What Is Elon Musk?

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In January 2018, Tesla introduced particulars of a brand new contract with its CEO, Elon Musk, that sounded much less like an executive-compensation package deal and extra just like the premise of a sport present. Below the deal, Musk would take no wage however might earn giant bundles of inventory choices every time he raised the corporate’s worth by $50 billion. If it went up by a mere $49,999,999,999, he would depart empty-handed.

The contract’s high prize could possibly be unlocked provided that the corporate’s market cap hit $650 billion by 2028, a 13-fold improve. Tesla was bleeding a lot cash — it was among the many most shorted shares on Wall Road — that rising its worth that considerably in a decade, or ever, appeared hopeless. The New York Instances’ Andrew Ross Sorkin described the feat as “laughably unimaginable.” After which, in December 2020, with seven years to spare, Tesla’s worth blew previous the goal, lifting Musk’s private internet price to $185 billion and making him the richest particular person on the planet.

There have been a number of causes for Tesla’s rise, a lot of them concrete. The corporate introduced it will open new factories in Austin and Berlin. It reported 4 consecutive worthwhile quarters for the primary time and was invited to hitch the S&P 500. It grew manufacturing to construct half 1,000,000 automobiles in a single yr and dominated the U.S. marketplace for battery-powered electrical automobiles. It was a pioneering firm with unbelievable potential. But the one largest accelerant — an element that, right now, explains why an industrialist memelord is the dominant determine in American enterprise and tradition — was in all probability Musk’s tweets.

Proper after his new contract took impact, Musk began tweeting so much. He had all the time been prolific, however this was the purpose the place he went from, by one rely, 197 tweets per thirty days (December 2017) to 384 (Might 2018), posting Child Yoda memes and self-produced rap songs, calling a diver who had courageously helped rescue youngsters from a cave a “pedo man,” and saying bogus plans to take Tesla personal at $420 a share. After which, emboldened by his victory within the defamation lawsuit over his pedo-guy tweet and his mild punishment from the Securities and Change Fee over his $420 tweet, Musk tweeted much more — 446 occasions in July 2020.

Whether or not Musk was making doubtful claims about his firm’s manufacturing capabilities (“1000 photo voltaic roofs/week by finish of this yr”), making use of reverse psychology (“Tesla inventory value is just too excessive imo”), or hyping different meme shares on the aspect (“Gamestonk!!”), Tesla’s inventory went up — first by somewhat after which, throughout the pandemic, by so much. His followers spent their stimulus checks on Tesla shares, then they found the choices market, magnifying the good points. In late 2021, Musk’s internet price touched $315 billion, prompting Forbes to declare him the richest one who had ever lived.

It’s arduous to fathom how any individual might earn more money sooner than anybody ever has by tweeting, but that’s just about what occurred: A carrot was dangled, and Musk, probably figuring he would by no means attain it on the idea of such old school metrics as quarterly earnings, yoked Tesla’s inventory to his Twitter feed and went goblin mode. A little bit like when Neo from The Matrix realized that actuality was a mirage and due to this fact he might do kung fu with none classes, Musk intuited the illusory nature of the inventory market and social media and ran up a brand new all-time-high rating. If Tesla might need been a $300 billion firm underneath a generic Silicon Valley CEO, it was a $1.2 trillion firm with the man who turned it right into a product cult.

He had all the time been sui generis, however that is when he turned the Elon Musk we all know right now — a grasp of atoms, bits, and bullshit who begs our awe, skepticism, and irritation in ever-shifting proportions and whose record-breaking fortune could also be solely the tenth-most-interesting factor about him. Musk places a reported 80-plus hours per week into working two main corporations, Tesla and SpaceX, with time left over for aspect initiatives in tunneling (the Boring Firm) and mind implants (Neuralink) — and one way or the other much more time to host Saturday Night time Stay, suntan with Ari Emanuel, and spend whole afternoons explaining orbital physics and the limbic system to Joe Rogan. It’s no marvel Musk thinks we reside in a simulation, as a result of he positively lives in a single the place the conventional guidelines of the universe appear to carry much less authority: Newton’s legal guidelines, monetary rules, mores of enterprise and celeb, and shortly, he hopes, the legally binding phrases of his buy settlement with Twitter.

