Elon Musk was recently named the person of the year by times magazine. And Musk has become almost like a weekly reminder for some period now. The 50-year-old billionaire has a nearly natural tendency to be in news circles from time to time. Musk is prominently known as the CEO, Co-founder of Tesla Motors (TSLA), Space X, PayPal(PYPL), founder of Neuralink, and Open A. I, The Boring Company, and many more.
- Musk is observed as an entrepreneur, a business magnet (at the moment), a visionary engineer, a workaholic, and a very outspoken person regarding his thoughts and critical thinker.
The astounding success and praise he received in past years are almost like a superhit movie script. However, there has been no movie so far in his life. Yet, the man has raised and accumulated millions and billions of dollars in many ways by selling it directly to the people. His success can be attributed to his relentless work ethic and the lion-hearted belief system.
- He doesn’t just work around 80-120 hours per week. But also segregates his working hours to engage with his resources to achieve optimal productivity and returns.
- For example, Musk spent 42 hours in his Tesla factory and 40 hours in SpaceX in an average week.
- Musk has a total net worth of $274 billion and counting. Musk has surfed on the tides when the market conditions are complex and highly uncomfortable for most. While most of the world suffered in 2020, his asset valuation soared in 2020.
The co-founder of Tesla Motors (TSLA), PayPal (PYPL), and the founder of SpaceX, is one of the world’s wealthiest people in the world. His astounding success is often attributed to his relentless work ethic and lion-hearted belief system. He doesn’t just work around 80 to 120 hours per week but is also a very focused and tenacious person. The famous entrepreneur has become the world’s richest person by dethroning Jeff Bezos of Amazon, even when market conditions are difficult for everyone else. He has overtaken Amazon Founder Jeff Bezos a couple of times now. The back and forth for the world’s richest man position will oscillate between them as the wind blows in the market and economy.
Elon Musk also has a very active social media presence, especially his Twitter presence. After all, the man has 66 million followers on the social media platform. His direct and brute expression of thoughts and opinions on various matters has steered the pot many times. Giving him his fair share of praise and criticism.
- However, it could also be seen that he has spoken about not being really interested in optimal utilization of monetary aspects of life for personal pleasures.
- Many individuals think of Elon Musk as an icon, the real-life iron-man, and as some may call him, an alien under human skin (the man said it himself).
Let’s look at the life of this ambitious, mad-genius and one of the most influential critical thinkers of this century.
1. Who is Elon Musk?
On June 28th, 1971, Elon Musk was born in Pretoria, South Africa. He spent his childhood and schooling years there only. He has a younger brother (Kimbal) and a younger sister (Tosca). From a very young age, Musk was an introvert, and most of his time, he chose to stay with his books. Coming from a wealthy family, Musk had nothing much to worry about on financial constraints growing up.
- At the age of 10, he developed an interest in computers, and he registered for further computer lessons. But soon finds out that the teacher knows far less about computers than he did.
- So, he self-taught himself some coding and developed a video game by 12. He made his first business sale for $ 500 by the age of 12 years.
Musk never wished to serve in the South African Army for compulsory service draft. So he chose to study abroad in Canada to avoid the conscription draft. Musk looks at America as a land of opportunities, and so to get in, he chose Canada as an entry point.
- Musk arrived in Canada in June 1989. In 1990, he entered Queens University, Ontario. After two years, he transferred to the University of Pennsylvania. He graduated with a Bachelor of Arts in Economics and a Bachelor of Science in Physics.
- Later in 1995, he was pursuing a Ph.D. program at Standford. Still, he dropped out to start his first official business venture – an internet start-up along with his brother. The latter, by this moment, had left South Africa too. Earning them the first of the millions on its sale to eBay in 2002.
Elon Musk is a problem-solving person and not a solution expert from various records. The indifference in general consensus about problem-solving and solution experts has lauded him in a ‘little bit’ of trouble. Looking at the profile of Musk, his businesses, and his financial activities, it could be seen that he is a self-taught guy. Most of the things he knows are self-taught. He relies on books for many of his marvelous business ventures and acts. From an early age, he has developed an active reading habit that helps him assess his position during problem-solving, be it in any of his ventures.
2. What has Elon Musk Done?
From very early on, Musk had a fix for things. He is a car-maker, but his actions are not like other car-makers in the industry. He says he just simply wants to make people’s lives better than they were. And has also used most of his life to use conventional energy sources and space exploration. Which has given him his own Identity.
When Musk left S. Africa for Canada, he was just a 17 years old boy. Just as any other 17 years-old, looking out the window of his bus when he landed in Canada, he too wanted to do something exceptional. Musk himself has cleared several times that he used to think of himself as insane as lots of thoughts would surface his mind as a kid. It could also be seen that he was looking for answers and reasons.
