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MAT. NUMBER: UA/BUP2023/000047
COURSE CODE: GST 211 ASSIGNMENT - SECOND CA
Elon Musk, born in Pretoria, South Africa, is one of the most successful entrepreneurs of all time. Musk
has achieved global fame as the chief executive officer (CEO) of electric automobile maker Tesla (TSLA)
and the private space company SpaceX. Musk was an early investor in several tech companies, and in
October 2022, he completed a deal to take X (formerly Twitter) private.1

His success and personal style have given rise to comparisons to other colorful tycoons from U.S. history,
including Steve Jobs, Howard Hughes, and Henry Ford. He was named the richest person in the world in
2021, surpassing Amazon (AMZN) founder Jeff Bezos. However, as of June 22, 2024, Bezos has regained
the title of richest man on Earth, making Musk the second richest man.

I will briefly write about the life of the man (Elon Musk), who has scaled the pinnacle of the business
world and also some great key takeaways;

 Elon Musk being the charismatic CEO of electric car maker Tesla and rocket manufacturer
SpaceX.
 Following a contested process, Musk completed a deal to buy the company behind X in October
2022, becoming the owner of the social media company.
 Born and raised in South Africa, Musk spent time in Canada before moving to the United States.
 Graduated from the prestigious University of Pennsylvania in physics and business, Musk started
getting his feet wet as a serial tech entrepreneur with early successes like Zip2 and X.com, which
merged with a company that became PayPal.
 Musk has behaved eccentrically from time to time.

Early Life and Education

Elon Reeve Musk was born in 1971 in Pretoria, South Africa, the oldest of three children. His father was
a South African engineer, and his mother was a Canadian model and nutritionist. After his parents
divorced in 1980, Musk lived primarily with his father. He would later dub his father “a terrible human
being...almost every evil thing you could possibly think of, he has done.

Entrepreneurial Venture, and product portfolio.

Musk was 24 years old when he moved to California to pursue a Ph.D. in applied physics at Stanford
University. But, with the Internet exploding and Silicon Valley booming, Musk had entrepreneurial
visions dancing in his head. He left the Ph.D. program after just two days.

X.com

In 1995, with $15,000 and his younger brother Kimbal at his side, Musk started Zip2, a web software
company that would help newspapers develop online city guides.

In 1999, Zip2 was acquired by Compaq Computer Corporation for $307 million in cash and $34 million
worth of stock options. Musk used his Zip2 buyout money to create X.com, a fintech venture before that
term was in wide circulation.

X.com merged with a money transfer firm called Confinity, and the resulting company came to be
known as PayPal. Peter Thiel ousted Musk as PayPal CEO before eBay (EBAY) bought the payments
company for $1.5 billion, but Musk still profited from the buyout via his 11.7% PayPal stake.

U.S. Securities and Exchange Commission. “eBay to Acquire PayPal.”

“My proceeds from PayPal after tax were about $180 million,” Musk said in a 2018 interview. “$100
(million) of that went into SpaceX, $70 (million) into Tesla, and $10 (million) into SolarCity. And I literally
had to borrow money for rent.”

Tesla

Musk became involved with the electric cars venture as an early investor in 2004, ultimately
contributing about $6.3 million, to begin with, and joined the team, including engineer Martin Eberhard,
to help run a company then known as Tesla Motors. Following a series of disagreements, Eberhard was
ousted in 2007, and an interim CEO was hired until Musk assumed control as CEO and product architect.
Under his watch, Tesla has become the world’s most valuable automaker.

In addition to producing electric vehicles, Tesla maintains a robust presence in the solar energy space,
thanks to its acquisition of SolarCity. The company currently produces rechargeable solar batteries and
other solar power equipment. The Powerwall is a battery developed for home backup power. Tesla also
produces commercial energy infrastructure including grid management programs.
SpaceX

Musk used most of the proceeds from his PayPal stake to found Space Exploration Technologies Corp.,
the rocket's developer commonly known as SpaceX. By his own account, Musk spent $100 million to
found SpaceX in 2002.

