⚡⚡⚡Exciting Moments: The $180 Million Deal in 2002 Changed the World
👉 In 2002, eBay acquired PayPal for $1.5 billion, and Musk held 11.72% of the shares, cashing out about $175.8 million. He didn't retire but instead bet all of it: $100 million on SpaceX, $70 million on Tesla, and $10 million on SolarCity.
The first three rocket launches of SpaceX failed, and in 2008 both companies were on the brink of bankruptcy. He split the last money in his pocket between the two companies. The fourth launch succeeded, NASA signed a $1.6 billion contract, and Tesla secured investment from Daimler, allowing both companies to survive.
✍️ Most people would choose to preserve the $180 million. Musk chose to turn it into a bet of either zero or changing the world, and he placed both bets simultaneously. In a 2008 interview, he said he knew both companies could fail, but he still divided his last money between them.
This is not called madness; this is called faith. Today, the combined market value of Tesla and SpaceX is tens of thousands of times more than that $180 million deal. Every time I read this story, it feels incredible.
—Zhong Xin Si Xiang
👉 In 2002, eBay acquired PayPal for $1.5 billion, and Musk held 11.72% of the shares, cashing out about $175.8 million. He didn't retire but instead bet all of it: $100 million on SpaceX, $70 million on Tesla, and $10 million on SolarCity.
The first three rocket launches of SpaceX failed, and in 2008 both companies were on the brink of bankruptcy. He split the last money in his pocket between the two companies. The fourth launch succeeded, NASA signed a $1.6 billion contract, and Tesla secured investment from Daimler, allowing both companies to survive.
✍️ Most people would choose to preserve the $180 million. Musk chose to turn it into a bet of either zero or changing the world, and he placed both bets simultaneously. In a 2008 interview, he said he knew both companies could fail, but he still divided his last money between them.
This is not called madness; this is called faith. Today, the combined market value of Tesla and SpaceX is tens of thousands of times more than that $180 million deal. Every time I read this story, it feels incredible.
—Zhong Xin Si Xiang
