June 19, 2024
Elon Musk refutes PayPal co-founder's 'law', claims Peter Thiel initially refused to fund Tesla


Tesla Inc TSLA CEO Elon Musk expressed his disagreement on Sunday paypal co-founder ceo peter thielPopular ‘law’ on startups

What happened: “A startup that’s fundamentally flawed can’t be fixed,” Thiel told his student. blake masters At Stanford in 2012, a quote became known as Thiel’s Law.

Musk responded to the quote on Twitter and said that his EV venture Tesla was also ‘extremely messed up’ initially, but has since become one of the largest companies worldwide by market cap. Additionally, Thiel gave funding to Tesla when it was valued at about $70 million, a fraction of the current valuation, Musk said.

“While I have great respect for Peter’s intelligence, he clearly funded Tesla at a $70 million valuation despite being prioritized,” Musk wrote. Musk’s co-founded internet banking firm, X.com, merges with security software company Confinity peter thielin 2000. The merger of these two companies ultimately led to the birth of PayPal.

why it matters: Tesla went public in 2010. Its stock closed at $234.30 on Friday, up more than 18,000% year to date. The company’s market cap now stands at $742.564B and is ranked among the most valuable companies worldwide.

Musk has previously indicated that the company has the potential to further increase its valuation to trillions.

Earlier this month, Musk reiterated this sentiment Baron Capital ceo ron baron And said, “We’re going to have to hit the ball out of the park a lot of times to get that value, but I think we can.” Barron’s believes Tesla will achieve a market capitalization of $4 trillion in a decade.

Photo Courtesy: Wikimedia Commons

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Read further: Cruise CEO Kyle Vogt resigns amid safety concerns and suspension of operations at GM self-driving arm

Source: www.benzinga.com

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