| ▲ | cj 18 hours ago |
| > ENGINEERED BY SPACEX It would be very interesting to see some kind of diagram depicting all of the corporate entities Musk is involved in and how each entity does business with one another. xAI just raised billions to help Tesla build out FSD (or at least that was part of the pitch). His empire is divided into so many corporate entities, but they all cross-pollinate and are clearly under his direct control for the most part. The closest comparison I can think of is Berkshire Hathaway (one person/group controlling multiple wide ranging private and public companies). |
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| ▲ | samwillis 17 hours ago | parent | next [-] |
| It's similar (ish), but I think unfortunately the comparison distracts from your core point and observation. Musk Inc. is, in essence, a privet equity company. He raises a fund, and invests it along with his own cash into a business he knows well, and with which he believes he can disrupt the status quo. He's very hands on, understanding all the important core details, setting culture, and pushing hard. But he also delegates to experts he brings in to run his businesses. It's obviously not the same as PE, but there are distinct similarities. With each of his companies he clearly can't take an active role all the time, but what his team are experts at is identifying the areas he needs to be on top of, and they will quite literally fly him in for it. It seems to me it's always the start of something, be it a new company or project. He will be there 24/7 getting it off the ground, but then hand over to lieutenants to run. It's a formula that seems to work again and again. We're (well those of you in the US) are in for an interesting time over the coming year as he has a new project to kick start. |
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| ▲ | m463 15 hours ago | parent | next [-] | | I agree with you, yet in a somewhat different way. He is an investor investing in science fiction. This isn't even implied, he comes out and says it again and again. I'm reminded of xerox parc's "The best way to predict the future is to invent it" and I think that's his philosophy. As to "businesses he knows well" I do not agree. He didn't go into electric vehicles, rockets, robots or neural interfaces as "business he knows well". Just read about musk going to russia to try to get a launch vehicle going and coming back insulted and frustrated. So he broke down the problem and learned how to solve it. Also "Private Equity" has a connotation of rent seeking nowadays, like "buying all dentists and monetizing to extract profit". I don't see him that way philosophically. I see him as a pure creator, not a rent seeking wealth extractor. | | |
| ▲ | bhouston 7 hours ago | parent | next [-] | | With Twitter/X he definitely did act like a PE firm with deep cuts and a simplified operating model (eg. no moderation.) Although strangely he destroyed the revenue model at the same time, which is something a PE firm would be careful to avoid. | |
| ▲ | Spooky23 14 hours ago | parent | prev | next [-] | | The danger is his focus on living on Mars with no accountability. It’s like letting a ten year old have unlimited access to the Halloween candy, except the candy is society. Both the typical PE scum and lunatics like Musk are the textbook example of why business needs to be on a leash. | | |
| ▲ | fastball 9 hours ago | parent | next [-] | | He's actually a marsatic. | |
| ▲ | signatoremo 13 hours ago | parent | prev [-] | | > The danger is his focus on living on Mars with no accountability. What is an example of this non accountability? | | |
| ▲ | Spooky23 10 hours ago | parent [-] | | How about blatant securities fraud wrt to constant pump and dump of DOGE? | | |
| ▲ | lmm 9 hours ago | parent | next [-] | | "DOGE" is probably not a security (that will ultimately be a question for the courts I'm sure, but you have to stretch the Howey test quite far to find a "common enterprise". It's a picture of a dog with some dumb text), and there's no credible evidence that Musk ever dumps it or even really pumps it. | |
| ▲ | floydnoel 6 hours ago | parent | prev [-] | | and you’re extra worried about that happening on mars? why? |
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| ▲ | threeseed 14 hours ago | parent | prev | next [-] | | [flagged] | |
| ▲ | iml7 12 hours ago | parent | prev [-] | | [flagged] |
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| ▲ | cj 16 hours ago | parent | prev [-] | | I’m curious why this is being downvoted (seems to hit the nail on the head) | | |
| ▲ | dhfbshfbu4u3 2 hours ago | parent | next [-] | | It’s not being downvoted due to any inaccuracy, but rather the implied positive sentiment about Musk’s involvement with the government. A more pessimistic view might be: Musk’s businesses have technological advantages but are financially over-leveraged. Their present success relies on heavy government subsidies while their future success depends on complete privatization of government functions. | |
