Elon Reeve Musk, born on June 28, 1971, is a prominent entrepreneur and investor with a diverse portfolio of ventures. He serves as the founder, chairman, CEO, and chief technology officer of SpaceX. Additionally, Musk is an angel investor, former chairman, product architect, and CEO of Tesla, Inc.
He holds key positions as owner, chairman, and CTO of X Corp., founder of the Boring Company and xAI, co-founder of Neuralink and OpenAI, and president of the Musk Foundation. As of December 2023, Elon Musk is recognized as the wealthiest individual globally, boasting an estimated net worth of US$232 billion according to the Bloomberg Billionaires Index and $254 billion according to Forbes.
The bulk of his wealth is attributed to ownership stakes in Tesla and SpaceX.
Born in Pretoria, South Africa, Musk briefly attended the University of Pretoria before relocating to Canada at the age of 18. He acquired Canadian citizenship through his mother, who was born in Canada. Two years later, Musk enrolled at Queen’s University in Kingston, Canada, before transferring to the University of Pennsylvania, where he earned bachelor’s degrees in economics and physics.
In 1995, Musk moved to California to attend Stanford University but dropped out after just two days to co-found Zip2, an online city guide software company, with his brother Kimbal. Compaq acquired Zip2 for $307 million in 1999.
Subsequently, Musk co-founded X.com, a direct bank, which later merged with Confinity in 2000 to form PayPal.
In 2002, eBay acquired PayPal for $1.5 billion. Using $100 million from this transaction, Musk founded SpaceX in the same year, focusing on spaceflight services. He became an early investor in the Tesla Motors (now Tesla, Inc.)
in 2004, eventually assuming the roles of chairman and product architect, and later becoming CEO in 2008. Musk played a role in the creation of SolarCity in 2006, a solar-energy company acquired by Tesla in 2016, which transformed into Tesla Energy. In 2013, he proposed the hyperloop high-speed vactrain transportation system and co-founded OpenAI in 2015.
Musk’s ventures extended to the realm of neurotechnology with the founding of Neuralink and tunnel construction with the Boring Company in 2016. In In In 2022, he acquired Twitter for $44 billion, subsequently merging it into the newly created X Corp. and rebranding the service as X in the following year. In March 2023, Musk founded xAI, an artificial intelligence company.
Despite his success, Musk has become a polarizing figure due to controversial views. He has faced criticism for making unscientific and misleading statements, including COVID-19 misinformation, transphobia, and the promotion of antisemitic conspiracy theories.
His ownership of Twitter has also been contentious, marked by layoffs, increased hate speech, misinformation, and changes to Twitter Blue verification. In 2018, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Musk for falsely claiming to have secured funding for a private takeover of Tesla. As part of the settlement, Musk stepped down as Tesla’s chairman and paid a $20 million fine.
Early Life and Education
Childhood and Family
Elon Reeve Musk came into the world on June 28, 1971, in Pretoria, the administrative capital of South Africa. With roots tracing back to British and Pennsylvania Dutch ancestry, Musk’s diverse heritage played a role in shaping his identity. His mother, Maye Musk (née Haldeman), a model and dietitian hailing from Saskatchewan, was Canada, was raised in South Africa. On the paternal side, his father, Errol Musk, held various roles, including electromechanical engineer, pilot, sailor, consultant, and property developer. Errol had a stake in a Zambian emerald mine near Lake Tanganyika and owned a rental lodge at the Timbavati Private Nature Reserve. Musk has a younger brother named Kimbal and a younger sister named Tosca.
Growing up, Musk’s family enjoyed affluence, and his father, Errol, was elected to the Pretoria City Council as a representative of the anti-apartheid Progressive Party. Musk and his siblings shared their father’s aversion to apartheid. Musk’s maternal grandfather, Joshua N. Haldeman, an American-born Canadian, embarked on record-breaking journeys to Africa and Australia with his family in a single-engine Bellanca airplane.
