[W Forum] For Elon Musk

In 2021, Time magazine and the Financial Times named Elon Musk Person of the Year. Musk became the world's richest person with $300 billion, yet he was still seen as an eccentric genius and an outsider. Now, he has finally become someone mainstream society cannot help but acknowledge.

Until now, Musk has faced criticism in the U.S. over sexual harassment within his companies, poor working conditions, racial issues, and autonomous driving accidents. In 2018, the U.S. Securities and Exchange Commission (SEC) investigated Musk for stock manipulation and fined him $20 million. Besides this, the companies Musk runs have been investigated for regulatory violations. Moreover, they have been labeled as privileged companies receiving government support and subsidies. Above all, Musk is a figure to be wary of in the cryptocurrency and stock markets. Stock prices and cash flow fluctuate according to Musk’s tweets.

Despite various controversies and clear rule violations, Musk has turned dreams into reality. He dreamed of what once seemed like science fiction stories published in magazines in the 1980s as if they were real. Musk sparked a revolution in the automobile industry, plans to colonize Mars, build ultra-high-speed trains running in vacuum tunnels, integrate AI into the human brain, and revolutionize solar power and battery industries. Many people doubted Musk’s attempts. His companies once came close to collapse. Nevertheless, he commercialized electric vehicles and launched rockets into space.

Now, however, he is aiming to become what is called a chaebol. Tesla and SpaceX are already companies worth $1 trillion and tens of billions of dollars, respectively. He is also investing in several other companies, including the solar energy company SolarCity. Musk even acquired Twitter for the sake of 'freedom of expression.' It is almost unprecedented for one person to own companies across such diverse fields. No matter how brilliant and capable an entrepreneur he is, one person controlling everything could become a disaster.

Startups often change the world by creating innovative products under brilliant leadership. However, soon after, a tedious era of management to meet customers’ everyday needs inevitably begins. At some point, every company needs a Tim Cook. Especially Musk’s companies are the ones that need a Tim Cook the most. Tim Cook, who was appointed CEO before Steve Jobs died in 2011, had neither Jobs’ vision nor Musk’s genius. Yet under his leadership, Apple was able to more than double its revenue and profits. This was because he hired people who knew how to get things done, maintained profitability continuously, and delivered flawless products.

Although Tesla was the first to commercialize electric vehicles, it now faces fierce competition from latecomers. Musk can make bold investments and even live in the factory for a month when times are tough. However, Musk cannot handle day-to-day management. He is someone who can instantly move on to something else “on instinct,” whether it is electric cars or tweets. Fortunately, SpaceX has a figure like Tim Cook: Gwynne Shotwell, the CEO and COO who turned Musk’s bold vision into reality. If Musk can find more people like Tim Cook and Gwynne Shotwell, his bold vision can become a profitable business.

Musk’s current focus is Twitter. He took Twitter private and acquired it for about $44 billion. According to the New York Times, Musk used more cash than a typical buyer for the Twitter acquisition and created $13 billion in new debt for Twitter. To secure cash, he sold or used Tesla shares as collateral, linking Tesla’s value to Twitter’s value. It is a risky investment, but not unprecedented. The difference is the purpose of the investment. While Musk previously invested in dreamlike futures, this time he is investing in political 'freedom of expression.' He must fight in a red ocean, not a blue ocean. The $1 billion penalty he must pay might even be a wise choice.

Musk stands on the boundary between normal and abnormal, present and future, good and evil. At that boundary, he seems to be walking a tightrope. Even if Musk collapses in the near future, the bold hope he held for the future will still be remembered.

Baek Youngran, CEO of History Bookstore