Founding Fathers
Elon Musk is one of the world’s 21st century founding fathers and he has been labelled the modern-day Thomas Edison due to his innovative contributions to technology and the advancement of science. He has the ambitious dream of propelling humanity to Mars and reaching interstellar space. The parallels between Musk’s aspirations and the dreams of the founding fathers of space exploration are undeniable.
It all began in 2002 when he co-founded Space Exploration Technologies Corporation, commonly known as SpaceX. This was the first private endeavour to attempt to launch and land an orbital spacecraft in the modern era. The space industry had been thought to be exclusively for governments, but Musk correctly identified that private venture capitalists could leverage technology and new tooling to revolutionize the sector. To prove this concept, he invested his entire fortune in executing the program.
Sixteen years later, SpaceX has successfully launched numerous commercial and military satellites into the earth’s orbit, and the company’s plans for space exploration remain ambitious at a time when government initiatives are waning. It is obvious why many people look up to Musk as a pioneer.
Accomplishments
In 2008, Musk founded Tesla with the goal of changing the automotive industry by developing a more efficient and sustainable way to power cars. By creating mass market electric vehicles, Tesla aimed to reduce global dependence on fossil fuels and move the industry towards a cleaner future. Musk was the executive chairman of Tesla until 2020, and the company has since gone on to become the most valuable automobile firm in the world with an impressive $400 billion market capitalization.
The Tesla Model X, originally released in 2015, was the first SUV to feature autonomous driving technology. This autonomous driving security suite is now commonplace and is continuing to grow as technology and regulations advance. Through his leadership, Musk achieved a revolutionary breakthrough in the industry that was thought impossible at the time.
Musk is no stranger to the energies industry, having co-founded Solar City in 2006 with the goal of lowering the cost of solar energy. This was achieved through the integration of energy production and storage, making solar energy both a reliable and cost-effective source. Solar City is now known as Tesla Energy, and it is credited with drastically influencing the adoption rate of renewable energy throughout the United States.
Don’t Look Up
Despite these successes, not everyone is convinced of Musk’s ability to continuously push the boundaries of innovation. With each foray into a new industry, Musk attracts both praise and criticism. Even the most prominent investors question Musk’s decisions and the qualities that have made him so successful.
Many of Musk’s detractors advise the public to ‘look up’ and question the business ethics and motives of a man who seems to be guiding Tesla’s journey to the top with hard work and sheer determination. They believe there is a darker story behind Tesla’s success that isn’t quite as glamorous. Tesla’s market capitalization continues to surge, but there is also a seemingly unending series of lawsuits and allegations of negligence that tarnish the company’s reputation.
The bottom line is that whatever the opinions are, it is important to research and form one’s own opinion of Musk and his companies. Examining both the facts and the stories that have been propagated is essential in making an informed decision. As citizens of the 21st century, it is our responsibility to be informed and to be able to think critically in order to discern truth from fiction.
Business Practices
Several recent studies, especially after the arrival of Tesla, suggest that despite his vision and impressive business achievements, some of Musk’s tactics are nefarious. His wages are well below industry standards, the company’s second-hand car sales are very low, and he has even used loan money outside of their intended purposes. It’s not disputed that these tactics have allowed him to reach new levels of success.
Tesla’s factory workers have routinely complained about the hostile workplace conditions, and have expressed their discomfort with Musk’s management style. This is not just limited to his employees either, as multiple reports show that many of Tesla’s suppliers are also dissatisfied with their interaction with the company. Tesla has repeatedly used the threat of suing to get what it wants.
In addition, taxes have become an issue for Musk over the years. Several of his companies have been accused of illegal tax avoidance. It remains unclear whether these allegations are based on true facts, or if they are just another part of the Elon Musk hate narrative.
Health and Safety Concerns
Tesla’s vehicles are often touted as the safest cars in the world, but many reports have raised concerns about the company’s culture of secrecy around information about its safety-related practices. They have even been accused of suppressing reports about faulty parts and dangerous environmental conditions in their factories.
The US Occupational Safety and Health Administration has cited Tesla for various violations, including instances of inadequate medical attention to injured employees. It’s further been claimed that workers are sometimes required to take dangerous shortcuts while on the job without proper protection or training.
Finally, many reports have shown that Musk’s companies use exploitative tactics to pressure suppliers into cutting corners with regards to safety and quality. These tactics include threatening to sue suppliers, underpaying them, and even using threats of violence. This is especially concerning as most of these companies are smaller, less experienced, and more vulnerable than Tesla.
Environmental Impact
Environmental concerns surrounding Musk’s companies have been consistently growing, particularly with Tesla due to the reliance on oil and batteries. Although the number of electric cars is on the rise, it is still a rare sight on the roads when compared to their gas-powered counterparts.
The environmental impact from the mining and processing of materials used in the production of Tesla vehicles, namely lithium and cobalt, is also worrying many environmental advocacy groups. Unfortunately, Musk has not been transparent about the processes used to grab these materials and the waste generated as a result.
In addition, many reports have suggested that Musk is quietly financing businesses that advocate against climate change regulations and that he is using his influence to prevent advancements in green engineering and renewable energy sources. Reports suggest that he has sympathized with anti-environmental organisations and funded the anti-environmental groups behind them.
Financial Stability
Tesla’s financial stability has also been a point of contention, as the company has been burning through cash and has been unable to reach profitability. This has been exacerbated by Musk’s tendency to make seemingly improbable promises in order to win investors’ trust, only to later announce that his statements were impossible for the company to achieve.
The executive’s success has been achieved in large part through debt financing and selling off assets which, in turn, puts a drain on the company’s already dwindling resources. In the age of the pandemic, Tesla was no exception, as the company was unable to pivot with the changing market conditions, resulting in decreased sales and increased losses.
Though the company’s share price continues to rise, the sustainability of this growth is questionable. Many analysts foresee Tesla’s market capitalization dropping in the next few years if the company fails to become profitable or fails to manage its debt properly.
Personal Safety
Despite his successes and achievements, there are a few serious red flags associated with Musk that are cause for concern. He has made numerous accusations of possible criminal activities and has been accused of manipulating the stock market for personal gain. With this, has come increasing reports of physical threats and online bullying directed at him.
Though Musk’s companies have ambitious plans for propelling the world into the future, there is potential danger in his tactics and methods that should be monitored. Many people are worried that Musk’s personal and business life will eventually collide, as it has over the years. If that were to happen, the consequences could be dire.
Finally, although Musk has made impressive contributions to many industries, it is important to note that success can always turn to failure. The risks associated with Musk’s career and companies may not be worth the rewards, and the wise investor should always be aware of the potential downsides of any substantial investment.
