The Five Things Keeping Us From Going All-Electric
The ‘electrification of everything’ gets talked about a lot these days. But it isn’t going to happen soon. Nor should we want it to.
The ‘electrification of everything’ gets talked about a lot these days. But it isn’t going to happen soon. Nor should we want it to.
Electrification is all the buzz.
As more governments, corporations, investors and consumers commit to reducing the world’s reliance on carbon-intensive fossil fuels, they are frequently turning to electricity as the power of choice. The International Renewable Energy Agency, an intergovernmental organisation, projects that close to half of world energy consumption could be in the form of electricity by 2050, up from about 20% today.
It makes sense: Electrification is often the fastest and cheapest way to decarbonise our energy consumption. The technologies to decarbonise electricity already exist and are, for the most part, readily deployable at a large scale by the private sector.
But here’s a sobering fact about all the talk of the “electrification of everything”: It isn’t likely to happen. At least, not soon. We can’t go all the way down the electrification road for a host of reasons—nor should we want to. For one thing, it would place unnecessary limitations on other viable solutions to rising greenhouse-gas emissions. It also ignores existing technical, regulatory and strategic constraints on electrification.
None of this is to say the world shouldn’t be shifting to new—and cleaner—electricity. And not just because of its role in fighting climate change. Among other things, electrification via renewable energy is playing a pivotal role in energy security for a variety of countries where oil and gas is scarce and expensive, and where volatile fuel prices threaten economic growth and fiscal stability. Clean energy helped Germany and other European countries cope with the loss of natural-gas imports from Russia last year. New clean energy is also helping key economies like China and India reduce air pollution.
But even with its environmental and strategic benefits, electrification won’t be the be-all and end-all for the foreseeable future.
Here are five reasons why:
There are a lot of industries that are too difficult or expensive to be electrified for the foreseeable future. Do you want to know why there is no major commercial airline currently operating electric long-distance flights? It’s because the battery weight needed to hold enough energy for a trans-Atlantic flight would be greater than that of the airliner itself.
The weight of the battery and driving range is also a barrier for electrifying 18-wheeler trucks, though that electrification technology is further along than that for large jets. Freightliner has a big rig called eCascadia, but its range is only 250 miles, recharging takes over 90 minutes, and the e-truck is two to three times more expensive than its diesel-fuel version.
That may change as the battery and charging-station technology develops. A new study by the Environmental Defense Fund says that long-distance battery electric trucks could be cost effective by 2030, but other solutions are also possible by then, such as hydrogen, waste-to-energy, biofuels and tailpipe capture. (More on that in a moment.)
High-heat industrial processes, such as those for blast furnaces, cement kilns and petrochemical plants, are another commercial activity that will be hard to electrify, because electric high heat can be challenging and expensive for some industrial applications.
One key problem is that any unplanned downtime or fluctuation in temperature levels—caused by electrical fluctuations or disruptions from weather, accidents or a failed circuit breaker—not only can ruin the end product but also possibly damage billions of dollars of industrial equipment. While that scenario can be averted with automated backup energy systems, as is done routinely for nuclear plants to prevent a meltdown, it’s still an expensive add-on cost.

Electric power doesn’t have a monopoly on innovation. As a result, it could be risky for some industries to invest in some electrical solutions at the moment, knowing there might be a superior, cheaper technical solution down the road. Alternatives such as biofuels, hydrogen or biogas and fossil fuels with carbon sequestration offer the potential to be superior sources of power.
For instance, Remora, a startup based in Wixom, Mich., is designing a device that can collect tailpipe CO2 directly while a truck is in operation, compressing it for later sequestration or sale. Several airlines have started to use jet fuel made from purified biogenic waste that can be mixed with oil-based diesel fuel—so-called drop-in fuels that don’t require special or new fuel-transport infrastructure. Hydrogen made from renewable energy also could eventually be a solution for fueling planes and trucks.
Heidelberg Materials, a global manufacturer of building materials, is studying carbon capture and storage for its Mitchell, Ind., operations that would allow it to continue to use a fossil-fuel energy source while adding equipment that would separate CO2 emissions from other waste gases before, during and/or after combustion activities. Heidelberg would then transport its waste CO2 to be permanently injected into deep geological storage or to be reused making other products in a way that it doesn’t wind up back in the atmosphere.
These examples have the advantage of using existing energy infrastructure rather than retiring it before its end-of-life service.
Yes, there is plenty of uninhabited land in many countries, and especially in the U.S. But uninhabited doesn’t always spell accessibility.
For one thing, in highly urbanised regions or densely populated countries, it can be difficult to find sufficient empty land to support alternative-fuel installations. Around the world, in places as diverse as India and Africa, renewable-energy developers often have trouble getting permits to buy or lease the necessary acreage. And in many areas, including the U.S., local populations can object to living near wind and solar farms, or near the power transmission and distribution lines that they require.