Under Musk’s leadership, SpaceX landed several high-profile contracts with the U.S. National
Aeronautics and Space Administration (NASA) and the U.S. Air Force to design space launch rockets.
Musk has publicized plans to send an astronaut to Mars by 2025 in a collaborative effort with NASA.

The company was founded in March 2006 as Twitter by Jack Dorsey, Noah Glass, Biz Stone, and Evan
Williams. Originally a private company, it went public in November 2013. It raised $1.8 billion through its
initial public offering (IPO).

Musk joined the site in June 2009. A frequent poster on the messaging network, Musk disclosed a 9.2%
stake in Twitter in March 2022. The company responded by offering Musk a seat on the board, which he
accepted before declining days later. Musk then sent a bear hug letter to the board proposing to buy the
company at $54.20 per share.

The company’s board adopted a poison pill provision to discourage Musk from accumulating an even
larger stake, but they ultimately accepted Musk’s offer after he disclosed $46.5 billion in committed
financing for the deal in a securities filing.

In July 2022, Musk attempted to cancel the deal, arguing that X had failed to provide certain information
regarding fake accounts. The company sued Musk to require him to complete the deal.

ABC News. "A Timeline of Elon Musk’s Tumultuous Twitter Acquisition."

After months of legal wrangling, the billionaire’s plan to buy the social media platform came to fruition,
and Musk took control of the company on October 28, 2022. The company was renamed X the following
year.
UNCOVERING THE SECRETS OF ELON MUSK'S SUCCESS

What are the key factors that led to Musk's success in entrepreneurship? Musk's success in
entrepreneurship is attributed to his risk-taking, innovation, long-term vision, and ability to adapt and
learn from failure.

 The Role of Risk-Taking in Elon Musk's Success

One of the key factors in Musk’s success has been his willingness to take risks. Musk has often
invested his own money in ventures that others have deemed too risky, such as funding space
missions to Mars or investing heavily in electric car technology. While not every risk has paid off,
Musk's willingness to take chances has helped him achieve some of his most significant victories.

Another aspect of Musk's risk-taking is his ability to pivot and adapt when things don't go as
planned. For example, when SpaceX experienced multiple rocket failures early on, Musk and his
team didn't give up. Instead, they analyzed the problems, made necessary changes, and
continued to push forward. This resilience and flexibility have been crucial to Musk's success.

It's also worth noting that Musk's risk-taking is not reckless. He carefully weighs the potential
risks and benefits of each decision, and he surrounds himself with a team of experts who can
help him make informed choices. This calculated approach to risk-taking has allowed Musk to
make bold moves while minimizing the chances of catastrophic failure.

 Elon Musk's Leadership Style and Management Techniques

Musk is known for his hands-on approach to leadership, and is heavily involved in the day-to-day
operations of his businesses. He is committed to establishing a company culture that values
innovation and drives for excellence. While Musk can be a tough boss, he is also known for his
passion and commitment to his businesses, which has inspired many employees to work harder
for him.

One of Musk's management techniques is to encourage his employees to take risks and think
outside the box. He believes that failure is a necessary part of the innovation process, and
encourages his employees to learn from their mistakes and keep pushing forward. This
approach has led to some of the most groundbreaking advancements in technology, such as
SpaceX's reusable rockets and Tesla's electric cars.

Another aspect of Musk's leadership style is his focus on long-term goals. He is not afraid to
make bold moves and invest in projects that may not pay off for years to come. For example, his
vision for SpaceX includes colonizing Mars, a goal that may not be achieved for decades.
 However, Musk believes that by setting ambitious goals and working tirelessly towards them, his
companies can make a significant impact on the world.

 The Importance of Innovation in Elon Musk's Success

Innovation has been key to Musk's success, with his companies consistently pushing the
boundaries of what is possible. Musk actively encourages his employees to think beyond the
status quo and explore new ideas and innovations. His long-term vision for SpaceX and Tesla
emphasizes innovating for the future, rather than simply replicating what has been done in the
past.