| ▲ | archagon 16 hours ago | parent | prev [-] | | Well, it's certainly how Musk likes to market himself. | | |
| ▲ | altcognito 16 hours ago | parent [-] | | 12 children, 3 billion dollars companies, "advising" the government on cutting millions of jobs", yet he is "very hands on" | | |
| ▲ | walls 15 hours ago | parent | next [-] | | And hundreds of tweets per day. | |
| ▲ | pmarreck 15 hours ago | parent | prev [-] | | don't forget his diablo IV streams Seriously though, if he's primarily in a delegation mode these days, good for him, I think he's earned it Bias disclosure: I feel like I could be a Musk if I actually had zero laziness and a few extra connections. We are similar in intelligence and interests and worldview (other than his edgy tweets of the last 1-2 years) | | |
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| ▲ | paxys 18 hours ago | parent | prev | next [-] |
| While your overall question is valid, Starlink is simply a division of SpaceX. There's no "relationship" to consider. They are one and the same. |
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| ▲ | xiphias2 3 hours ago | parent [-] | | While it's true, SpaceX will raise money by making Starlink (the less important / easier business) public and keep SpaceX (the real business that makes it possible that Starlink depends on) private. |
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| ▲ | morpheuskafka 14 hours ago | parent | prev | next [-] |
| > His empire is divided into so many corporate entities, but they all cross-pollinate and are clearly under his direct control for the most part. It's not unusual for large companies to have a large web of corporate entities, but what's problematic is that they have different ownership rather than the same owners/owned by each other. (I started to say that one is public and others private, but it would be the same issue if two were public, as they would obviously not have the exact same set of owners.) When xAI makes a deal with Tesla, if xAI is getting the better end of the stick, that is a self-dealing problem that the SEC can investigate on behalf of Tesla shareholders. The assets of Tesla belong proportionally to its owners, so Musk or another large owner can't make deals that give their private company an advantage at the expense of Tesla owners. If Tesla gets too generous of a deal, that's something the non-Musk owners of xAI if any could raise an issue with, but when the public company is allegedly getting shortchanged, the SEC gets involved too. Moreover, even if you are trying to do it right, there is always the opportunity for someone to challenge you. |
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| ▲ | Spooky23 14 hours ago | parent [-] | | Recall that Elon re-domiciled from “activist” Delaware to… whatever you call Texas and it’s reputation for corporate governance. And now, he’s becoming some sort of circus act to disrupt the bureaucracy of the Federal government. So I wouldn’t count on the SEC doing anything. | | |
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| ▲ | skissane 17 hours ago | parent | prev | next [-] |
| > His empire is divided into so many corporate entities, but they all cross-pollinate and are clearly under his direct control for the most part. My understanding is that, given Tesla is a public company, any collaboration between Tesla and other Musk companies needs to be approved by the board (or maybe by other C-suite executives) without Musk in the room. Musk can come up with the idea for a collaboration, but then the decision that it is in the best interests of Tesla and all its shareholders to proceed with the collaboration needs to be made independently of him. By contrast, I don't think the rules apply as strictly to his other companies since they are privately held. The law cares a lot more about protecting shareholder rights in public companies than in private ones. |
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| ▲ | chrisco255 13 hours ago | parent | next [-] | | Collaboration is handled by the executive team. The Board of major companies is not so active as to negotiate deals. One may be an activist board member and hold sway over the CEO, but ultimately it's the CEO's job. The Board simply picks the executive team. | |
| ▲ | elAhmo 17 hours ago | parent | prev | next [-] | | The board at Tesla is basically Elon’s buddies. There is no oversight or independence there, they do what he wants. If law was applied equality to billionaires as it does to regular people, he would be in jail for fraud. | | |
