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Elon Musk on Failure: A Crucial Step Towards Success
- Startup Bell
- Jun 19, 2024
- 6 min read
Updated: Apr 17
Elon Musk might be the closest thing the modern world has to a real-life Iron Man. With Tesla, SpaceX, Neuralink, and The Boring Company under his belt, it’s tempting to view Musk as a man who simply doesn’t fail. But nothing could be further from the truth.
When asked, "What was your biggest failure and how did it change you?", Musk paused and said:
"I have to really think hard about that. Failure? I've never heard of it. Well, there's a ton of failures along the way, that's for sure."
This quote sets the tone for something every aspiring entrepreneur needs to hear: failure is not a bug in the system, it's a feature. Let’s take a deep dive into how Musk's journey through failure helped shape his greatest successes, and what you can learn from it.
The Early Struggles of SpaceX
SpaceX, now a pioneering force in space exploration and rocket technology, wasn't always the success story we know today. The company's beginnings were fraught with challenges that would have deterred most entrepreneurs.
"For SpaceX, the first three launches failed and we were just barely able to scrape together enough parts and money to do the fourth launch. If that fourth launch had failed, we would have been dead."
Imagine the pressure of knowing that your entire company's future rests on a single rocket launch. After three consecutive failures, most investors would have pulled their funding, and most founders would have abandoned the project. But Musk persevered.
The first Falcon 1 rocket launch in March 2006 ended in failure just 33 seconds after liftoff due to a fuel leak and fire. The second attempt in March 2007 reached space but didn't achieve orbit after the second stage engine shut down prematurely. The third launch in August 2008 failed when the first and second stages collided during separation.
Each failure cost millions of dollars and brought SpaceX closer to bankruptcy. Yet with every setback, Musk and his team gathered valuable data, refined their approach, and tried again.
With his back against the wall, Musk and the SpaceX team prepped Falcon 1 for its fourth and possibly final launch. Every engineer, technician, and leader knew what was at stake.
And then, on September 28, 2008, it launched.
The rocket not only took off successfully but reached orbit, making SpaceX the first privately funded company to do so. That success changed everything.
NASA took notice and awarded SpaceX a $1.6 billion contract. That deal effectively saved the company and launched it into the stratosphere (literally and figuratively).
Lesson: Bet on Yourself, Even When No One Else Will
Musk risked everything. His personal fortune. His reputation. Even his mental health. And it paid off because he refused to let failure define the end of the road. It was just a detour.
This persistence through repeated failures fundamentally shaped SpaceX's culture and Musk's approach to innovation. It wasn't just about bouncing back—it was about learning from each attempt and improving for the next one.
Taking on Unexpected Roles
Another fascinating aspect of Musk's reflection on failure is how it forced him to step into roles he hadn't anticipated:
"I tried very hard to get the right expertise in for SpaceX. I tried hard to find a great chief engineer for the rocket, but the good chief engineers wouldn't join. And the bad ones, well, there was no point in hiring them. So, I ended up being chief engineer of the rocket."
This admission reveals a common challenge for visionary entrepreneurs: sometimes, to bring a revolutionary idea to life, you have to become the expert yourself. When Musk founded SpaceX in 2002, the concept of a private company developing orbital rockets was considered almost laughable by industry standards. Established aerospace engineers were hesitant to join what many viewed as a doomed venture.
Rather than compromising on quality or abandoning his vision, Musk took on the technical challenge himself. He immersed himself in rocket science, studying textbooks and consulting with experts until he could serve as SpaceX's chief engineer. This wasn't just a title—it meant making critical technical decisions that would determine whether rockets worth tens of millions of dollars would succeed or fail.
"So, if I could have found somebody better, then we would have maybe had less than three failures."
There's a touching humility in this statement. Musk acknowledges that his learning curve likely contributed to some of those early failures. Yet this necessity—becoming an expert in rocket engineering because he couldn't hire one—ultimately gave him deeper insights into the technical challenges SpaceX needed to overcome.
