby Atmos
The biggest surprise might come when you jump inside both vehicles and see just how close the Outlander is to matching luxury establishment players.
Leaning into its newfound premium identity, the Outlander SEL is standard with leather seats, ventilated front seats, a heated steering wheel, and heated rear seats. The tri-zone automatic climate control system is also standard. Buyers who opt for the SEL Premium Package will have a unique brown semi-aniline leather interior with quilted door inserts.
Starting MSRP for the Outlander SEL with front-wheel drive is under $41,000, while all-wheel drive models are under $43,000.
Meanwhile, Mercedes-Benz has redesigned the GLB interior to include an optional MBUX Superscreen, which places the driver and central displays under a single glass surface. It is high-tech, but it is an upgrade that can quickly drive the price north.
Otherwise, for the 2027 model, Mercedes has swapped traditional leather for sustainable textiles inside the GLB. Comfort seats feature ARTICO leather with three-dimensional embossing, while the AMG Line uses microfiber made from 65% recycled materials.
The GLB is further enhanced by the available Burmester 3D audio system with Dolby Atmos and the Sky Control panoramic roof, which features 158 illuminated stars integrated into the glass.
Material
Oxford
Special Feature
Foldable
This 13.5-gallon trunk organizer features compartments to organize and store groceries, sports equipment, emergency supplies, and other daily essentials.
Cargo space and seating configurations
Outlander still holds a slight edge
Both of these SUVs are rare because they offer a third row despite their more compact footprints. The slight nuance here is that the Outlander is a three-row SUV seating seven, no matter what. The GLB is a five-seater by default, with the third row available as an option.
For the 2027 model year, the GLB has grown 3.9 inches longer than its predecessor, with a wheelbase that has expanded by 2.4 inches. This gives second-row passengers up to 39.7 inches of legroom.
However, when it comes to hauling groceries and gear, the Outlander still holds a slight edge in total volume. Here is how the cargo space compares:
2026 Mitsubishi Outlander:
Behind Third Row: 10.9 to 11.7 cubic feet.
Behind Second Row: 30.6 to 33.5 cubic feet.
Maximum Capacity: 64.3 to 64.7 cubic feet.
2027 Mercedes-Benz GLB (Seven-Seater):
Behind Third Row: 5.1 to 6.3 cubic feet.
Behind Second Row: 17 cubic feet.
Maximum Capacity: 56.7 cubic feet.
The Outlander’s wider platform allows for a higher maximum cargo capacity, which is a factor if you frequently fold the seats down for hardware store runs or camping gear.
Red carpet treatment, even if you buy something used.
Factory warranty coverage
Outlander offers a long warranty period
When it comes to factory warranty, this is where Mitsubishi distinguishes itself. Here is how the factory warranty programs look for both the Outlander and GLB:
Mitsubishi: Includes a 10-year/100,000-mile powertrain warranty, a five-year/60,000-mile bumper-to-bumper warranty, and a two-year/30,000-mile limited maintenance program.
Mercedes-Benz: Offers a standard four-year/50,000-mile warranty, with maintenance typically being an out-of-pocket expense or a separate prepaid plan.
While a Mercedes-Benz offers undeniable prestige, the Outlander provides a different kind of luxury: predictable ownership costs. For many families, the security of a decade-long warranty is more valuable than the badge on the grille.
The Outlander offers more than expected
If your goal is a family hauler that feels premium but is grounded in practicality, the 2026 Mitsubishi Outlander is a smart buy.
Although nothing can replace a Mercedes-Benz, when it comes to the Outlander and the GLB, the former offers a longer warranty and standard features that may require an optional package in a Mercedes-Benz. In a market where vehicle prices are reaching record highs, the Outlander proves that you don’t have to pay a premium price to get a premium experience.
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