In a sharp rebuttal to a long-circulated tech industry story, billionaire Elon Musk has categorically denied that fellow entrepreneur Peter Thiel fired him from the CEO role at PayPal in the year 2000. Musk took to his social media platform X, formerly Twitter, to set the record straight, labelling his removal a calculated "palace coup" by the company's leadership.
The Spark: A Podcast Claim and Musk's Fiery Rebuttal
The tech mogul was responding to a clip from a podcast that repeated the common narrative of "Peter Thiel firing Elon Musk," suggesting it was a kind, respectful transition. Musk swiftly corrected this, emphasising the actual chain of command. "I was CEO and Peter reported to me, so could not fire me," Musk stated. He attributed his ousting to a move by most of the executive team and board members who were anxious about his strategic choices being too risky.
Further asserting his position, Musk highlighted, "I was the largest shareholder in the company. There was nothing anyone could have done to take my shares away from me." The podcast had noted that Musk departed with an approximate 12% stake in PayPal and later maintained a business relationship with Thiel, notably allowing Thiel's Founders Fund to invest $20 million in SpaceX for a 10% stake—a deal hailed as historic.
The 2000 Ousting: A Honeymoon and a High-Risk Decision
According to biographer Walter Isaacson and other reports, the plot to remove Musk unfolded in September 2000 while he was away on his honeymoon. A group of senior executives and board members, concerned about Musk's vision, orchestrated the change. Key figures in this move reportedly included investor Peter Thiel, board member Reid Hoffman, and product chief David Sacks.
The immediate trigger for the coup was reportedly Musk's controversial plan to migrate PayPal's entire technical infrastructure from Unix to Microsoft Windows—a decision perceived as dangerously risky by the team. Sensing trouble from Australia due to increased pushback, Musk cut his honeymoon short and flew back to the San Francisco Bay Area, but the move was already in motion. Peter Thiel, who had been CEO before Musk, was reinstated as the chief executive.
Aftermath and Reflection: From Anger to SpaceX
Musk admitted to Isaacson that his initial reaction was one of fury, even having dark thoughts. However, his perspective changed with time. He came to believe that being ousted was ultimately beneficial, freeing him to pursue ventures like SpaceX and Tesla. "Otherwise I’d still be slaving away at PayPal… Of course, if I had stayed, PayPal would be a trillion-dollar company," Musk remarked, blending humility with his characteristic ambition.
The episode, often recounted as a footnote in the lore of the "PayPal Mafia," is now clarified by its central figure. It underscores the intense boardroom battles of early dot-com era companies and reshapes the understanding of one of modern tech history's most pivotal leadership changes.
