He isn't using his own wealth to do this. Space X has been obtaining multi-billion dollar payments from the US government and repeatedly underperforming. He is supposed to have delivered a platform for a manned mission to the moon (price around $3B). The money is largely gone and the platform does not exist. Do you think he saves his own money in a piggy bank and generously spends it for the benefit of mankind? Does his wealth come from profits on selling Tesla cars, or from hyped stock values, elevated by his ability to convince the public that he has all sorts of wonderful technologies and products that he, in fact, does not have.
First up, apologies if the "nonsense" that follows is long, but I don't see how it's possible to really talk about that in a way without getting into the detail. I hope you appreciate that the time I put into writing this is a mark of respect to you, others here and my interest in the subject, even though I'm disagreeing with you. If the style is a bit brusque, it's not intended to be, that's partly how the role I once worked in (financial / technical / actuarial) writes and maybe a slightly neurodivergent tendency. In this, I'm aiming for clarity, not condescension or pomposity, even if the latter comes across that way. Apologies if it
does comes across that way, it's not intended.
I get a feeling when people criticise Musk that part of what they're railing against is Musk's personality and values, and beyond that Musk's undeserved image as a titan of industry -- that his praise and money is off the back of much smarter people than he. I don't disagree with that, but IMHO it minimises the achievements of those smart folks at SpaceX.
In many ways Musk and SpaceX, like Tesla, are indivisible, not because of his technological prowess but because he is the goal setter and motivating force for those businesses. It's unfortunate that the convention is we say Musk when we mean "the engineering team at SpaceX", but that's how it is.
I'm in an awkward position of seeming to have to defend Musk's business practices as a whole which is something I don't want to attempt. None of what follows means I think Musk is a good, ethical person or approve of his politics.
If I was to armchair psychoanalyse him, a terrible idea I know, but judging by his behaviour on X, he seems like sort of a techie nerd with nerdy dreams informed by cool looking concept art and sci-fi of the 60's to 80's. You can see that with the Cybertruck and his Syd Mead obsession. To me, he seems like someone in love with "the future". Some of his worst personality aspects, the constant need for attention, the trolling, his misogyny and awful attitudes probably also go along with that same nerdy 80s kid tendency as anyone who went to comic cons in the 80s probably would have seen.
Because of that, I believe Musk is someone with a genuine dream of getting to Mars and his efforts at SpaceX aren't just to embezzle money from public funds. There are probably much easier ways he could do that if that was his goal. So that's how I see Musk and where I'm coming from.
My question to you is: is the picture you paint above wholly accurate?
I wasn't saying that Musk was solely bankrolling SpaceX out of his savings like a hobby in his shed. It's a business. Businesses need investment.
When he was sued by the Thai diver guy, Musk's liquid assets were declared in court as 0. His wealth is entirely illiquid. Why doesn't he liquidate his assets to pay for his boondoggles? Partly for tax reasons, but mostly because they're currently in use in the businesses he has assets in. If he withdrew them it could materially harm those businesses.
When we say Musk has $450bn of wealth, we're really saying that his control over a portion of the economy is valued at $450bn. That value is generated (in Musk's case)
because it's under his control. It's the markets fault.
When I say "rich enough" what I mean is he has the ability to direct investment because of his wealth, position, reputation and ability to secure capital. He could use that ability in any other sector if he chose, he could just focus on his existing enterprises, but I'm glad he's using it towards the dream of going to Mars. Even if it is just a dream.
re: funding etc.
The figures of govt investment I can find are accounted as follows:
- NASA: $14.4 billion for rocket launches and satellites
- Defence Department: $5.32 billion for rocket launches and satellites
- Classified contract: $1.8 billion in 2021
- Other contracts: At least $3.8 billion in 2024
Defence and classified contracts aside where it isn't public info, I can't see that he's failed to deliver on these contracts.
When you say "manned mission to the moon" do you mean Starship HLS - ($2.89 billion of the "other contracts" portion')?
I can find news that it's planned for a test launch in 2025 with a crewed test in 2027. Is that what you were referring to? Is it behind schedule? Or was there some other contract you were referring to?
What do you mean by "the money is largely gone"? Spacex has a valuation of over $360bn. Are you saying there's some fraud in accounting, that it's actually worthless? I don't understand your point here.
Is it fair to say SpaceX hasn't delivered anything since they've developed reusable rockets, engine designs etc? All this development seems like part of a roadmap to creating S/HLS rather than just empty flim/flam to attract more investment. It's not like he's taken the money and run off to the Bahamas. S/HLS is a long term project underway since at least 2010. I can't believe that they'd earmark just 3.8bn for a long term project.
I don't see what Musk is doing anything different from any other large astro / aero company. In 2023, Boeing were given $4.2 billion to develop Starliner by the govt, too and that's been dogged by delays and failures. Blue Origin had $3.4 billion in 2023 for Artemis. The US spent $72 billion on space projects in that year alone and that doesn't include DoD space programmes.
Are you opposed to govt investment in private companies? What am I missing here? I'm genuinely open to the idea that I'm wrong.
Does Musk overpromise and underdeliver at Tesla and his solar panels and so on? Sure. If you're saying that I have no arguments, but it seems a standard practice in these kinds of engineering businesses and the risk is accepted by the government precisely because of their experimental / skunkworks-like nature.
Apologies once again for the length. Respectfully, MZ.