What Did Elon Musk Do Wrong?
Elon Musk is an iconic entrepreneur who has achieved incredible feats as the CEO of SpaceX, Tesla, and The Boring Company, to name a few. Although Musk has experienced massive success, he has also experienced scandal and failure. In this article, we’ll explore some of the controversies, missteps, and public perceptions that have plagued Musk’s career.
Misleading Tweets and Statements
During 2018, Musk had been embroiled in multiple controversies, involving his public statements on Twitter and elsewhere. On August 7, he tweeted “Am considering taking Tesla private at $420. Funding secured.” This tweet sparked a flurry of media attention and caused Tesla’s stock to soar nearly 9%. However, Securities and Exchange Commission had been investigating the accuracy of Musk’s claims and consequently charged him with securities fraud. He was fined $20 million and forced to resign as Chairman of Tesla’s board.
In July of 2018, Musk had called a British diver a “pedo guy” during an argument about the rescue of a boys soccer team in Thailand, causing further outcry and drawing questions about Musk’s behavior. Musk later settled that dispute with the diver as well.
More recently, Musk has been in the public eye for his public rants on Twitter, which often appear to be sarcastic or unhinged in nature. It is unclear if these are serious attacks on companies and celebrities, or if they are part of Musk’s eccentric character, but they certainly have caused some members of the public to question his ability to lead his companies.
Strikes and Funding Problems
Musk has also experienced strikes, financial issues, and delays in recent years. In May 2018, workers from a Tesla factory in Fremont, California went on strike, citing health and safety issues. In addition, Tesla, SpaceX, and The Boring Company have all struggled to raise needed capital for long-term projects. Tesla, for instance, has been unable to generate profits for over a decade, despite its clear successes in technology. Finally, SpaceX has suffered delays and other problems due to the complexity of the projects. As such, it has been difficult for Musk to achieve the ambitious goals he has set for his companies.
Workplace Culture Controversies
Musk has come under fire for his management style and workplace policies. In an email to Tesla staff, he accused some employees of being “saboteurs” and encouraged employees to screen their colleagues for potential wrongdoing. This caused further criticism of Musk, as employees argued that the message was inflammatory and unprofessional.
Also, allegations of long working hours and poor work-life balance have also plagued Musk’s companies and, according to some reports, could be contributing to the slow and steady decline in morale amongst employees. Tesla and SpaceX have both experienced turnover issues and Musk has had to work hard to address these issues.
Criminal and Regulatory Issues
In 2017, the Department of Justice (DOJ) launched an investigation into Tesla regarding the Model 3 production numbers and the possible misreporting of data to investors. While the investigation has concluded with no criminal charges being filed, the DOJ did issue a Cease & Desist order to Tesla, ordering the company to reform certain practices and maintain records of certain activities.
Musk was also accused of violating US Securities & Exchange Commission (SEC) rules when he tweeted about Tesla’s production numbers. This led to additional charges from the SEC, a settlement, and further restrictions on Musk’s public statements about Tesla.
Musk has also been accused of violating US labor laws by working with subcontractors and refusing to pay taxes or other labor-related expenses. This has led to further fines and penalties for Musk and his companies.
Money Troubles
Musk has had multiple money troubles in recent years, which have been well-publicized. In 2018, Musk borrowed $65 million from the government to pay off some of his debt. In addition, he has been struggling to raise capital through public offerings and debt in order to fund his projects. This has caused investor confidence in Musk to drop and has made it difficult for him to fund his ambitious plans.
These financial troubles have been compounded by Musk’s penchant for investing heavily in side projects such as The Boring Company, which have absorbed a great deal of his resources. These investments have not produced significant returns, resulting in further losses for Musk.
Media Perception
Despite Musk’s success, many media outlets have painted him in a negative light. Primarily, CNN and The Guardian have consistently published critical stories about Musk, portraying him as a dishonest and unreliable leader. This negative coverage has been utilized to create further doubt about Musk’s companies and investments, which has caused investors to be hesitant to invest in Musk’s companies.
In addition, some members of the public have begun to question Musk’s ability to lead his own companies, primarily due to his failures to reach timelines, his tendency to jump from project to project, and his public outbursts. While his supporters have been unwavering, there is growing skepticism and mistrust of Musk among members of the public.
Stocks, Bonds and Other Investments
Despite facing continuous skepticism, Musk’s companies and investments are performing well. Tesla is currently valued at over $100 billion, while SpaceX and The Boring Company have each gained substantial valuations. Many investors have speculated that Musk’s companies and investments will continue to perform well in the long run, despite their short-term struggles.
It is also important to note that Musk’s success has been enabled, in part, by his strong partnerships with the government. In January 2018, for example, Musk’s SpaceX was awarded a $130 million contract from the US Air Force, significantly contributing to the company’s success.
Musk has also reportedly received large sums of money from venture capitalists and private investors, which has enabled him to take risks and pursue his ambitious goals. These investments, combined with Musk’s drive and ambition, have enabled his companies to stay afloat despite their struggles.
Environmental Impact
Musk has also faced criticism for Tesla’s manufacturing practices and its impact on the environment. Specifically, Tesla’s electric vehicles have been alleged to have a negative effect on human health due to the production of small particles that are released into the air due to their use.
Furthermore, Tesla’s production process reportedly requires a large amount of energy and resources, which can be detrimental to the environment. There are also questions about the sustainability of Tesla’s batteries, which are made from a variety of minerals and chemical compounds.
It is clear that Musk’s efforts have created an environmental impact, and there is a growing concern among environmentalists that the technology he has developed may come with a cost to the planet.
The Final Word
It is clear that Musk has both achieved and struggled with success. Despite the negative media attention and public criticism, Musk has continued to power forward and achieve successes in the business world. From controversy to success, there has no doubt been a wild ride for Elon Musk.