After dropping out of his Ph.D. program, Musk started a software start-up called Zip2 with his brother. Zip2 was an online platform that provided and licensed online city guides for the newspaper. By 1998, the company partnered with about 160 newspapers.
- Later in 1999, Musk sold Zip2 to Compaq for around $ 307 million.
However, Musk seemed no further gratification from his accomplishments. In 1999 he started another company named X.com, with the money he had just earned on the deal with Compaq. Later it was merged with Confinity to form Paypal.
- In 2002, Musk sold Paypal to eBay for about $ 1.5 billion.
In 2002, Musk founded a new company SpaceX with rocket engineer Tom Mueller. With this company, Musk wants to colonize Mars. The company was developed for low-cost and affordable space exploration. Musk initially just wanted to go to space. But soon saw and realized the scarcity of resources available for space exploration. He formed SpaceX buy fund the project himself.
- In 2008, SpaceX became the first private company to send a liquid-propellant rocket (falcon-1) into Earth’s orbit.
- In 2015, the company made the first vertical takeoff and vertical propulsive landing rocket. It was created to reduce space tours’ costs and reuse the same rocket for later launches.
- In 2020, with Space Crew Dragon Demo-2, the sent astronauts to orbit and the ISS. The first private company to do so.
- SpaceX is also developing Starlink, a mega satellite constellation for high-speed and low-cost internet service.
- SpaceX is developing Starship, a launch vehicle for launching interplanetary space vehicles.
In 2004, in February, Elon Musk invested $ 6.5 million in Tesla and became the majority shareholder in the company. He joined the board of directors at the seat of chairman. Musk also started to be deeply involved in the company’s day-to-day affairs. He also oversaw the production design of Roadster. After the famous turmoils and escapade with Eberhard, he assumed the role of CEO, product architect, and the ultimate image of the company.
- Musk and others were designated as co-founders of Tesla after a 2009 lawsuit settlement with Eberhard
- Tesla went public in 2010. Its IPO was $17, higher than the estimated $14 – $16. It raised around $226 million. The company also reached a market cap of $3 trillion.
- At the moment, this article has been written. Tesla’s stock is $900 though it fell from last year; still, it is a very high-value stock.
In 2006 a new company was formed, SolarCity. It was developed by Peter and Lyndon Rive, cousins of Elon Musk. By 2013 SolarCity was the leading residential solar installer in the U.S. By 2015, it accounted for 28% of the non-utility solar installation in the U.S. that year.
- In March 2016, SpaceX bought $90 million of SolarCity’s stock.
- By August 2016, Tesla officially announced the acquisition of SolarCity. And Elon Musk merged Solar city to his grand plan to accelerate the world’s transition for sustainable energy.
- However, the revenue of SolarCity is decreasing. This is mainly because of the increasing costs, failure to compensate the cost with revenue or extra funding, and many more reasons.
In the same year, 2016, Elon Musk formed a new start-up called Neuralink. The vision here is to integrate the human brain with A. I for medicinal and other benefits and purposes.
- During a live demonstration of one of its devices temporarily called a fit-bit for the skull. Musk briefed on its features claiming, it can cure paralysis, deafness, blindness, and other disabilities. Musk also faced severe criticism from many neuroscientists on his claims.
In 2016 alone, Musk formed one more company, The Boring Company, to construct tunnels and much more.
- The company also completed a tunnel underneath Las Vegas Convention Centre by early 2021.
- The company also produced 2000 flamethrowers inspired by the movie Spaceballs as a merchandise and publicity stunt.
3. What is Elon Musk Doing?
Currently, Elon Musk is the longest-running CEO for any automobile company in the U.S. Musk’s businesses are rare as they are about audacity and sheer courage. He wants to colonize Mars, convert the car industry, make superfast trains in vacuum tunnels, integrate A. I into the human brain and to overturn the solar power and battery industry. All of his projects are futuristic. Elon Musk also has a very high appetite for risks. By 2002, when he was just in his 30’s, he sold the holding of his first ventures, Zip2 and Paypal. He had almost $200 million in from the deals with Compaq and eBay. He planned and executed to invest half of his fortune into the business while keeping the other half. Later during 2007-2008, he used most of his personal wealth to stand with SpaceX and Tesla. Elon Musk is one of the wealthiest men in the world. Still, he is also involved in many businesses, where more heavy investments and asset formation will occur in the coming years.
Let’s look at some companies, industries, and sectors that Elon Musk is involved in.
Company | Industry Involved | What is it doing? |
1. SpaceX | Space Launch and Interplanetary Exploration and Research. Telecommunications and Networking
Satellite Internet Service
| Offering and producing low-cost space exploration, transportation, and research. Providing high-quality, low-cost telecommunications network.
