Looking back at the context, I think you're right. It looks like Elon was just trying to explain to someone without much networking background that, like most

Looking back at the context, I think you're right. It looks like Elon was just trying to explain to someone without much networking background that, like most link layers, they'd be using a link layer more simple than IPv6. He probably wasn't making a statement about lossy header compression that discards uncommonly used features.