economy
February 1, 2026
Bye-bye corporate conglomerates. Hello personal conglomerates.
Elon Musk's reported merging of SpaceX, xAI, and Tesla harkens back to the heyday of General Electric — or maybe the robber barons of the Gilded Age.
TL;DR
- Elon Musk leads multiple companies including Tesla, xAI, SpaceX, Starlink, X, Neuralink, and The Boring Company.
- Musk's ventures are showing signs of integration, with Tesla, SpaceX, and xAI investing in each other.
- Comparisons are drawn between Musk and historical figures like Henry Ford, John D. Rockefeller, and Jack Welch.
- Jack Welch's leadership at GE, which evolved into a sprawling conglomerate, is a key point of comparison.
- GE's conglomerate structure eventually faced issues, leading to its breakup.
- Musk's personal net worth is approaching $800 billion, comparable to GE's peak market cap.
- The "robber baron" comparison, referencing figures like Rockefeller, highlights themes of immense wealth and industry control.
- Historical robber barons' power was unchecked by regulation, unlike the current era, though regulation is noted as potentially decreasing.
- Musk's influence extends to political spending, with over $300 million spent on elections.
- Conglomerates, once popular for hedging risk, are now seen as less efficient and subject to a "conglomerate discount."
- Future constraints on Musk's power may come from regulation, influenced by public opinion, similar to the Progressive Era's impact on Gilded Age tycoons.
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