| ▲ | skissane 15 hours ago | parent | next [-] | | > The board at Tesla is basically Elon’s buddies. AFAIK, Robyn Denholm, Tesla’s chair, had no particular association with Musk prior to joining Tesla’s board. She is an Australian business executive with a history of working in senior finance roles in Australian and US firms. She was recruited on to Tesla’s board by another (now former) Tesla director, Brad Buss, who to my knowledge has never been that closely associated with Musk either. Musk obviously trusts and respects Denholm, but I believe their relationship is more professional than personal - Denholm lives in Australia and travels to the US for Tesla board meetings. | | |
| ▲ | sangnoir 14 hours ago | parent [-] | | Wasn't there a shareholder suite that alleged the directors aren't independent because of the above-standard Tesla options they receive? Robyn Denholm excecised and sold $35M worth of TSLA in the past month. | | |
| ▲ | pmorici 13 hours ago | parent | next [-] | | If receiving stock based compensation is grounds for not being independent then wouldn't most companies have an independence issue with their boards? It just seems like a crazy claim on it's face. | |
| ▲ | skissane 14 hours ago | parent | prev [-] | | > Wasn't there a shareholder suite that alleged the directors aren't independent because of the above-standard Tesla options they receive? Has a court accepted that argument? I mean, you can come up with all sorts of grounds to claim an independent director isn’t really independent, but unless a court with jurisdiction accepts the argument, it doesn’t really count for anything. | | |
| ▲ | JumpCrisscross 12 hours ago | parent | next [-] | | > Has a court accepted that argument Yes, a Delaware court. It’s why Musk’s pay package is contested and why Tesla redomiciled. | |
| ▲ | sangnoir 14 hours ago | parent | prev [-] | | HN is a court of law: some things may fail to meet some legal test, but not that in no way means it automatically becomes subjectively "right". I am adding a datapoint on what's arguable and leaving the judgement of cogency to the reader. My previously-unstated opinion is: remunerating directors like executives blurs the distinction between those 2 roles in ways that are likely detrimental to long-term shareholders. |
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| ▲ | User23 16 hours ago | parent | prev | next [-] | | > The board at Tesla is basically Elon’s buddies. There is no oversight or independence there, they do what he wants. This is true at most companies with a competent CEO. My uncle had an inimical board that tried to remove him, but he somehow replaced them all one by one before they could. Needless to say he replaced them with people who didn't want to remove him ("buddies"; but what kind of a leader surrounds himself with people that want him to fail?). He's never told me how he did that despite my asking several times. | | |
| ▲ | threeseed 16 hours ago | parent | next [-] | | > This is true at most companies with a competent CEO. No it's not. Competent CEOs hire boards that align with their world-view but are independent enough to provide useful advice. And almost all startup boards will have investors who definitely will not rubber stamp the sort of thing going on at Tesla. | |
| ▲ | calmbonsai 16 hours ago | parent | prev [-] | | Some companies have board governance rules that mandate a majority of the board seats be of "outside and independent" individuals, but of course this can easily be gamed and, of course, these rules themselves can be put to a vote during shareholder meetings. Still, it's always worth considering these structures before one invests--especially in med-to-large-cap public companies. Alternatively, in private small-cap and venture-boards, the seats are nearly always filled by founders and lead investors and I would argue that's a "good thing". |
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| ▲ | briandear 17 hours ago | parent | prev [-] | | If shareholders are happy, what business is it of yours? If they aren’t happy, they can sell the shares. | | |
| ▲ | dullcrisp 16 hours ago | parent | next [-] | | SEC destroyed | |
| ▲ | elAhmo 16 hours ago | parent | prev | next [-] | | Following the law should be above the shareholder gain. Mentality like yours is what got us in this situation where people are blatantly abusing the government for personal gain. | |
| ▲ | morpheuskafka 14 hours ago | parent | prev | next [-] | | It's not enough to just do a poll and say that most shareholders are "happy." If there is even one owner, which there will be, who objects, you need to be able to show that decisions were in the best interest of the company. That doesn't mean said owner has to agree with them, but if there are deals that arguably favor outside companies then you will hear from either the SEC or that one shareholder. The other comment saying "the law is above shareholder gain" is kind of missing the point thought--the law in question is specifically to protect the interest of shareholders. | |