The family dynamic shifted in 1980 when Musk’s parents divorced. Musk chose to live primarily with his father, a decision he later regretted, leading to estrangement between father and son. Musk has a paternal half-sister and a half-brother.
Musk’s journey wasn’t without challenges. In one incident, Musk faced physical repercussions after insulting a boy whose father had tragically committed suicide. Despite the severity of Musk’s injuries, his father showed little sympathy and criticized him for his behaviour. Musk’s love for reading, encompassing works such as “Benjamin Franklin: An American Life,” “Lord of the Flies,” the Foundation series, and “The Hitchhiker’s Guide to the Galaxy,” played a role in shaping his intellectual curiosity.
Musk’s interest in technology emerged early on. At the age of ten, he delved into computing and video games, teaching himself programming using the VIC-20 user manual. By twelve, Musk had already entered the world of entrepreneurship, selling his BASIC-based game, Blastar, to PC and Office Technology magazine for approximately $500.
Education
Musk attended Waterkloof House Preparatory School, Bryanston High School, and Pretoria Boys High School, graduating with a 61 in Afrikaans and a B in senior math. He applied for a Canadian passport through his Canadian-born mother to ease immigration to the U.S. While waiting, he spent five months at the University of Pretoria.
In June 1989, Musk moved to Canada, residing with a second cousin in Saskatchewan for a year, working odd jobs at a farm and lumber mill. He then enrolled at Queen’s University in 1990, later transferring to the University of Pennsylvania, where he earned a Bachelor of Arts in physics and a Bachelor of Science in economics. Despite Musk’s claim of graduating in 1995, UPenn states it awarded the degrees in 1997.
Facing financial challenges, Musk hosted large parties to fund tuition and drafted a business plan for an electronic book-scanning service. In 1994, he interned at Pinnacle Research Institute and Rocket Science Games in Silicon Valley. Accepted into a Stanford PhD program in materials science in 1995, Musk opted for the Internet industry, dropping out and applying to Netscape, though reportedly receiving no response.
Business career
Zip2
In 1995, Elon Musk, along with his brother Kimbal and Greg Kouri, co-founded Zip2 (originally Global Link Information Network). Financed through a $200,000 round, 10% contributed by his father, the company created an Internet city guide marketed to newspapers, securing contracts with The New York Times and the Chicago Tribune. Compaq acquired Zip2 for $307 million in cash in 1999, netting Musk $22 million for his 7% share.
X.com and PayPal
In 1999, Musk co-founded X.com, an online financial services company, with $12 million from the Zip2 acquisition. Despite its initial success, Musk was replaced as CEO. X.com merged with Confinity in 2000, forming PayPal. Musk returned as CEO but was later ousted. PayPal was acquired by eBay in 2002 for $1.5 billion in stock.
SpaceX
In 2002, Musk founded SpaceX with $100 million of his own money. After overcoming early challenges, SpaceX achieved milestones like launching Falcon 1 in 2008 and the first crewed flight to the ISS in 2020.
Starlink
SpaceX initiated the Starlink project in 2015, deploying low-Earth-orbit satellites for global Internet access. Musk donated Starlink terminals to Ukraine during the Russian invasion, costing SpaceX $80 million annually.
Tesla
Musk joined Tesla in 2004, investing $6.5 million and becoming the majority shareholder. He assumed leadership in 2008 and played a pivotal role in Tesla’s growth. The company’s stock surged, reaching a $1 trillion market cap in 2021. Musk proposed and executed a Twitter-driven sale of 10% of his Tesla stock in 2021, generating $16.4 billion. In 2022, the SEC investigated Musk and his brother for possible insider trading. Tesla expanded its vehicle lineup and unveiled a robot named Optimus in 2022. In June 2023, Musk expressed interest in investing in India.
SEC and shareholder lawsuits over tweets:
In 2018, Musk faced SEC action for a misleading tweet on Tesla going private. He settled for $20 million, stepping down as Tesla chairman but remaining CEO. In 2022, a federal judge ruled the tweet false, but in February 2023, a jury found Musk and Tesla not liable.