Lesson: If You Can't Find the Right Person, Become That Person
Many startups fail because they wait for the perfect team member to show up. Musk didn’t wait. He filled the gap himself, even when it was outside his comfort zone. Entrepreneurs, take note: your startup won’t wait for the perfect hire.
Tesla: Another Road Paved with Failures
While SpaceX was melting through millions, Tesla wasn't having a picnic either. The electric car company faced brutal challenges in production, design, and public perception.
Tesla's first attempt at production, the Roadster, faced significant delays and cost overruns. The original transmission design proved unreliable, forcing a complete redesign that added months to the timeline and millions to the budget. Early production vehicles suffered from quality issues that threatened the company's reputation before it was even established.
During the 2008 financial crisis, Tesla came within days of bankruptcy. Both Tesla and SpaceX were on the brink of collapse. Musk had to make a gut-wrenching decision: split his remaining funds between both companies and risk losing everything, or pick one and let the other die.
He chose to save both.
Musk made the difficult decision to lay off about 25% of Tesla's workforce and personally invested his remaining capital from the sale of PayPal to keep the company afloat. On December 23, 2008—literally days before Tesla would have run out of money—the company secured the final portion of a $40 million investment round that saved it from collapse.
That winter, Tesla got investment just in time, and SpaceX got the NASA deal.
Fast forward to today: Tesla is the most valuable car company in the world, and SpaceX is redefining space travel.
Lesson: Sometimes, You Have to Risk Everything Twice
Most people avoid risk. Musk embraced it. His gamble didn’t just pay off; it created industries.
The Public Failures
Musk's failures aren’t limited to the early days. They're public and ongoing.
Tesla’s Autopilot has faced scrutiny for accidents and system failures.
The Cybertruck was ridiculed when its "shatterproof" windows shattered on stage.
Neuralink and The Boring Company are still struggling to deliver on their bold promises.
But here's what sets Musk apart: he doesn't shy away from failure. He talks about it. Learns from it. Then builds again.
"Failure is an option here. If things are not failing, you are not innovating enough."
Lesson: Fail Forward, Not Backward
It’s not about avoiding failure; it’s about what you do next. Musk turns every crash, every delay, every criticism into fuel.
Examples of Embracing Failure
Elon Musk's story is far from unique. Many successful entrepreneurs have faced significant failures before achieving their goals. Here are a few notable examples:
Henry Ford
Henry Ford, the founder of Ford Motor Company, experienced numerous failures before revolutionizing the automobile industry. His first two companies, the Detroit Automobile Company and the Henry Ford Company, both failed. However, Ford learned from these setbacks and eventually created the Ford Motor Company, introducing the Model T and pioneering assembly line production.
Colonel Harland Sanders
Colonel Harland Sanders, the founder of Kentucky Fried Chicken (KFC), faced numerous rejections before finding success. After retiring, Sanders traveled across the United States, pitching his fried chicken recipe to restaurant owners. He was rejected over a thousand times before finally securing a deal. Today, KFC is one of the largest fast-food chains in the world.
Steve Jobs
Fired from Apple, the company he founded. Most people would be shattered. Instead, Jobs founded NeXT and bought Pixar. Both succeeded wildly. Apple later bought NeXT, and Jobs returned as CEO.
His failures led him to learn, mature, and eventually launch the iPhone—a product that redefined the 21st century.
Walt Disney
Fired by a newspaper editor for "lacking imagination." His first studio went bankrupt. But he didn’t stop. He created Mickey Mouse while nearly broke. Today, Disney is one of the most powerful brands in the world.
Final Thoughts: What You Can Learn from Elon Musk
Elon Musk is not successful because he avoided failure. He’s successful because he embraced it, learned from it, and used it to fuel his next move.
Here’s What You Should Remember:
Failure isn’t fatal unless you stop trying.
Your worst moments often precede your biggest breakthroughs.
You don’t need to be the expert. But if no one else will do it, become the expert.
Risk is scary. But playing it safe rarely leads to game-changing success.
So the next time you hit a wall, remember Elon Musk and the fourth launch. You might be just one step away from orbit.
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