Musk only has part of the problem.
He was correct when he said we get what we incentivise.
It is our economic system that rewards scarcity over abundance that is the real issue.
Scarce oil will always be more profitable than abundant solar energy.
Our exchange system of values does not work well with full automation – it actively works against the interests of humanity generally.
We need to make an active choice to remove monetary considerations from our long term planning.
That will be too much of a change for many currently in positions of power.
How we stage that transition will define the probabilities of our continued existence.
I guess it depends how you look at it.
Capitalism, as a system, is now demonstrably, in logic, the single greatest existential threat to humanity. That is clear to me, beyond any shadow of reasonable doubt.
So there is a sense in which capitalism has already failed, it is simply that most people cannot see that as yet from the paradigm sets (models) they experience as reality.
And that is not a notion that is common.
Most people still operate from the idea that there is such a thing as “truth”.
It is now clear to me (beyond reasonable doubt), that all knowledge is based in sets of heuristics that have proven useful over some sets of genetic or cultural time and context. In a sense, all knowledge has a flavour of having been useful in some set of historical contexts. In this sense, all knowledge is myth, and myths tend to have been useful in particular historical contexts.
The really tricky thing for us today is the exponential expansion of technology, information, and interpretive schema. We see spreads of schema in the population that are across multiple orders of magnitude in their complexity and diversity of outcomes predicted/expected. That is a real challenge, even for the most skilled in the management of complex systems (in many instances it is past the border of complexity and well into chaos territory).
To me, capitalism as a system is already dead, and what we are dealing with is what emerges from its decomposing corpse.
To me, the logic is clear – if anyone is interested in living a very long time, then what emerges must be based fundamentally in universal cooperation, and must have effective attendant strategies that both detect and remove “cheating strategies”. Life and liberty need to be core common values. And the anti cheating part of that is likely to be something of an eternal evolutionary arms race, and with modern technology it can be very effective. And for a host of reasons, it must be decentralised and distributed.