Both men stumbled when making crucial business decisions and attempting to influence public opinion
Robert Brent Toplin
Two famous self-made business moguls displayed the perils of hubris: Henry Ford, a native of Michigan, and Elon Musk, an immigrant to the USA from South Africa. Both emerged from humble origins and achieved fame as the world’s richest men. Millions of people in the USA and the world admired them. Yet errors of judgment showed extraordinary skill in one field of endeavor does not guarantee success in others. Both Ford and Musk stumbled when making crucial business decisions and discussing controversial topics of their times. Rather than entertain questions about their plans and seek counsel from experts, Ford and Musk acted like all-knowing, infallible autocrats. Rash decisions damaged their profits and reputation.
Henry Ford, a skillful mechanic, became enormously wealthy by churning out automobiles on factory assembly lines. His firm introduced the Model T in 1908 and remained committed to it for the next twenty years. Mass production and economies of scale enabled the company to drop auto prices within reach of ordinary people. One model sold for as little as $280.
Henry Ford’s egotism and hardheadedness ultimately proved costly to the company. Associates urged him to move beyond production of the cheap, black Model T. In the 1920s a new corporation, General Motors, offered models in a variety of shapes and colors and with varying price points. Status-conscious buyers could choose an Oldsmobile, Buick, or Cadillac. Henry Ford rejected advice to change his business plan. Years later, he relented, but it was too late. In 1940, his company ranked third in U.S. vehicle sales behind General Motors and Chrysler.
Elon Musk also rocketed to fortune and fame. He co-founded an online bank that eventually became PayPal. In 2002 Musk created SpaceX, an aerospace company. He invested in Tesla in 2004 and became CEO in 2008. A Federal loan of $465 million helped Tesla begin mass-production of electric vehicles. Tesla now produces batteries and solar panels as well as autos.
Like Henry Ford, Elon Musk made controversial decisions that damaged his public image as a business genius. Most notable was an impetuous decision to purchase Twitter, the social media company. Musk later had second thoughts, but a judge required the acquisition to close. Musk bought Twitter for $44 billion (Bloomberg estimated Musk’s total wealth at the time was $181 billion). Committing 24% of his fortune to acquiring a company without adequate due diligence was a risky investment.
After taking control of Twitter, Musk announced draconian cost-cutting measures. He slashed Twitter’s workforce in half and sent threatening messages to the remaining employees. Musk’s chaotic leadership provoked an exodus of talented workers, nervous advertisers, and disillusioned customers. Struggling to rescue the company, Musk hinted that Twitter might have to declare bankruptcy. If the firm crashes shortly after the $44 billion purchase, his investment will constitute one of the greatest fiascos in modern business history.
Both Ford and Musk attempted to influence public opinion on topics beyond their areas of expertise. Both came under intense public criticism for allying with extremist political and social perspectives.
Henry Ford bought an obscure Michigan newspaper, the Dearborn Independent, increased its circulation enormously, and turned it into a major producer of antisemitic commentaries. The paper accused Jews of dominating American life in banking, the mass media, professional baseball, even jazz music. Most controversial was the newspaper’s publication of 91 articles that falsely claimed a vast Jewish conspiracy aimed at world domination. Ford’s auto dealerships from Massachusetts to California placed copies of the Dearborn Independent in showrooms and vehicles. Following complaints from Jewish leaders and a lawsuit, Ford apologized for the newspaper’s antisemitism.
Elon Musk came under criticism for numerous offensive tweets on Twitter. Musk questioned the safety of COVID-19 vaccines, posted offensive comments about women, and tweeted a photo of the Canadian prime minister that compared him to Adolph Hitler. Shortly after becoming the CEO at Twitter, Musk tweeted a link that suggested the violent attack on Paul Pelosi, husband of Democratic leader Nancy Pelosi, related to a “dispute with a male prostitute.” That lie had been circulating on far-right websites. Musk tweeted, “There is a tiny possibility there might be more to this story than meets the eye.” He deleted the tweet after an outburst of public criticism. Despite Elon Musk’s reputation as a brilliant businessman, he appeared naively trusting of disinformation circulating on the web.
Plunging into social and political controversy is not characteristic of all business dynamos. Bill Gates and Paul Allen, founders of Microsoft and Sergey Brin and Larry Page, founders of Google, were extraordinarily successful, yet they recognized the limits of their expertise. They did not frequently pontificate on subjects beyond their knowledge. When Bill Gates stepped outside his field of competence, devoting much of his post-retirement activity to improving global health, he first educated himself in relevant scientific and medical research.
Ford and Musk relied, instead, on prejudices and preconceptions when publishing and talking about current affairs. As folk heroes, they could spread disinformation easily. In the period Ford was promoting antisemitic viewpoints, a group of college students ranked him the third greatest figure of all time behind Napoleon and Jesus. In the early 1920s, many Republicans wanted Ford to run for President of the United States. Until recently, millions of Elon Musk’s admirers followed his tweets enthusiastically. The Verge’s June 2018 headline said, “The gospel of Elon Musk, according to his fans. Musketeers believe he will save the world.” An April 2022 headline in the Wall Street Journal announced, “Meet the Twitter Army of Elon Musk Superfans.” Musk’s fan base was 82 million-strong.
Energized by hubris, benefiting from great wealth, and buoyed by their reputations as geniuses, Ford and Musk achieved enormous influence. Unfortunately, crude observations revealed these two celebrities were ill-prepared to serve as wise commentators on public affairs.
