The Elon Musk Blog Series: Wait But Why

Post 1: Elon Musk: The World’s Raddest Man

In college, he thought about what he wanted to do with his life, using as his starting point the question, “What will most affect the future of humanity?” The answer he came up with was a list of five things: “the internet; sustainable energy; space exploration, in particular the permanent extension of life beyond Earth; artificial intelligence; and reprogramming the human genetic code.”

| Location: 15 | Date: October 10, 2016 |

But two days into the program, he got massive FOMO because it was 1995 and he “couldn’t stand to just watch the internet go by—[he] wanted to jump in and make it better.” 5 So he dropped out and decided to try the internet instead.

| Location: 15 | Date: October 10, 2016 |

one. If he were following the dot-com millionaire rulebook, he’d have known that what you’re supposed to do after hitting it big during the 90s boom is either retire off into the sunset of leisure and angel investing, or if you still have ambition, start a new company with someone else’s money. But Musk doesn’t tend to follow normal rulebooks, and he plunged three quarters of his net worth into his new idea, an outrageously bold plan to build essentially an online bank—replete with checking, savings, and brokerage accounts—called X.com. This seems less insane now, but in 1999, an internet startup trying to compete with the large banks was unheard of.

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This would have been more okay if the global economy hadn’t suddenly crashed, hitting the automotive industry the absolute hardest and sucking dry any flow of investments into car companies, especially new and unproven ones. And Tesla was running out of money fast. During this double implosion of his career, the one thing that held stable and strong in Musk’s life was his marriage of eight years, if by stable and strong you mean falling apart entirely in a soul-crushing, messy divorce. Darkness.

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But here’s the thing—Musk is not a fool, and he hadn’t built bad companies. He had built very, very good companies. It’s just that creating a reliable rocket is unfathomably difficult, as is launching a startup car company, and because no one wanted to invest in what seemed to the outside world like overambitious and probably-doomed ventures—especially during a recession—Musk had to rely on his own personal funds. PayPal made him rich, but not rich enough to keep these companies afloat for very long on his own. Without outside money, both SpaceX and Tesla had a short runway. So it’s not that SpaceX and Tesla were bad—it’s that they needed more time to succeed, and they were out of time. And then, in the most dire hour, everything turned around.

| Location: 19 | Date: October 10, 2016 |

But here’s the thing—Musk is not a fool, and he hadn’t built bad companies. He had built very, very good companies. It’s just that creating a reliable rocket is unfathomably difficult, as is launching a startup car company, and because no one wanted to invest in what seemed to the outside world like overambitious and probably-doomed ventures—especially during a recession—Musk had to rely on his own personal funds. PayPal made him rich, but not rich enough to keep these companies afloat for very long on his own. Without outside money, both SpaceX and Tesla had a short runway. So it’s not that SpaceX and Tesla were bad—it’s that they needed more time to succeed, and they were out of time. And then, in the most dire hour, everything turned around.

| Location: 19 | Date: October 10, 2016 |

First, in September of 2008, SpaceX launched their fourth rocket—and their last one if it didn’t successfully put a payload into orbit—and it succeeded. Perfectly. That was enough for NASA to say “fuck it, let’s give this Musk guy a try,” and it took a gamble, offering SpaceX a $1.6 billion contract to carry out 12 launches for the agency. Runway extended. SpaceX saved. The next day, on Christmas Eve 2008, when Musk scrounged up the last money he could manage to keep Tesla going, Tesla’s investors reluctantly agreed to match his investment. Runway extended. Five months later, things began looking up, and another critical investment came in—$50 million from Daimler. Tesla saved. While 2008 hardly marked the end of the bumps in the road for Musk, the overarching story of the next seven years would be the soaring, earthshaking success of Elon Musk and his companies.

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Musk has said he has a strict “no assholes” hiring policy, and I could see that at work in these meetings.

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There’s even an undertone of integrity in Musk’s tyrannical demands of workers, because while he may be a tyrant, he’s not a hypocrite. Employees pressured to work 80 hours a week tend to be less bitter about it when at least the CEO is in there working 100.

| Location: 30 | Date: October 10, 2016 |

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