SolarCity and Tesla Energy:
Musk backed SolarCity, later acquired by Tesla for $2 billion in 2016, forming Tesla Energy. Shareholder lawsuits ensued, but Musk was ruled in favor two years later.
Neuralink:
In 2016, Musk co-founded Neuralink with a $100 million investment. The startup aims to integrate the human brain with AI. Human trials are set to begin in 2023.
The Boring Company:
Founded in 2017, Musk’s Boring Company constructs tunnels for high-speed transit. Projects in Chicago and West LA were canceled, but a Las Vegas tunnel was completed in 2021.
Twitter / X:
Musk acquired a 9.2% stake in Twitter, sparking a $44 billion takeover bid in 2022. After initial complications, Musk officially acquired Twitter in October 2022. He later stepped down as CEO in 2023 after promising to do so in a Twitter poll. Musk faced criticism for content moderation changes and releasing internal Twitter documents.
X Lawsuit:
In November 2023, Musk’s company X filed a lawsuit against Media Matters, alleging manipulation of the X platform through accounts following major brands and refreshing feeds to find ads next to extremist posts.
Leadership Approach
Elon Musk is often characterized as a hands-on leader, self-identifying as a “nano-manager” and earning the label of a micromanager. Described as having an absolutist style by The New York Times, Musk eschews formal business plans, preferring an “iterative design methodology” and demonstrating a high tolerance for failures when tackling engineering challenges.
Musk’s decision-making style is marked by a willingness to embark on ambitious, risky, and expensive projects against the advice of his advisors. Notable instances include the removal of the front-facing radar from Tesla Autopilot. Additionally, his commitment to vertical integration has led to in-house production for most of his companies. While this approach resulted in cost savings for SpaceX’s rockets, it has introduced usability challenges for Tesla’s software.
The manner in which Musk interacts with his employees is often described as a mix of encouragement and discipline, colloquially referred to as a “carrot and stick” approach. He communicates directly with his workforce through mass emails, rewarding those who provide constructive criticism. However, he has also been known to impulsively threaten, use strong language, and terminate employees. Musk sets high expectations for his team, expecting long work hours—sometimes up to 80 hours per week.
Strategic decisions regarding personnel include the implementation of strict non-disclosure agreements for new hires and occasional mass layoffs, as seen during the Model 3 “production hell” in 2018. In 2022, Musk announced plans to terminate 10 percent of Tesla’s workforce due to economic concerns. During the same period, he suspended remote work at SpaceX and Tesla, issuing a threat to fire employees who did not adhere to a 40-hour workweek in the office.
Opinions on Musk’s leadership style are divided. Some praise it, attributing Tesla’s success and other achievements to his leadership. However, critics perceive Musk as lacking empathy, citing instances where his managerial decisions demonstrate a “lack of human understanding.” Anecdotes in the 2021 book Power Play describe Musk berating employees, and The Wall Street Journal reported engineers resigning due to concerns that Musk’s insistence on branding vehicles as “self-driving” put customer lives at risk.
Additional Pursuits
Musk Foundation
Elon Musk serves as the president of the Musk Foundation, established in 2001. The foundation’s primary objectives are to deploy solar-power energy systems in disaster-stricken areas, promote research, development, and advocacy in various domains, including human space exploration, pediatrics, renewable energy, and safe artificial intelligence. Additionally, it supports educational initiatives in science and engineering.
As of 2020, the Musk Foundation has made a total of 350 donations, with approximately half directed to scientific research or educational nonprofits. Beneficiaries include notable organizations such as the Wikimedia Foundation, the University of Pennsylvania (Musk’s alma mater), and Big Green, a nonprofit founded by Musk’s brother Kimbal. Between 2002 and 2018, the foundation contributed $25 million to nonprofit organizations, with almost half of that going to Musk’s OpenAI when it operated as a nonprofit.
Elon Musk pledged to the Giving Pledge in 2012, committing to donate the majority of his wealth to charitable causes. He has also endowed prizes at the X Prize Foundation, with a notable contribution of $100 million to incentivize advancements in carbon capture technology.
