A Study of Perceived Genius

When most people think of Elon Musk, they picture the visionary behind Tesla, SpaceX, and other groundbreaking ventures. But what if I told you that Musk’s so-called “genius” isn’t about inventing every company he’s associated with, but rather about strategically investing, leading, and scaling them into world-changing businesses?

Musk’s success does not lie in being the founder of every company he’s known for, but in his ability to recognize opportunities, back the right people, and provide the vision and leadership needed to take them to the next level. For the tech-savvy, entrepreneurial-minded individuals out there, Musk’s journey offers valuable lessons on how to approach business, investment, and leadership.

Let’s dive into the key companies Musk didn’t invent but played a pivotal role in shaping—and uncover the key takeaways that could inspire your own entrepreneurial journey.

1. Tesla, Inc.

• Original Founders: Martin Eberhard and Marc Tarpenning
• Musk’s Role: Musk didn’t invent the electric vehicle (EV), nor did he create Tesla. Musk joined Tesla in 2004 as the lead investor in the Series A funding round, contributing $6.5 million and becoming the largest shareholder and chairman of the board. Musk’s strategic vision and leadership were instrumental in transforming Tesla into the dominant EV company. He took an active role in product design and corporate strategy, pushing for the development of the Roadster, Tesla’s first electric sports car. In 2008, amid financial difficulties and the global financial crisis, Musk became CEO of Tesla. Under Musk’s leadership, Tesla expanded its product line, built the Gigafactory, and became a major force in the automotive industry. He led the company through challenging phases, investing more of his own money and driving the development of subsequent models like the Model S sedan. Musk’s involvement and vision have indeed made him synonymous with the Tesla brand, as he continues to serve as CEO and has been the longest-tenured CEO of any automotive manufacturer globally as of 201

Takeaway: True leadership isn’t just about starting a company; it’s about guiding it through critical growth stages and making the right moves at the right time.

2. PayPal (formerly X.com)

• Original Founders: Max Levchin, Peter Thiel, and Luke Nosek (PayPal); Musk (X.com)
• Musk’s Role: Elon Musk founded X.com in 1999 with the vision of revolutionizing online payments. In March 2000, X.com merged with Confinity, the company behind PayPal, and the combined entity initially retained the X.com name. Musk served as CEO for a brief period but was replaced by Peter Thiel in October 2000, before the company was renamed PayPal in June 2001. Although Musk’s direct involvement was short-lived, his early contributions and vision were crucial in shaping the direction of the company. PayPal went public in February 2002 and was acquired by eBay for $1.5 billion later that year, solidifying its status as a leading online payment platform.

Takeaway: The ability to recognize when to step back and let others take the reins can sometimes be just as important as being the one in charge. Partnerships and timing are key to success.

3. SolarCity

• Original Founders: Lyndon and Peter Rive (Musk’s cousins)
• Musk’s Role: SolarCity was founded in 2006 by Elon Musk’s cousins, Lyndon and Peter Rive, with Musk playing a critical role as the initial strategic visionary and primary investor. Musk provided significant early funding and served as the company’s chairman, helping guide its growth strategy. Under the Rive brothers’ leadership, SolarCity became the largest residential solar installer in the United States by 2013. In 2016, Tesla acquired SolarCity for $2.6 billion in an all-stock deal, which was controversial due to potential conflicts of interest, as Musk was a major shareholder in both companies. The acquisition integrated SolarCity into Tesla’s expanding renewable energy division, positioning the company to offer comprehensive sustainable energy solutions including solar panels, solar roofs, and energy storage systems.

Takeaway: Investing in a company is about more than just providing capital. It’s about adding value through mentorship, strategy, and creating synergies that push the business forward.

4. The Boring Company

• Original Concept: Elon Musk (2016)
• Musk’s Role: The Boring Company was conceptualized by Elon Musk as a solution to urban traffic congestion, emerging from his frustration with Los Angeles traffic in 2016. Rather than inventing entirely new tunnel-boring technology, Musk acquired existing tunnel-boring machines and infrastructure to create innovative underground transportation systems. The company purchased second-hand tunnel boring equipment and focused on improving tunneling efficiency and reducing costs. Their goal is to revolutionize urban transportation by creating high-speed underground tunnel networks that can transport vehicles on electric platforms. While Musk didn’t create the tunnel-boring technology from scratch, he reimagined its application, demonstrating how innovation can stem from rethinking existing technologies. The Boring Company has already completed projects like the Las Vegas Convention Center Loop and continues to develop more ambitious underground transportation solutions, showcasing Musk’s approach of adapting and optimizing current technologies to address modern urban challenges.

Takeaway: Innovation doesn’t always mean creating something from scratch—it can also mean reimagining and improving existing systems to solve real-world problems.

5. Neuralink

• Musk’s Role: Neuralink was indeed founded in 2016 by Elon Musk along with a team of scientists and engineers, including Max Hodak. The founding team of Neuralink consisted of eight members who joined Musk: Max Hodak, Benjamin Rapoport, Dongjin Seo, Paul Merolla, Philip Sabes, Tim Gardner, Tim Hanson, and Vanessa Tolosa. Max Hodak served as the President of Neuralink from its inception until early 2021. It was founded as a neurotechnology company focused on developing brain-machine interfaces (BMIs). As the primary, Musk quickly became the public face and driving force behind the company, carefully selecting the initial team after meeting with over 1,000 potential candidates. The company’s objectives are twofold: developing near-term medical applications for treating neurological disorders and pursuing a long-term vision of merging human cognition with artificial intelligence. While Musk has been instrumental in securing funding and shaping the company’s strategic direction, the actual technological developments are the result of collaborative efforts by a team of neuroscientists, engineers, and researchers. Neuralink has made significant progress in developing advanced BMI technology, including a chip designed to be implanted in the human brain, with the ultimate goal of helping people with neurological conditions and potentially enhancing human cognitive capabilities.

Takeaway: Success can often come from joining forces with talented people and providing the leadership, resources, and vision to scale their ideas in ways they couldn’t do on their own.

6. OpenAI

• Original Founders: Sam Altman, Greg Brockman, Ilya Sutskever, John Schulman, and Wojciech Zaremba
• Musk’s Role: OpenAI was founded in December 2015 by a group of tech innovators including Sam Altman, Greg Brockman, Ilya Sutskever, Wojciech Zaremba, John Schulman, Trevor Blackwell, Vicki Cheung, Andrej Karpathy, Durk Kingma, Pamela Vagata. Musk and Altman ultimately began serving as co-chairs. Musk was a significant early contributor, providing substantial funding and strategic input to the organization, which was initially established as a non-profit aimed at developing artificial intelligence for the benefit of humanity. In 2018, Musk stepped down from the board due to strategic disagreements, with underlying tensions emerging around the organization’s direction and potential transition to a for-profit model. Despite his departure, Musk’s early involvement was crucial in establishing OpenAI’s initial vision and momentum. The organization has since transformed into a for-profit entity, becoming a leader in AI development with the release of groundbreaking technologies like ChatGPT, a trajectory that diverges from its original founding principles.

Takeaway: Recognizing the potential in emerging fields and getting involved early can make you a key player, even if you aren’t the one who starts the company. Your influence can shape entire industries.