| ▲ | verzali 6 hours ago | parent | prev [-] | | This is how you end up with another Enron |
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| ▲ | Hamuko 17 hours ago | parent | prev [-] | | Wasn't Musk pulling Tesla engineers to go work on Twitter? |
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| ▲ | numpad0 16 hours ago | parent | prev | next [-] |
| You're describing a corporate conglomerate, in style of pre-modern to early industrialization era. |
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| ▲ | SMAAART 7 hours ago | parent | prev | next [-] |
| Starlink is a wholly owned subsidiary of subsidiary of SpaceX. |
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| ▲ | moralestapia 15 hours ago | parent | prev | next [-] |
| Starlink has always been a SpaceX project. I don't see what's confusing about it. |
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| ▲ | demarq 13 hours ago | parent | prev | next [-] |
| samsung family I think is the closest |
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| ▲ | tucnak 6 hours ago | parent | prev | next [-] |
| In the context of OP, the corporate structure of SpaceX et al. is about as far from interesting as it could possibly get. The obsession some posters have with rich people (and Musk in particular) is really unhealthy! |
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| ▲ | mavhc 7 hours ago | parent | prev | next [-] |
| Isn't the Tesla supercomputer completely separate from the xAI supercomputer? |
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| ▲ | 16 hours ago | parent | prev | next [-] |
| [deleted] |
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| ▲ | Onavo 17 hours ago | parent | prev | next [-] |
| Berkshire is very different, they are a hedge fund/holding company and their main business is trading companies. |
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| ▲ | lupusreal 18 hours ago | parent | prev [-] |
| Starlink and SpaceX have an even closer relationship than most other Musk companies; Starlink is a wholly owned subsidiary of SpaceX. |
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| ▲ | tgma 18 hours ago | parent | next [-] | | > Starlink is a wholly owned subsidiary of SpaceX. Starlink is not a separate entity — it's a division of Space Exploration Technologies Corp. From Terms of Service[1]: > Your order for two-way satellite-based internet service (“Services”) and a Starlink antenna, Wi-Fi router and mount (“Starlink Kit” or “Kit”) is subject to the terms (“Terms”) of this Starlink agreement for the United States and its territories. These Terms, those terms incorporated by reference, and the details you agree to in your online order (“Order”) form the entire agreement (“Agreement”) between you (“customer” or “user”) and Space Exploration Technologies Corp. (known as “Starlink” in these Terms). [1]: https://www.starlink.com/legal/documents/DOC-1020-91087-64?r... | | |
| ▲ | jazzyjackson 12 hours ago | parent | next [-] | | I didn't realize SpaceX was just a nickname for Space Exploration Technologies Corp, TIL So the Terms of service is with SpaceX but apparently there is such a thing as Starlink Services LLC, but I'm just going off Wikipedia, all this corporate structuring is opaque to me. | | |
| ▲ | tgma 10 hours ago | parent [-] | | > SpaceX was just a nickname for Space Exploration Technologies Corp It's slightly more than that: it's a legally recognized nickname for the actual entity, technically called a "Fictitious Business Name" (aka DBA, "doing business as") registered with the state. > there is such a thing as Starlink Services LLC One might register a bunch of shell companies in various jurisdictions, holding various assets and contracts during the course of business, for tax reasons, to limit the blast radius of liabilities and facilitate business (for example, retail gift cards, e.g. Amazon, are often issued by a separate legal entity.) I think there's a qualitative distinction there with what Berkshire Hathaway or perhaps Alphabet Inc. do with their separate businesses that are hands-off subsidiaries. It appears at the moment Starlink is very much intertwined with SpaceX and user contracts and the trademark are actually directly owned by SpaceX, so not sure what they are using that particular LLC for. | | |
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| ▲ | inemesitaffia 8 hours ago | parent | prev [-] | | Outside the US, for Internet, your agreements are with Starlink Services LLC. Not with SpaceX |
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| ▲ | kortilla 18 hours ago | parent | prev [-] | | Starlink isn’t a company. It’s a product offered by spacex. Just like Falcon, Starship, and Dragon. | | |
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