Musk Calls SoftBank's WeWork Bet Dumb

Elon Musk said SoftBank should have put $12 billion into Tesla rather than WeWork, which later filed for bankruptcy.

Updated on Nov. 11, 2026 in Business Strategy

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Elon Musk posted on X that SoftBank's roughly $16 billion investment in WeWork was dumb, arguing that $12 billion put into Tesla would have bought a one-quarter stake to help take the company private. WeWork filed for bankruptcy in November.

Why it matters

The post revisits a high-profile venture bet that ended in bankruptcy, drawing a sharp contrast with Musk's view of Tesla's value. It highlights how investors weigh large allocations between speculative private companies and established public ones.

Musk's post cites a $12 billion proposal for roughly a 25% Tesla stake, a stake he values at $375 billion against Tesla's $1.5 trillion market value, compared with SoftBank's roughly $16 billion WeWork investment. The article does not establish whether that Tesla proposal was ever formally made.

The players

Elon Musk

Elon Musk is the chief executive of Tesla and a prominent entrepreneur known for his outspoken commentary on business and markets, and is 55 years old.

SoftBank

SoftBank is a Japanese multinational conglomerate and technology investor known for large stakes in companies including Alibaba and WeWork.

WeWork

WeWork is a shared office space company that became a prominent example of a high-valuation startup and later filed for bankruptcy.

The details

Musk said in a post on the social platform X that SoftBank invested $12 billion in WeWork instead of putting that amount into Tesla to acquire one-quarter of the company and help take it private. He also noted that SoftBank's Alibaba investment, which began at $20 million, grew into tens of billions of dollars.

November: WeWork filed for bankruptcy.
November 11, 2026: Musk posted his remarks on X about SoftBank's WeWork investment.

Investment Track Record

SoftBank's early $20 million stake in Alibaba grew into tens of billions of dollars, a result Musk sets against the later WeWork investment that ended in bankruptcy. The contrast frames the debate over how large conglomerates allocate capital between high-growth private firms and public companies.

Investors weighing where to place large sums can compare concentrated bets on private startups against stakes in established public companies. The episode shows how a single high-profile investment decision can shape a firm's reputation for years.

The takeaway

Large investments in private companies carry risks that public stakes may not, and the outcome of a single bet can define how an investor is judged. Readers evaluating their own portfolios should weigh concentration risk alongside potential upside.