Putting Satellite constellation into space to provide cost-efficient and high-quality worldwide internet access. |
2. Tesla Inc. | Automobiles
Personal Transportations
Solar Energy
Fossil Fuels
Car-Sharing
| Building low-cost electric vehicles and cost-efficient electric infrastructure.
Developing public transportation and eliminating the need for car ownership in general.
Increasing the availability of Power walls, solar roofs, and other clean energy sources.
Maximizing the efficiency of solar roofs and others.
Making use of idle Tesla cars and making public transportation cost-effective. |
3. The Boring Company | Tunneling
Real Estate
Freight Shipping
| Building a cost-efficient tunneling system, specifically for high traffic areas.
Building an adequate low-cost and, more importantly, cost-effective infrastructure.
Making freight transportation cost-efficient. |
4. Open A. I
| AI and Machine Learning
Competitive Gaming
| Owning and experimenting with the best A. I systems in the world for utility and other services. Mainly for merchandise and publicity purposes. |
5. Neuralink | Prosthetics
Medical Treatment
Military
Robotics | Making low-cost and cost-effective prostheses. Treating severe medical illnesses.
Allowing military enhancements.
Better modeling of the human brain and machine. Building advanced A. I service. |
4. What is Elon Musk?
Elon Musk has fathered 7 children so far. Once while talking about one of the darkest phases in his life. Musk mentioned that having a company is just like a kid. You have to constantly feed them, take care of them, look after them, even if it eats you. We can say Musk is a man of sheer willpower and commitment. I mean, he has invested most of his money into once outlandish projects, like his personal investment in SpaceX.
- Imagine that you have just become a millionaire. Will you put half of your worth in space exploration? And soon the other half in an electric car company, which has no production or consumer line?
Bill Gates called Elon Musk a visionary engineer, but mostly he is not credited for his business and economic skills. For example, Elon is a car-maker, but not like other car-makers. Others started their businesses on the earlier existing infrastructures and models. Musk did not have much choice. Why?
- Simply because he was not making cars as others do. He had no infrastructure; he built one. Steve Jobs did not invent computers, but he changed them; for good. And made the whole world change it too. Elon Musk, too, did not invent electric cars. He just changed them; for good. And made the world follow him.
He has done some phenomenal work from an economics and business administration point. But in economics, one may call his decisions borderline psychopathic. Why? His Risk Appetite! However, the production techniques and the product are also commendable.
- He has kept most of his factories in the USA, mainly for keeping a close eye on his businesses. And to decrease the production cost and time as well. Musk has always been vocal about how brands use extreme resources for placements.
- For example, he has pointed out Apple and other companies’ advertisement and management tactics. He claims to practice minimum brand endorsement in the market. However, Musk has also indirectly used various marketing resources.
Each company has a face associated with them to place itself in the market and consumers. Musk is the face of most of his businesses. And the on-air time he is getting during some recent events and the rise in Tesla’s share price, as Musk tweeted himself, Tesla’s stock is over-priced.
Elon Musk had several milestones in his life. With most of these milestones, there are controversies too. Musk is not new to lawsuits.
- There are many cases of frequent incidents when someone sues Musk or vice-versa. Musk has faced successive criticism over his thoughts and opinions, many calling his responses, statements, and tweets.
- He has several lawsuits monitoring his Twitter profile. Many times has been openly called out for misusing Twitter and misleading consumers and others on multiple occasions.
Recently he has faced criticism on many of his stances on covid vaccination, tax payments, his views on unions, Tesla’s ‘autopilot system,’ and many more. However, if we look at Musk’s business portfolio, he has a good performance record. But he has seen a tremendous increment in his wealth in nights.
- Musk does not have that many assets to verify his market cap. He has to undergo expenses on multiple fronts, and the goods and services produced and sold by his firms do not have that much physical presence.
- However, he has done a commendable job in reducing production costs and production techniques. Undoubtedly, Elon has immensely influenced the entrepreneur culture itself. His commitment to his dreams is full of intensity and honesty. The man has so much right now that anyone would want
Elon Musk has expressed on some occasions that it’s hard to be him, and he wishes no one has to go through what he has gone through. In 2021 he shared he has Asperger’s syndrome. He has also shared that his lifestyle has significantly impacted his life in many aspects.
It has to be noted that Musk is a man with a lot of interest and many people have an interest in him too. The rise in Elon Musk’s image, all due to his charismatic personality. Most people are attracted to him and his thoughts because of his bruteness and openness.
People are excited by his story and want to look into the man. Many even claim there might be something different in him. Maybe there is something different in Elon Musk, just as other influential figures. Perhaps it is what Seal sang graciously, “…my power, my pleasure, my pain..“
P. S: Hey guys, you had fun reading this blog. We had fun making it too. Look in the MoneyTalk section of MoneyPatrol. You will see many more blogs prepared for you and your likings; check it out. You have fun reading, and we will have fun making it!
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