How did Elon Musk make his first million?
Elon Musk made his first million by selling his startup Zip2. Back in 1995, he and his brother Kimbal started it as a sort of online city guide for newspapers where users could find business listings, maps, and directions. It was an online version of yellow pages. Elon did all the coding for the site himself and lived at the office with his brother Kimbel. It caught the eye of big papers like The New York Times and Chicago Tribune, which helped it grow.
In 1999, Compaq bought Zip2 for a total of $307 million in cash, plus some stock options, and Musk walked away with $22 million. This was the big break he needed, and he used the cash to fund his next venture, X.com, which would later become PayPal.
Tesla Motors
In 2004, Musk joined Tesla Motors, an electric car startup founded by Martin Eberhard and Marc Tarpenning. Musk became one of the company’s major funders and later its CEO.
Musk even had to invest his own money to keep Tesla alive, but he believed electric cars could change the world. In 2008, Tesla launched its first car, the Roadster. It gained attention, but the company was still struggling. Musk worked tirelessly, sometimes sleeping in the factory, pushing Tesla forward through thick and thin. Finally, in 2012, the launch of the Model S turned things around. It was a hit, and Tesla went on to become a leading electric car company.
SpaceX
In 2002, Musk started SpaceX (Space Exploration Technologies) with the dream of making space travel affordable and eventually colonizing Mars. He poured $100 million of his own money into the company, and it was a huge risk. The early years were tough. SpaceX’s first three rocket launches failed, and if the fourth one didn’t succeed, SpaceX would have likely gone bankrupt. But in 2008, the fourth launch was successful, and it secured a contract with NASA.
Musk’s vision was ambitious: he wanted reusable rockets, which would drastically cut the cost of space travel. SpaceX continued to innovate, and in 2015, they successfully landed a reusable rocket, marking a major milestone in space technology. SpaceX now regularly flies missions for NASA and other companies, and Musk’s dream of reaching Mars feels closer than ever.
Solar City
In 2006, Musk co-founded SolarCity with his cousins Lyndon and Peter Riv. Musk saw solar power as the future of energy, but the company had financial challenges and took on a lot of debt. Eventually, Tesla acquired SolarCity in 2016, merging it into Tesla’s energy division. Although some saw this as a risky move, it helped Tesla expand into solar energy products like the Solar Roof and Powerwall batteries.
The Boring Company
In 2016, Musk started The Boring Company, aiming to create tunnels for high-speed transportation under cities to solve traffic issues. The idea was to dig tunnels where electric pods could transport people quickly and safely. While the company’s progress has been slower, it has completed test tunnels in California and Las Vegas. The Boring Company has generated a lot of interest and even sold “flamethrowers” as a fundraising gimmick, adding a bit of Musk’s humor to the project.
Struggles
Musk’s journey wasn’t smooth. By 2008, both Tesla and SpaceX were nearly out of cash. Musk had to decide where to put his remaining money, and he chose to split it between the two. He was practically broke and had to borrow money for living expenses. But his gamble paid off. Tesla received a major investment, and SpaceX secured the NASA contract, saving both companies.
Musk also faced criticism and challenges with public perception. As Tesla’s CEO, he’s been outspoken and sometimes controversial on social media, leading to legal issues and fines. However, he has continued to lead his companies with a vision for a more sustainable, multi-planetary future.
Success and Legacy
Today, Musk’s companies are thriving. Tesla is one of the most valuable car companies in the world, leading the electric vehicle market. SpaceX is working on ambitious projects like Starship for Mars missions and Starlink, a satellite network for global internet. Musk’s vision of a cleaner Earth and life on Mars is no longer just a dream—it’s becoming a real possibility.
Elon Musk’s story since selling X.com is one of taking risks, facing near failure, and never giving up on his vision. His journey shows that big dreams often come with big challenges, but with determination and resilience, they can lead to extraordinary success.
Image Attribution: The Royal Society, CC BY-SA 3.0 https://creativecommons.org/licenses/by-sa/3.0, via Wikimedia Commons
Source: https://en.wikipedia.org/wiki/Zip2#:~:text=In%201999%2C%20Compaq%20Computer%20paid,and%20US%2415%20million%20respectively.