One example of Musk's commitment to innovation is his development of reusable rockets at

WHAT PROBLEM HAS THE ENTREPRENEUR ENCOUNTERED IN THE PAST

One of Elon Musk's most noteworthy achievements is Tesla Motors, the electric vehicle (EV) company
that has disrupted the traditional automobile industry. Founded in 2003, Tesla's mission is to accelerate
the transition to sustainable transportation by manufacturing high-quality, mass-market EVs.

However, Tesla's road to success was rife with challenges. The company encountered skepticism from
the automobile industry, production delays, and financial difficulties. Musk invested his own funds to
keep the company afloat and faced criticism from the media and investors. Despite these obstacles,
Musk remained resolute in his vision and refused to give up.

Through unwavering innovation, stringent quality control, and strategic marketing efforts, Tesla
gradually gained traction in the EV market. Today, Tesla is a global leader in electric vehicles, with a
market capitalization that surpasses that of many established automakers. Its vehicles have set new
benchmarks for EV performance, range, and safety, and Tesla has become a symbol of sustainable
transportation.

Failure with SpaceX

SpaceX spent 16 months trying to prove it was possible to land one of its rockets on its oceangoing
recovery drone ships. The first attempt took place on January 10, 2015. It was decently successful,
actually, as the company demonstrated the levels of precision control it would need to get the rocket
within mere yards of landing on the ship. The key phrase there is “within mere yards.”

It wasn’t until April 28, 2016, for SpaceX to achieve the first of three consecutive successful landings on
the drone-ship. The try in June for four in a row ended with the rocket in flames, however, this did not
discourage Elon Musk and his crew as SpaceX. They instead took these failures and analyzed them to
learn from their mistakes instead of being discouraged.

Engineer Kate Tice might as well have been speaking for Musk when she offered this take on the failure:
“Important thing to keep in mind is that we did receive a lot of really good data from this[SpaceX
failure].” SpaceX’s failure didn’t stop Musk from envisioning the future and “sending people to Mars by
2024”. "I think if you're going to choose a place to die, then Mars is probably not a bad choice," he said.

In sum, despite all failures and destroyed rockets Musk’s motivation, perseverance, and risk takings are
the reason why he is still working towards his goals with high motivation, in addition to being a
successful entrepreneur and a role model.

THINGS TO DO AVOID PROBLEMS IN ENTREPRENEURSHIP TO DO BETTER

Here are some ways to avoid failures or problems in entrepreneurship:

 Have a business plan: A business plan can help you identify potential failures and prepare
strategies to minimize them. It can also help you stay on track and increase revenue.
 Focus on customers: Ask your customers directly what they want and need.
 Manage your finances: Managing your finances is an important way to avoid failure.
 Hire a good team: Having a good team can help you avoid failure.
 Market your business: Marketing your business is an important way to avoid failure.
 Manage your risks: Managing your risks is an important way to avoid failure.
 Have a growth mindset: Setbacks and failures are inevitable, but you can learn from them and
use them as an opportunity to grow.
 Don't expand too fast: While expanding your business is a smart goal, growing too quickly can
inhibit your company's success.

REFERENCES;

https://www.investopedia.com/articles/personal-finance/061015/how-elon-musk-became-elon-
musk.asp#:~:text=Elon%20Musk%20is%20the%20charismatic,of%20the%20social%20media
%20company.

https://advisorycloud.com/blog/uncovering-the-secrets-of-elon-musks-success#:~:text=What%20are
%20the%20key%20factors,adapt%20and%20learn%20from%20failure.

https://egyptinnovate.com/en/articles/elon-musk-no-i-don%E2%80%99t-give-i%E2%80%99d-have-be-
dead-or-completely-incapacitated

https://www.linkedin.com/pulse/from-setbacks-success-inspiring-journey-elon-musk-siva-
ganapathi#:~:text=The%20company%20encountered%20skepticism%20from,and%20refused%20to
%20give%20up.
https://www.linkedin.com/pulse/7-most-common-reasons-why-businesses-fail-global-wealth-
hub#:~:text=One%20of%20the%20biggest%20reasons%20why%20businesses,sure%20that%20it%20is
%20still%20on%20track.