In April, Musk made an unsolicited $44 billion bid for his favourite social community. It appeared like unhealthy enterprise; the corporate had misplaced cash for eight of the previous ten years. Musk insisted he wasn’t in search of a revenue however fairly to save lots of what he referred to as the web’s “de facto city sq.” from partisan content material moderators. “Having a public platform that’s maximally trusted and broadly inclusive is extraordinarily necessary to the way forward for civilization,” he stated. “I don’t care concerning the economics in any respect.” However he cared concerning the economics considerably when, amid a broader inventory slide, Twitter’s worth sank by virtually a 3rd from what Musk had agreed to pay for it. He then stated the sale was “briefly on maintain” and accused the corporate of deceptive him over the variety of bots and spam accounts on the platform — although, he hinted, he is perhaps prepared to tolerate these further bots at a reduced value. Twitter declined to discount, and in July, Musk tried to terminate his provide. (One concept is that Musk had all the time meant to bail on the deal and was utilizing it solely as cowl to promote $8.5 billion of Tesla inventory.)

Twitter sued to drive Musk to comply with by on the transaction, and a Delaware Chancery Courtroom decide has scheduled an October trial. If Musk wins, it could show he has reached escape velocity from all guidelines and legal guidelines; it’ll additionally in all probability decimate Twitter’s inventory and depart the corporate uncovered to a different hostile takeover, assuming it isn’t incinerated by shareholder litigation first. If Musk loses, he’ll get the cosmic comeuppance of being judicially compelled to purchase the stupidest firm on the earth at one thing like a $14 billion markup. Regardless of the end result, the Curb Your Enthusiasm tubaist waits within the wings.

Musk has performed the troll so convincingly that it’s straightforward to overlook he isn’t only one. Take into account his offline ability set, an array of skills heretofore unimaginable outdoors Walter Isaacson’s most wicked fantasies. Musk’s formal training ended with bachelor’s levels in physics and economics from the College of Pennsylvania, however his self-taught experience spans aeronautics, photo voltaic power, synthetic intelligence, and different fields. Individuals he has labored with say he combines the skills of a enterprise capitalist who can spot and manifest funding for far-off alternatives (such because the potential to energy a automotive with lithium-ion batteries or make low-cost rockets that may be launched greater than as soon as), an engineer who might help clear the sensible hurdles to these alternatives (like designing the physique of an car or stress-testing rocketry parts), a techniques savant who can align complicated organizational processes (as in vertically integrating provide chains in order that a lot of Tesla’s and SpaceX’s elements are made in-house), and a pacesetter whose warped charisma can push workers by tough deadlines. (Musk is alleged to have motivated, or probably simply frightened, Tesla employees throughout the manufacturing of the corporate’s Mannequin 3 by sleeping nights on the manufacturing unit flooring.)

To whom might you even evaluate this Musk? He makes web moguls corresponding to Mark Zuckerberg and the Google guys appear to be dilettantes and their merchandise like glorified spyware and adware. He has been referred to as an inheritor to Steve Jobs, however whereas Jobs might need talked about placing a “dent within the universe,” Musk is definitely working on the degree of interplanetary ambition. Trying to purchase Twitter as a gag after which getting pantsed in entrance of your complete contract-abiding world might not engender a lot religion in his farthest-fetched plans to unfold humanity throughout the cosmos. However whereas all people’s laughing, his automotive and rocket corporations are on monitor to maintain thriving into 2023 and past.

Tesla is probably the most precious automaker on the earth though it sells solely a fraction as many automobiles as most of its rivals. Within the second quarter of 2022, it doubled earnings over the identical interval in 2021, which is outstanding in itself however extra so given COVID-related manufacturing unit shutdowns and Musk’s copious private distractions. Coming subsequent yr (perhaps) is Tesla’s second-generation Roadster, and if it ships as Musk has promised, will probably be among the many quickest electrical automobiles ever made, with a high velocity of over 250 mph, and the fastest-accelerating automobiles of any sort, in a position to do zero to 60 in simply 1.9 seconds. SpaceX’s prospects could also be even larger. The corporate has diminished the fee to ship cargo into orbit by an element of 20. One among its rockets, Starship, the tallest and strongest ever constructed, is theoretically able to hauling greater than 100 metric tons. If Musk’s engineers can determine get the prototypes to cease exploding on takeoff and touchdown, the Starship might sometime have the ability to transport 100 folks to the moon or Mars, then, as a result of it’s totally reusable, flip over and blast off to Earth once more. Musk has stated the Starship might finally fly for as little as $2 million per launch, which might make its price per kilogram of payload one thing on the order of overnighting an envelope from Manhattan to Brooklyn.