While the Musk Foundation has faced criticism for the perceived modest amount of wealth donated, Musk made a significant donation of $5.7 billion in Tesla shares to charity in November 2021, specifically to his own foundation. This contribution elevated the Musk Foundation’s assets to $9.4 billion by the end of 2021, enabling it to disburse $160 million to nonprofits that year.
Moreover, the Musk Foundation earmarked $100 million of its donations to establish a new higher education institution, humorously dubbed the Texas Institute of Technology and Science by Musk.
Hyperloop
In August 2013, Elon Musk unveiled plans for a vactrain, or vacuum tube train, and assigned a team of engineers from SpaceX and Tesla to lay the groundwork and create initial designs. This initiative later materialized into the concept known as the hyperloop. The alpha design, detailed in a whitepaper shared on Tesla and SpaceX blogs, proposed a potential transportation system between the Greater Los Angeles Area and the San Francisco Bay Area at an estimated cost of $6 billion, making hyperloop travel economically competitive for long distances.
Musk initiated a design competition in 2015 for students to build hyperloop pods, with a SpaceX-sponsored mile-long track for testing. The competition took place in January 2017, and Musk also announced a tunnel project with Hawthorne Municipal Airport as its endpoint. Although there were mentions of a hyperloop connecting New York City to Washington, D.C., with stops in Philadelphia and Baltimore, some aspects of this project were later removed from the Boring Company website in 2021.
However, the tunnel project to Hawthorne was discontinued in 2022 and repurposed into parking spaces for SpaceX employees. Elon Musk envisioned the hyperloop as a catalyst for reevaluating traditional high-speed train proposals, especially those considered in California at the time.
OpenAI and xAI
In December 2015, Elon Musk co-founded OpenAI, a non-profit research company focused on artificial general intelligence (AGI) development with a commitment to ensuring its safety and benefits for humanity. Musk initially pledged $1 billion to fund OpenAI, but by 2023, he clarified via Twitter that he had contributed a total of $100 million.
In 2018, Musk stepped down from the OpenAI board to avoid potential conflicts of interest with his role as Tesla’s CEO, as Tesla increasingly delved into AI through initiatives like Tesla Autopilot. Since then, OpenAI has made significant strides in machine learning, producing advanced neural networks like GPT-3 and DALL-E.
On July 12, 2023, Elon Musk launched xAI, an artificial intelligence company aiming to develop a generative AI program. The company reportedly hired engineers from Google and OpenAI and secured funding from investors in SpaceX and Tesla.
Tham Luang Cave Rescue and Defamation Case
In July 2018, Elon Musk directed his employees to construct a mini-submarine to assist in the rescue of children trapped in a flooded Thai cave. The submarine, built by SpaceX and Boring Company engineers, was delivered to Thailand, but it was not used in the rescue operation as the majority of the children had already been rescued using different methods.
Following the rescue, Vernon Unsworth, a key figure in the operation, criticized Musk’s mini-submarine on CNN, prompting Musk to refer to him as a “pedo guy” on Twitter. Musk later apologized and deleted the tweets but continued to face criticism, including a defamation lawsuit filed by Unsworth. In December 2019, the jury ruled in favor of Musk, finding him not liable for defamation.
2018 Cannabis Incident
In September 2018, Elon Musk appeared on The Joe Rogan Experience podcast, where he was seen sampling a cigar laced with cannabis. In 2022, Musk mentioned that he and other SpaceX employees underwent random drug tests for about a year following the incident, as mandated by the Drug-Free Workplace Act of 1988 for Federal contractors. Musk had previously stated in a 2019 60 Minutes interview that he did not smoke pot.
Music
In April 2019, Musk released a rap track titled “RIP Harambe” through Emo G Records on SoundCloud. The track, performed by Yung Jake, addressed the killing of Harambe the gorilla and the subsequent internet attention surrounding the incident. In the following year, Musk released an EDM track called “Don’t Doubt Ur Vibe,” featuring his own lyrics and vocals. While opinions on the tracks varied, with some describing them as unremarkable and others finding merit, Musk continued to express his creative interests in the music domain.
