In a Spaces conversation broadcast on
Hosted by the CEO of ARK Investment Management Cathie Bois, the discussion revealed Elon Musk’s philosophy on the role of investors in business. Despite his ability to finance startups independently, Musk has emphasized the strategic value of involving outside shareholders.
“Every investor you add is an ally,” he said. “It’s good to have more allies.”
This perspective underscores his belief in building a support network rather than operating in isolation.
He highlighted the value of external perspectives, saying: “I think it also demonstrates that I have no illusions about valuing companies. If others are willing to invest at a particular value, I am not the only one to decide the value of the company. Others decide what companies are worth; it is, in a way, an assessment of the value of the company.
This approach helps establish a perspective based on the valuations of one’s companies, countering any notion of personal bias.
Another key point Musk touched on was the concept of “enabling liquidity” for employees holding stock options. He believes in aligning employee incentives with business results.
“It’s important to give stock to workers,” he said.
He said his approach to You’re here has potentially created more employee millionaires than any other company, reflecting its commitment to employee investment.
Trend: Backers on this alternative asset platform are earning over 14% annualized consignment profit Financing Pro Consignment Opportunities.
Musk’s diverse portfolio includes The Boring Co., Neuralink Corp., X and x.AI Corp., his company competing with OpenAI’s artificial intelligence (AI) chatbot technology. These companies, while fraught with the risks and controversies typical of Musk-led projects, demonstrate his confidence in managing diverse businesses through equity or debt.
Reflecting on his track record, Musk said, “In all my businesses, over the years, I have never lost money to an investor, even once.”
This record, spanning over 100 financing rounds, illustrates his efficient capital management. While acknowledging that he can’t stop people from selling their investments, he stressed that he has never pushed them toward unfavorable outcomes.
Musk attributed his ability to easily attract capital to his history of responsible capital management. He pointed out that when you treat capital well, it tends to be reciprocated. This made it relatively easy for him to obtain funding for his ambitious projects.
“Obviously, when you’ve treated capital well, capital in turn treats you well,” Musk said. “So it’s very easy for me to raise almost any amount of capital, frankly.”
He also stressed the importance of maintaining transparency and avoiding complacency to ensure continued investor confidence.
Investing in startups as Tesla presents a valuable opportunity for investors to engage in innovative businesses. Even though Tesla has already achieved substantial value, it is important to recognize that many other high-potential startups are awaiting investment. These startups often represent the vanguard of technological advancement and market disruption, providing investors with the opportunity to participate in something innovative.
“ACTIVE INVESTORS’ SECRET WEAPON” Boost your stock market game with the #1 “news and everything else” trading tool: Benzinga Pro – Click here to start your 14-day trial now!
Get the latest stock analysis from Benzinga?
This item Elon Musk tells Cathie Wood that having investors helps establish that he’s “not delusional” and explains that Tesla may have created more employee millionaires than any company in the world history originally appeared on Benzinga.com
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.