Elon Musk is building a form of capitalism that Adam Smith would hate

Critics argue his model concentrates power in ways that undermine traditional shareholder democracy, while supporters frame it as a necessary adaptation for innovation-driven companies. Coverage from *The Economist* and *Fortune* highlights how SpaceX’s IPO plans and Musk’s governance tactics are forcing regulators and investors to re-examine the balance between founder control and shareholder rights. *The Economist* and *Fortune* emphasize the tension between Musk’s vision of concentrated leadership and the governance norms of public markets.

Neuberger Berman’s analysis frames the issue as a test for institutional investors, who must now weigh the risks of entrusting outsized influence to a single executive. Meanwhile, *Haaretz* challenges Musk’s self-mythologizing, questioning the extent to which his ventures reflect meritocratic capitalism rather than inherited advantage.

Watch for regulatory responses to Musk’s governance model, particularly as SpaceX’s IPO nears. Legal challenges or shareholder activism could redefine the boundaries of corporate power—or solidify Musk’s approach as a new standard for tech-driven enterprises.