Originally Posted By: MrHorspwer
The world needs crazy people to push things along. People who believe in what they do and push hard to further their endeavors. That s Elon Musk and that's great. But...
Space X is Elon Musk. Tesla is Elon Musk. Without him, both would have already fizzled. I say it's "him" because of what he brings to the table: Money, or rather, friends with LOTS of money. They guy's friends list is pretty much all of the Bay Area and that's who's bankrolling his ventures. The important part is that it's being bankrolled as a friend, not an investor.
Traditional corporations are beholden to shareholders and investors. Elon Musk isn't. If management at a corporation falters on their returns, they're replaced. That's how capitalism works. Elon Musk is a moonshot that plays outside of those rules. GE isn't. You call it being afraid, they call it doing what their owners (the shareholders) expect. A company's purpose is to make money for its shareholders. Not save the world or further humanity. Those are great marketing taglines, but without profits nothing happens. Money is always first.
Elon Musk currently operates outside that reality. Eventually though, his chickens are going to come home to roost. He has made some very bold claims, even some not so bold ones, that he has not followed up on. I hope he has tangible returns to show before that time comes so he can keep being crazy.
Who says I like corporations that are beholden to shareholders? Personally I think being a publicly traded company that has to report to shareholders stifles any hope that comany may have had for true innovation. It means they are more concerned with the bottom line and quarterly results than long term ideas. It means that they can't afford to be dreamers and to take risks because of those things. Publicly traded companies are the reason that horrible companies like Comcast, TWC, and the old GM exists. Management that exists soleley to ensure higher profits than last quarter. They are forever chasing the bottom line. It's not about long term sustainability. It's about short term gains to please shareholders.
Companies that buck the trend like Tesla and SpaceX are ones that I can actually admire. One of the few companies that even comes close is google. Despite being publicly traded, they still are willing to take massive risks and innovate.
Elon musk also is a little more than a money fund. He is actually chief designer on the Falcon 9. He helped design it. He helped design Teslas. He is more than simply a bankroller. He genuinely cares and is interested in what he is doing. That is more than one can say for the owner and CEO of pretty much any other major company.