Consider this: It would take a wind farm on about 100,000 acres to generate the same amount of electricity as a one-gigawatt nuclear plant that typically occupies less than 1 square mile, or 640 acres. Princeton University estimates in a high-renewable-energy scenario, where solar and wind would account for virtually all electricity generation for the U.S. in 2050, the number of wind turbines would require roughly 244 million acres of uninhabited land—even assuming efficiency improvements. The current U.S. electrical system only uses about 20 million acres for the power generation business, including fuel-source production (e.g., coal, natural gas, solar, wind, nuclear and hydro), and power plants. Today’s power lines take up 4.8 million acres in the U.S., but that could increase sharply the more renewables that are added.

For a small country like Japan, that renewables-footprint requirement seems insurmountable, even if its nascent offshore wind business gets off the ground. But even for a large nation like the U.S., construction of wind and solar farms often gets held up by groups who want to use the land (or sea) for something else. In the entire U.S., there are two small offshore wind platforms currently in operation, with a third, larger one, nearing completion. The Biden administration is trying to change that at the federal level, but local factors are often hard to sort out.
Moreover, all that uninhabited U.S. land isn’t necessarily contiguous with large energy-using metropolitan regions or located where the most commercial-scale resource of renewable energy is available. For instance, many large U.S. cities aren’t contiguous with Midwest or offshore wind resources or Southwest solar.
Since the energy resource used for electricity generation often isn’t located in populated areas, that means more transmission lines will be needed, and more lines means more permitting, which can be a time-consuming, multiyear process.
In addition to potentially requiring new transmission lines, new renewable projects also have to receive technical approval to be allowed to connect into existing grids to prove that adding more electricity won’t destabilise existing service. Again, that can take years for regulators to study and approve. The U.S. Congress has talked about permitting reform, but a solution to the problem isn’t currently on the horizon.

The U.S. isn’t the only place with transmission-construction and grid-connection obstacles. In India, land permitting for solar energy can be a bureaucratic nightmare and remains a barrier. In Germany, local opposition to new high-tension transmission lines to carry offshore wind energy from the country’s northern shores to its southern factories blocked projects for years before the Ukraine crisis. In Africa, governments that can access foreign aid for construction of wind and solar installations have had more difficulty financing the transmission lines to carry the power generated to populations and industry. All of this will continue to slow down electrification.
It isn’t just the occasional squirrel that’s the problem. In recent years, we have witnessed weather systems that knocked out power for huge swaths of the U.S. at once. The war in Ukraine is a reminder that cyberattacks against the grid could be catastrophic if too many aspects of daily life are tied to a singular infrastructure. Already, there are many vital services that cannot be conducted without access to electricity, like lighting, telecommunications, data centres and financial services. Broadening that to our entire fuel system and industrial operations seems risky, if not downright irresponsible.
There will be technical solutions to the risks of electricity disruptions, but it will take time and money to implement them. Households, governments and regional grids will all have to invest in backup systems that can be turned on seamlessly using automation when the larger grid goes down. That could take decades—and an enormous amount of money. BloombergNEF estimates that it could take as much as $17.3 trillion to expand the grid and $4.1 trillion to maintain what is there now, for a total of $21.4 trillion.
Ultimately, there is little doubt that the world is heading for the electrification of a lot more things. And that’s good—for energy security, stable economic growth and reduced greenhouse-gas emissions.
But it’s also clear that a goal of electrifying everything is neither possible nor desired, and putting all our power eggs in one basket would be a fool’s errand. Innovation is by no means isolated to the electric domain. Many forward-looking businesses are experimenting with new ways to squeeze emissions out of industrial processes, and to replace fossil fuels in transport and building applications, in some cases with assistance from governments. Power to them. Rather than naysay what’s not electricity, let’s hope they unlock superior solutions.
From making unpopular decisions to learning when to listen, leaders from five businesses reveal what nobody prepared them for — and how running a company has challenged their expectations.
Technology and semiconductor shares fell sharply as investors questioned the debt financing the AI infrastructure boom and confronted higher rates and Chinese competition.
Elon Musk is exploring a potential merger between Tesla and SpaceX, a deal that could reshape the future of AI, robotics, autonomous vehicles and space technology. With a combined valuation potentially reaching $3.5 trillion, the move could bring Musk’s vision of an interconnected technology ecosystem closer to reality, although a deal remains uncertain.
Elon Musk has engineered ties between Tesla TSLA 3.41%increase; up pointing triangle and SpaceX SPCX 7.79%increase; up pointing triangle that are hard to break, and now he wants to fuse them together permanently.
Musk has run both Tesla and SpaceX concurrently over the past two decades, using a schedule that dictated which days he spent focused on each business.
