Josh Wolfe of Lux Capital is a very successful and innovative venture capitalist. Maxwell Strachan interviewed him for The ‘To the Moon’ Crash Is Coming. I think Wolfe captures the essence of the problem:
I think a lot of people took the Elon playbook and basically said, If I just promised the moon, I can get too big to fail, I can just keep raising money as I raise expectations. And if I raise expectations, fundamentals don't matter. The only thing that matters is expectations. And if I can keep leading people—or in some cases misleading them—then it'll keep working if I don't get caught. And if I do get caught, in the case of Theranos or in the case of Nikola [Editor’s note: the electric-truck maker that paid a $125 million after the SEC charged the company’s founder with misleading investors over social media], maybe you pay a fine or you have your day in court, and maybe Theranos founder Elizabeth Holmes is found guilty or maybe the zeitgeist of the day surprises and she's not. But so far, there has been really no great penalty for people whose relationship with the truth is less than ideal.Musk doesn't care about the truth of his statements, or the impact of his companies' policies, because his wealth insulates him from consequences. If regulators or victims come after him he can tie them up in courts until their resources are exhausted or his fan-bois can make them irrelevant. Since Autonowashing I've been collecting illustrations of this attitude, and the time has come to lay out a sample of them below the fold.