Or perhaps none of that may occur, as a result of Musk will be an appallingly unhealthy estimator. As his biographer Ashlee Vance has famous, engineers at one in all Musk’s early start-ups realized that if he anticipated a coding job would take an hour, it will often take two or three days, and if he thought it will take a day, it would take a few weeks. He has bumped the ETA for SpaceX’s first manned rocket to Mars from 2026 to 2029. He predicted that Neuralink would check its mind interface in people by 2020; now he says by the tip of 2022. In Might, he stated that Tesla’s self-driving Autopilot function would eradicate the necessity for human drivers by subsequent yr, which is analogous to claims he has made yearly since at the very least 2014.

Nonetheless, Musk has delivered on sufficient laughably unimaginable objectives that those that doubt him accomplish that at their very own danger. He appears pathologically bent on silencing critics — both by succeeding or making them signal NDAs — and he might need been designed in a lab to hold long-term grudges as motivation. He says he was bullied as a child in Pretoria, South Africa, and as soon as bought a nostril job to reopen his airways after he was overwhelmed up and thrown down a flight of stairs. He’s estranged from his father, an individual he has referred to as “a horrible human being.” He was ousted as CEO at his first two corporations — Zip2, a maker of city-guide software program for newspapers that offered to Compaq for some $300 million in 1999, and X.com, which turned PayPal and was offered to eBay for $1.5 billion in 2002 — so he put his personal cash into Tesla and SpaceX, making him more durable to do away with. Tesla’s whole 2018–21 inventory run may partially have been his revenge on the brief sellers that when focused the corporate, together with Invoice Gates, who Musk alleges nonetheless hasn’t closed a multibillion-dollar brief place. And to Musk’s credit score, his authentic visions for Zip2 and PayPal, each overruled on the time, have been at the very least partially vindicated later. He’d wished to show Zip2 right into a shopper hub for maps and local-business evaluations years earlier than the launch of Yelp and Google Maps. And he reportedly thought PayPal ought to have held out for a greater acquisition provide; it’s at present price round $100 billion.

The query is whether or not Musk’s tried jilting of Twitter is only one extra sideshow on a normal path to enterprise glory or proof that he’s immolating like a kind of Starship prototypes. Up to now, his 2022 has included a number of accusations of racial discrimination from workers; a resurfaced sexual-harassment allegation from a SpaceX flight attendant; the recall of almost 600,000 Tesla automobiles; animal-cruelty complaints in opposition to Neuralink; the invention of three publicly unacknowledged youngsters; and a Wall Road Journal declare that he had an affair with Sergey Brin’s estranged spouse, Nicole Shanahan, that led to the Google co-founder submitting for divorce. (Tesla denies the racial discrimination, Neuralink disputes the animal cruelty, and as for the affair: A lawyer for Shanahan denies it, as does Musk. “Haven’t even had intercourse in ages [sigh],” he posted.) None of those scandals hung round for lengthy sufficient to inflict a lot harm partially as a result of he tweeted proper by them, creating an countless diversion.

These days, there appears to be one thing purposeful about how Musk tweets the information, muscling his approach into trending subjects like a one-man bot farm. A tag cloud for one in all his slower weeks might embody local weather, COVID, free speech, the 2024 election, abortion, gun management, the Russia-Ukraine battle, UFOs, crypto, Elden Ring, the Johnny Depp–Amber Heard trial, and extra. He has unfold himself by each cultural jurisdiction in order that he’s all the time the highest story regardless of which information bubble you’re in. Some billionaires personal magazines and newspapers, however Musk might have constructed one thing greater, a decentralized media empire that amplifies his each utterance right into a blizzard of commentary and clickbait so that every one reward, trustworthy criticism, and exasperated overreach cancel each other out and he can put on our exhaustion like armor.

As soon as, throughout the post-dot-com innovation drought that spawned it, Twitter was the tender and ridiculous antithesis of every little thing that Musk, a maker of arduous and severe tech, stood for. “We wished flying automobiles,” went the motto of his PayPal co-founder Peter Thiel’s VC agency. “As a substitute we bought 140 characters.” Now it’s existentially necessary to every little thing Musk does — and because of him, its personal future has by no means been bleaker.

Musk’s Twitter imbroglio recollects one in all his earliest self-importance purchases. When Zip2 was acquired, he celebrated his first main payday by dropping $1 million on a McLaren F1, then the world’s quickest automotive. One afternoon, he was driving in Silicon Valley with Thiel, who requested, “So what can this do?” “Watch this,” stated Musk as he stomped on the accelerator. The automotive hit an embankment, jumped three ft within the air, spun round, and touched down, its physique and suspension totaled. “You already know, I had learn all these tales about individuals who made cash and acquired sports activities automobiles and crashed them,” Musk reportedly advised Thiel. “However I knew it will by no means occur to me, so I didn’t get any insurance coverage.” After which he climbed out of the wreck and not using a scratch on him.

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