Private Jet
Elon Musk owns and uses a private jet associated with Falcon Landing LLC, a SpaceX-affiliated company. In 2003, Musk expressed a preference for the L-39 Albatros as his favorite plane. However, his frequent use of the private jet, which covered over 150,000 miles in 2018, has faced criticism due to its environmental impact stemming from fossil fuel consumption.
Musk’s private jet usage is tracked on social media through an account known as ElonJet. In December 2022, the Twitter version of this account was blocked after Musk claimed that his son had been harassed by a stalker who traced the jet’s landing location. Consequently, Musk banned the ElonJet account on Twitter along with accounts of journalists reporting on the incident, citing it as a response to what he perceived as doxxing. However, the police found no evidence linking the account to the alleged stalker, and Musk later conducted a Twitter poll that resulted in the reinstatement of the blocked accounts.
Wealth
Net Worth
Elon Musk’s financial journey includes various milestones. Notably, he earned $175.8 million when PayPal was sold to eBay in October 2002, marking an early success. He first appeared on the Forbes Billionaires List in 2012 with a net worth of $2 billion.
The year 2020 witnessed significant growth in Musk’s wealth, starting with a net worth of $27 billion and ending with a remarkable increase of $150 billion. The surge was primarily driven by his ownership of approximately 20% of Tesla stock. However, Musk’s net worth exhibited volatility during this period, experiencing a single-day drop of $16.3 billion on September
8, 2020, which was reportedly the largest single-day loss for an individual in the history of the Bloomberg Billionaires Index.
In 2021, Elon Musk’s wealth continued to climb, surpassing that of other billionaires like Jeff Bezos and Bernard Arnault. In November 2021, Musk achieved the title of the world’s richest person, with a net worth exceeding $300 billion. However, this ranking was subject to fluctuations based on stock market dynamics and Tesla’s valuation.
By 2022, Musk’s net worth surpassed $300 billion, maintaining his status as one of the wealthiest individuals globally. His wealth is largely tied to the performance of Tesla and SpaceX, given his substantial ownership stakes in both companies.
Taxes and Stock Sales
In September 2021, reports emerged that Elon Musk had sold $6.9 billion worth of Tesla stock, triggering discussions about potential tax obligations. Musk responded on Twitter, explaining that he would pay more than $11 billion in taxes and that he had no cash flow, as his wealth was tied to stock holdings. He also expressed support for a wealth tax, emphasizing the importance of a fair and progressive tax system.
Musk’s approach to taxes and wealth distribution has been a topic of public discourse. While some appreciate his openness about tax payments and advocacy for certain tax reforms, others critique the effectiveness of voluntary philanthropy compared to systemic changes.
Personal Assets
Elon Musk’s real estate portfolio includes various high-value properties. In 2015, he purchased a $17 million estate in Bel Air, Los Angeles. The estate features a 7-bedroom mansion, a two-story library, a home theater, and a tennis court. In 2020, he listed several of his homes for sale, including those in Bel Air and Hillsborough, and stated his intention to “own no house.” Despite these listings, Musk has retained ownership of some properties, such as his Gene Wilder House, purchased for $7 million in 2013.
Musk is known for his eclectic car collection, which has included vehicles like the Lotus Esprit submarine car used in the James Bond film “The Spy Who Loved Me.” His car collection also features a Ford Model T, a Jaguar E-Type, and a McLaren F1. In 2020, Musk mentioned selling “almost all physical possessions” and later sold several of his homes.
Social Media Presence
Elon Musk is an active user of Twitter, where he shares updates on his companies, thoughts on technology and science, and engages with his followers. His tweets often have a significant impact on financial markets, causing fluctuations in stock prices of Tesla and other companies. Musk’s unconventional approach to communication has both supporters and critics, with some praising his direct and unfiltered style, while others express concerns about the potential consequences of his statements.
