The Stock Market Game: Tesla’s Elon Musk Biggest Entrepreneurial Mistakes
Elon Musk is one of the most famous names in the business world. Musk holds different citizenships in three countries – South Africa, the United States, and Canada. He co-founded Paypal, Tesla, SpaceX, and Neuralink. He has a net worth amounting to $21.2 billion. Further, Musk is an outspoken and eccentric entrepreneur.
He’s having his time, and we could safely include him in the group of successful entrepreneurs. Still, nobody’s perfect, Musk himself made a lot of mistakes. Some of Musk’s mistakes aren’t simple business blunders but acts that negatively affected the global stock market.
For instance, his social media presence proves how difficult he is to investors. Recently, Twitter locked him out after offering Bitcoin to followers and posting inappropriate anime graphic. At first, Twitter thought someone hacked Musk’s account. But upon reopening the account, Musk’s have that kind of personality.
Elon Musk depends on investments in keeping his businesses operational. Behind those investments are worried shareholders. He made various critical mistakes which affected the global stock market negatively. Let’s look at some of them.
The Roadster (2008)
In 2008 Tesla launched their first car, was it good? According to Jeremy Clarkson, BBC Broadcaster, it was as a poorly-run science fair project. That comment angered Musk. But eight years later he admitted that it was a huge mistake. There are various technical and scientific reason for the failure. The technology wasn’t as Musk’s expected. The cars are self-destructive at the launch party.
The stock market had a dive after the disastrous launch. It barely took Tesla out of the deep dive. The company lost money for two straight years.
SpaceX Rocket (2016)
SpaceX rocket launch shocked the viewers when the rocket blew up while fueling. Musk announced on Twitter that the explosion was a “difficult and complex failure.” The situation was too bad, making Musk think that someone shot the rocket. He theoretically believes that someone goes up the roof bringing a high-powered rifle, then took shot in a precise spot necessary for it to blow up. That made him request an FAA investigation for a mysterious gunman.
Soon, without any evidence supporting his theory, he concedes that it was likely his company’s fault. Investors won’t easily take such failure, and that was where his another big dive occurred. But, looking at the brighter side, that scenario brought SpaceX to improve security in case the shooting theory did happen.
Privatization Issue (2018)
Elon Musk sued by SEC due to a foolish tweet. This same year, Musk tweeted regarding his thought or plan on taking Tesla private at $420 per share. He pointed out, wrongly, that funding was secured. But in reality, the stock hasn’t reached $420 yet. The SEC then pinned Musk for the “misleading” tweets. Then they’ve sued him for putting harm to shareholders. SEC then settled this issue with Musk, with a $20 million fine.
$20 million might seem a huge amount but that was just a less than half percent of his net worth. He also stepped down as chairman for three years. Nevertheless, this issue will still make investors think for it will stay seen.
Defamation Lawsuit (2018)
Recently in Thailand, a cave collapse that twelve Thai teens were trapped. Vernon Unsworth, a British diver, assisted the rescue mission and refused to use Musk’s mini-submarine for the rescue. Unsworth believed the mini-sub was a “PR stunt” and wouldn’t work.
Musk then got angry and overreacted. Tweeted accusations about Unsworth being a pedophile. Accusations being a lie, Musk got a lot of condemnation criticism about his malicious tweet. He then stated and “hoped” Unsworth will sue him. Unsworth then turned his wish into reality with a defamation lawsuit last September.
Illegal Drug Use revelation by Azealia Banks (2018)
Weird news related to Musk shared by rapper Azealia Banks while spending a weekend at Musk’s mansion. Azealia stayed to work with the musician known as Grimes who’s Musk’s new girlfriend. Azelia did tweet her observation, including an alleged drug use, hair plugs, phone tapping and more. The rapper herself is known for lying, so this story will still need proof and not just story coming from a single side.
Overall, Musks have been making risky actions, which is critical being him as a well-known business figure. Until now, investors reassure Musk’s stability.
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