Billionaire Elon Musk has a unique attitude when it comes to the subjects of money mistakes and failures. Musk has stated that failure is a necessary byproduct of the very same innovations and risks that have led him to becoming the world’s richest human. “Failure is an option here,” Musk said of SpaceX, his space technology company. “If things are not failing, you are not innovating enough.”
Read Next: 4 Mistakes the Upper Middle Class Are Making With Their Money in the Trump Economy
Check Out: 10 Cars That Outlast the Average Vehicle
That said, while innovation can lead to failure, failure in and of itself does not have to be seen as a dead end or a defeat. Failure can be learned from, innovated and even profited upon. There are a number ways in which mistakes can be used as forms of self-education and course-correction. Here are a few of Musk’s such mistakes and what can be learned from them.
Mixing Money With Politics
Musk rather infamously was a committed political donor and spokesman for President Donald Trump’s reelection in 2024, investing millions in Trump’s campaign and even going so far as to (briefly) join the Trump administration as the head of the Department of Government Efficiency (DOGE).
However, his union with Trump was a costly one. Tesla sales and stock dipped, and shareholders “practically begged” Musk to leave DOGE, Fortune reported. Eventually, Trump and Musk had a bitterly public war of words over Trump’s “Big Beautiful Bill,” with Musk even threatening to start his own political party. Due in large part to Tesla’s stock struggles, Musk has seen his net worth fall by $80 billion this year, per Fortune.
Musk has since toned down both some of his political rhetoric as well as his direct barbs at Trump. He’s said he is now focused on Tesla and admitted that he regretted some of his social media posts about the president.
Be Aware: Avoid This Retirement Savings Mistake That’s Costing Americans Up To $300K
Don’t Overspend Just Because You Want Something
Perhaps it’s due to his seemingly inexhaustible financial resources, but Musk has had a tendency in the past to overinvest when he wants something, spending far more than something is worth to attain.
Case in point: Musk spending $44 billion to acquire the social media platform Twitter (now known as X). After that stunning expenditure, X was saddled with technical problems and decreased in value by $25 billion in response to Musk’s takeover.
The lesson here? If something requires that amount of overspending to attain it, it may not be worth it.
Luckily for Musk, he has the financial ability to experience such failures affordably and learn from them. Many other people, however, might not have access to Musk’s $400 billion — so it could be good to learn a lesson or two from his mistakes without having to make them yourself.
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
More From GOBankingRates
- 6 Costco Products That Have the Most Customer Complaints
- 5 Ways Trump Signing the GENIUS Act Could Impact Retirees
- 25 Places To Buy a Home If You Want It To Gain Value
- How Far $750K Plus Social Security Goes in Retirement in Every US Region
This article originally appeared on GOBankingRates.com: 2 of Elon Musk’s Top Money Mistakes (and What Can Be Learned From Them)
