Elon Musk Unveils His Latest Taxpayer Boondoggle
It works like this:
1) He comes up with a big idea.
2) You pay for it.
3) He takes a huge cut.
4) It never becomes economically sustainable.
But that’s not the point. The point is putting extremely large amounts of money in Elon Musk’s pockets.
Most people don’t take the time to research the truth about companies and individuals. Only looking at the numbers in they’re bank accounts, they assume that just because someone has a couple more 0′s at the end of his monthly statements that success needs to be attached to that particular person’s name. Because at the end of the day in this 21st century mind set, it’s all about the money right, not about truth? If a cat has 9 lives, and some people have insatiable luck at casinos hitting the jackpot more than once, then you know its possible that there are business men in this world who just seem to never lose. It almost feels like no matter how many times that person looks like he is about to fail, he has luck on his side. Elon Musk is exactly this person. If you don’t believe me then lets look at his track record for starters.
When we first heard about Elon Musk, we were told that he was a genius. I mean just look at the data right. He has founded over 6 companies and his first two were both bought out. Zip2 was bought for $300 million by Compaq and Paypal was bought out by Ebay for 1.5 billion dollars. But the truth and facts behind any story is what I live for. Lets take a look at his companies Zip2 and Paypal and what exactly his involvements were in each of them and then we will take a look at his latest ventures Space X , Tesla, and Solar City.
Elon founded Zip2 in 1995 and by 1997 he was about to go under. Underfunded and poorly managed he was in desperate need of money and sold his majority stake in the company to a venture capitalist for only $3 million dollars. 1 year later the internet bubble began to brew and by 1999 every website with a ” .com ” was being bought out by a neighboring company who had benefited tremendously from their stocks 100 fold increase. Who benefited from one of these buyouts? Zip2 of course. Who bought them out? Compaq. Elon’s Zip2 was fortunately an internet related business at a time when any company with a .com name was perceived to be worth 1 billion dollars or more. Zip2 was bought out for $300 million dollars which netted Elon over $22 million dollars. Think about this for a second. Had it not been for the internet bubble or the ridiculous valuations that companies were being bought out for at the time, if Compaq had considered a buy out of Zip2 at any other time in history they would have been offered 10 million dollars which means Elon would have only netted $22,000 from the deal! Zip2 being around at a time when target acquisition were being bought out at a thousand times their imaginary values defined the phrase “Being at the right place at the right time.”
So in summary Zip2 was bailed out by a venture capitalist and with the prowess of a couple outside investors they sold the company to Compaq. Elon was part owner so he reaped the benefits. Where is Zip2 now and what exactly is its use today? Well there is none, and Zip2 is non-existent to say the least. And where is Compaq? Well it was bought out by Hewlett Packard in 2002, and Compaq did very little but lose money for HP. HP sold its Compaq division off and where is HP today? Man oh man, I think you get the point. Just type in $HPQ on one of your charts and see how failure follows failure to the graveyard.
Then with the proceeds of his lucky bailout of Zip2 venture, Elon founded X.com which later acquired Paypal. The huge misconception about Elon’s involvement in Paypal was that Elon was responsible for Paypal when that is not true at all. Had it not been for his partners Peter Thiel and Max Levchin the company would still be called x.com and be a very different story than what it is today. Peter was also at Paypal for a lot longer than Elon and was the leader during the companies crowning moments. Both the IPO and acquisition by Ebay. When Elon tried to impose some of his horrible ideas into this company like putting it on a Microsoft platform and off of Unix the investors and majority shareholder of the company were fed up with Elon’s antics and they fired him as managing board director. His partners were loved by the board and elected to lead and they managed to build up and sell the company to Ebay helping Elon once again reap the benefits of outside management. Once again, “right place, right time.”
Then Elon founded Space X and dumped too much of his personal wealth into trying to launch a rocket into outer space and was on the brink of bankruptcy. He infused so much of his own money that he was nearly broke but again by the luck of the draw and attention by our US government space program, they awarded his company 1 billion dollars using our tax dollars. How did he manage to get the government to give him money and why would they even do that is the question till this day? You will begin to get the impression that someone in our government really likes Elon as you read further on. It’s also rumored that NASA has been receiving scrutiny for spending over 100 billion dollars launching rockets and pretty much getting nowhere so in an attempt to avoid public embarrassment they funded a private company to quiet the government spending hawks. Well at least with that money he can pay himself a nice paycheck and fill up his coffers back with all the money he wasted throughout the years. Right place, right time.