The companies have often shared resources and personnel, signaling their close ties. Last year, SpaceX looked into creating a spacesuit for Tesla’s humanoid robot Optimus, a person familiar with the matter said. Tesla last week showed off its new Roadster, a vehicle featuring SpaceX rocket thrusters that it hopes to soon bring to market.
And in recent months, Musk has repositioned both companies by expanding beyond their core operations toward a shared mission centered on artificial intelligence.
The world’s richest man on Tuesday signaled his interest in tying up SpaceX and Tesla, marking what would be the biggest corporate merger of all time. Because he serves as chief executive of SpaceX and Tesla, Musk said committees of independent directors at both companies are evaluating a possible deal, adding that a transaction might not come to fruition.
The committees will likely evaluate, with lawyers and bankers, how each company would fare in a potential deal and how a deal might best be structured. They then present their conclusions to their respective boards, who typically vote on whether to proceed.
“It’s an odd Kabuki dance where two groups of people are talking and I can’t be in the conversation,” Musk told SpaceX investors on Tuesday in response to an analyst’s question about a potential deal.
For Musk, the merger supports his vision of a world full of autonomous cars, humanoid robots and weekly rocket launches, as well as the data centers and satellites required to keep the whole thing running.
Some investors and analysts said they expect a transaction would be structured as an all-stock deal, with SpaceX potentially paying a modest premium for Tesla shares.
SpaceX, which has a market value of about $2 trillion, said it is seeing sharp growth in revenue across its businesses, which include operating data centers, launching rockets and operating satellite networks such as the internet service Starlink. Tesla is valued at about $1.5 trillion and is expanding its operations beyond its automotive and energy business. Shares in both companies traded higher following the news Tuesday.
Musk’s substantial ownership stakes in both companies, along with voting control at SpaceX, has enabled him to set the deal in motion. Analysts and investors said the deal will probably face regulatory scrutiny internationally, though some see Musk’s close relationship with the Trump administration as an asset to getting approval.
The companies haven’t said which directors are on the special committees evaluating a potential deal. Several SpaceX and Tesla board members have either personal or business ties to Musk. And like Musk, venture capitalist Ira Ehrenpreis sits on both boards.
In a filing this week, Tesla outlined millions of dollars in business agreements with SpaceX and its subsidiaries last year, including $143 million in car sales to SpaceX, $3.3 million in advertising that it bought on the social-media platform X and $430 million in revenue from the sale of Megapack batteries for SpaceX’s data centers.
The companies also split the cost of resources including the use of Musk’s SpaceX jet and the bill for his personal security, which he runs through a private company.
Employees at both companies routinely move between companies to work on special projects, and some executives have dual roles, including Charles Kuehmann, vice president of materials engineering at both SpaceX and Tesla, and Ashok Elluswamy, the vice president of AI software at Tesla who runs a joint venture with SpaceX called Digital Optimus.
Over the years, Musk has launched new startups within his empire, including brain-implant company Neuralink, underground-tunnel developer the Boring Company and xAI, the AI startup that merged with SpaceX in February.
It is that AI business that Musk thinks can serve a market worth tens of trillions of dollars, justifying the need for a merger.
The business case goes like this: Tesla is developing robotaxis and robots, which it calls “physical AI.” SpaceX is working on the back end of physical AI: the data-center capacity and internet connection required for those robotaxis and robots to operate continuously.
“I don’t see what the value of Tesla is if it’s not merged with SpaceX,” said investment adviser Ross Gerber, a former Tesla bull turned critic invested in both companies. “If they don’t merge, the brains of everything that runs Tesla is owned by another company.”
On top of it all, both companies face constraints on the supply chains they need to make this world a reality, particularly when it comes to chips. To address this, Musk earlier this year announced a joint venture between Tesla, SpaceX and Intel to design and manufacture chips in Texas. “The most epic chip-building exercise by far,” he has said.
For Musk, a merger would also solve two problems: demands on his attention and his lack of control at Tesla.
Tesla for years was Musk’s only public company, a status that came with greater scrutiny. There, Musk reports to a public board, as well as individual investors who make up around 30% of Tesla’s voting power, according to FactSet.
The question of Musk’s attention became a particular focus for investors and the board in recent years after he acquired Twitter in 2022 and launched xAI in 2023, and again in 2025 as he spent time in Washington, D.C., running the Department of Government Efficiency in the early months of President Trump’s second term.
As Tesla’s car business suffered in 2025, Musk threatened to take his AI ambitions outside the company if he wasn’t granted 25% voting control. Last November, Tesla shareholders approved a new pay package for Musk, which created a path for him to vastly expand his stake.
As of Sept. 30, Musk owned a roughly 20% stake in Tesla, according to the company’s proxy filing.
The SpaceX IPO gave Musk a different path. When SpaceX went public in June, the deal’s structure enabled him to have more than 80% voting power at the company—so much that he can’t be fired and decisions can’t be made without his support.
If SpaceX acquires Tesla, he will likely stay in control.
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