Cryptocurrency and NFTs
Musk has played a prominent role in the cryptocurrency space. Tesla, under Musk’s leadership, invested $1.5 billion in Bitcoin in early 2021 and announced that it would accept Bitcoin as payment for Tesla vehicles. However, Musk later reversed this decision, citing environmental concerns related to Bitcoin mining. The announcement led to fluctuations in the value of Bitcoin.
Musk is also known for his interest in Dogecoin, a cryptocurrency that started as a meme. His tweets and comments about Dogecoin have influenced its price, and he has referred to himself as the “Dogefather.” Additionally, Musk has engaged with non-fungible tokens (NFTs), digital assets representing ownership or proof of authenticity of unique items. He sold a music-related NFT as a digital asset in 2021.
Criticism and Controversies
While Elon Musk has achieved widespread recognition and success, he has also faced criticism and controversies throughout his career. Some notable instances include:
- Labor Practices: Tesla, under Musk’s leadership, has faced scrutiny for its labour practices. Concerns include workplace injuries, long hours, and efforts to discourage unionization. Musk has responded to some criticisms by emphasizing the importance of innovation and expressing his commitment to improving workplace conditions.
- SEC Settlement: In 2018, Musk and the U.S. Securities and Exchange Commission (SEC) settled following Musk’s tweet about taking Tesla private at $420 per share and his misleading statements. The settlement required Musk to step down as Tesla’s chairman for at least three years, pay a $20 million fine, and implement new procedures and controls to oversee his communications about Tesla on platforms like Twitter.
- COVID-19 Statements: Musk’s comments and actions related to the COVID-19 pandemic have sparked controversy. He initially downplayed the severity of the virus and expressed scepticism about lockdown measures. His decision to keep Tesla’s Fremont factory open in violation of county orders also attracted attention.
- Unsworth Defamation Case: Elon Musk faced a defamation lawsuit from Vernon Unsworth, a key figure in the Tham Luang cave rescue, for calling him a “pedo guy” on Twitter. Musk was found not liable for defamation in this case.
- Twitter Activity: Musk’s use of Twitter has been a source of both admiration and concern. His tweets have led to market fluctuations, and some critics argue that his unfiltered communication style poses risks.
- Wealth and Philanthropy: Musk’s approach to wealth and philanthropy has been a topic of discussion. While he has made significant donations, some argue that his wealth could be used for broader societal impact, and there are differing opinions on the effectiveness of billionaire philanthropy.
- SEC Investigation into SolarCity Deal: In 2021, the SEC reportedly launched an investigation into Tesla over potential securities law violations related to the SolarCity deal. The investigation aims to determine whether Tesla adequately disclosed information to investors about the acquisition.
- SpaceX Culture: Musk’s leadership style and management approach at SpaceX have been both praised and criticized. Reports have emerged about intense work environments and high expectations at the company.
Despite these controversies, Elon Musk remains a prominent figure in the business and technology world, with a significant impact on various industries.
Summary
Elon Musk is a complex and influential figure whose contributions span multiple industries. As the CEO of SpaceX and Tesla, Musk has played a pivotal role in advancing space exploration, electric vehicles, and renewable energy. His other ventures, including Neuralink and The Boring Company, reflect his interest in cutting-edge technologies.
Musk’s impact extends beyond business, as he has been involved in initiatives like the Musk Foundation, focusing on philanthropy and societal challenges. His views on artificial intelligence, renewable energy, and the future of humanity have sparked discussions and debates.
At the same time, Musk has faced criticism and controversies, ranging from his statements on social media to labor practices at Tesla. His unconventional approach to communication and leadership has generated both admiration and concern.
Ultimately, Elon Musk’s influence reaches across technology, business, and culture, shaping conversations about the future of humanity, space exploration, and the role of technology in our lives. His dynamic and often polarizing presence in the public sphere ensures that Musk will continue to be a subject of fascination and scrutiny for years to come.