Elon Musk, either a modern day messiah or a snake oil salesman. Which one?

in #economy7 years ago

Elon Musk is very popular and known world wide. His first claim to fame was being one of the founders of Pay Pal in 2001. Since his sale of Pay Pal, he has embarked on aggressive business platforms such as Tesla (all electric automobiles) and Space X (satellite and cargo carrier into space).

I would say it takes great kahunas to tackle such ambitious business goals. With that being said, I have noticed a few things regarding Elon's business models. Both of his current businesses, Tesla and Space X are heavily subsidized by the U.S. Government. Both business could not survive without having this "corporate" welfare. None of the business have yet to turn a profit. Now I agree that turning a profit in the beginning would almost be impossible, but surviving on grants, zero interest loans and carbon credits is not a traditional business model. It looks to me that we have a case of the government picking winners and losers.

I know of many businesses that are struggling to survive due to a lack of funding. These businesses have great products or services but can not stay afloat financially. It would be nice if the government swooped in and gave endless funds to them but they do not. So what makes some companies receive endless subsidies from the government and others none? Well, politics. Favorites are being picked and Elon Musk caught the attention of Congress and has been given the "Red Carpet" treatment. Good for him I guess. Perhaps, he is smart enough to have positioned himself to receive such favors and support.

I have also noticed a "cult" like following that Elon Musk has with his Tesla brand. His electric car products has landed him a religious cult like following. If you ever run into a Tesla owner or supporter do not ever speak negatively about the company or product. The supporters of Elon will defend him like a Caliphate. The energy and passion of a Tesla lover is scary. This started with Hollywood supporting the car and being one of the first purchasers. Yes, it is a Hollywood status symbol to own a Tesla. After all, if you own one, you can ease your guilt of being rich and famous and show you care about the environment. Oh, never mind the fact you have a 12,000 plus square foot house, private chefs and your own corporate jet. That is OK, because after all you own a Tesla.

Today, the diesel and gas engines are still out performing the electric automobile. In time, however, electric will most likely surpass the combustion engine. There is also less maintenance with electric motors versus combustion. For example in aviation, I would prefer an electric motor over combustion if I could get similar performance. The electric motor would be safer and more reliable (cheaper in maintenance as well). My concern is that the U.S. Government is determining the winners and losers in this field of electric companies. Do not even get me started on Solar City and the debacle that has been.

We have not had a true Democratic Republic and Free Market since the illegal birth of the Federal Reserve on Christmas eve on December 23rd, 1913. This country has slowly developed into a Fascist Corporate/Government merger ever since. The small entrepreneur has a tremendous disadvantage today. Heavy and stiff regulation has been enforced by the government to keep the large corporations on top and prevent the small guy from ever getting started. After all, we can not have any competition against our Fortune 500 companies, they are heavy campaign contributors.

I could go on and on but I try to keep my article brief. My point being, I am leaning more towards Snake Oil Salesman. I hate to say that but Elon Musk's companies are not surviving the traditional way. He is falling right in line with the fascist corporate model. His ideas may be very honorable and needed but I do not approve of his way of getting there. I will give you an example, read this article on how I sold my $Million Dollar Car Collection to save the World https://steemit.com/cars/@jetblake/i-sold-my-usdmillion-dollar-car-collection-to-save-the-world. The problem is, we have several more world changing discoveries that will never be revealed due to the vast global corruption (real shame because these are marvelous inventions).

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Hey ,
Nice work sir

You are the first one who did agree with this post. LOL . I think I struck a nerve with Musk supporters

@coinlend just makes useless comments on people's posts and then upvotes them - don't put too much weight in them :)

You definitely struck a nerve.

I didn't know about the huge government subsidies. Is he picking ethical business models such as green energy cars deliberately because they have the subsidies and he's merely cashing in or does he have a drive to better the world we live in. I'd like to think it's the latter or at least hope so.

I didn't know about it either. I guess you could say he is just a smart businessman.

I don't see anything wrong with the subsidies honestly.

Musk's business model stands to save the US government obscene amounts of money. He's paying for the green energy change so the government doesn't have to. He's shipping goods up to the ISS so that the government doesn't have to. Essentially, they're paying him a service fee. This is also a capitalist economy we're talking about, with the government being a customer just like you and I. In a capitalist economy, you support the causes and products you like with your money. USG is just doing that.

The point you tried to make about the gov not supporting other, smaller companies is irrelevant, imho. The Gov can't support every "good" business. They pick the ones most likely to win. Musk has vision and intelligence, and while his rise hasn't been perfect, it makes sense that he was picked over others.

OK if that is the case, then I guess the question is should the government be involved in business deals. Onassis got rich by making deals with the US govt. He bought old military ships for cheap to ship tobacco.

involved in business deals is kinda vague.

I don't think they should be involved in arbitration of business deals that don't involve the USG, but then again I do appreciate protection against monopolization, so I guess that has exceptions.

As for making deals of their own, I really don't mind it. I'd rather them use their tax money on tech research like Musk's than foreign wars I don't agree with or broken government welfare systems, just like I would rather them sell old military ships to transport tobacco than let those ships break apart in the bay.

I dunno, I think that government being involved in the market is one of my favorite parts of capitalism. It can stimulate competition and encourage tech and other research. We just need to keep an eye out for actual malicious behavior.

True there are some advantages to this.

I have to agree with you on the snake oil salesman, and this was just from reading the title and before I read the post. I do not think that Elon is particularly smart to get funding. I believe he is doing something for investors in return for investing in Tesla. Who knows, maybe he agreed to bug the cars or include something in them that would be of benefit to governments. Either way, I don't like the guy or the company, and his fame and popularity are maybe the result of him not being a leader of a cult, but a respected member, and a trusted messenger of one.

Thanks for your reply. Many did not agree with my post. There are a lot of brainwashed supporters of him

You are welcome. If you keep writing about your honest perspective on things, you will get a lot of brainwashed supporters of one thing or another! The only way to get many agreements is to either write rubbish or things that don't matter. I don't think you will change yourself for the standards of the majority so don't pay attention to them :)

Thanks, You are right. I was never a follower. I write what I think and the truth. I do not sugar coat anything. I am not interested in being popular, just stating facts from my prospective

Good for you! Likewise :)

I see what you're saying. You can make lots of money without a viable product. The electric car will not take off in the USA or South Africa because people like the driving experience itself. It is not just about getting from point A to B.

Thanks for your reply. I hit a nerve on some Elon Musk supporters.

Definitely. He's from my hometown.

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