Dalio says he warned Musk to save cash before Mars bet

Ray Dalio said he warned Elon Musk more than two decades ago not to risk too much of his PayPal proceeds on a plan to reach Mars. The account sheds light on the ambition behind SpaceX as investors assess the rocket company after its public-market debut.

Dalio, the founder of Bridgewater Associates, discussed the exchange on the My First Million podcast in an episode released over the weekend. He said he met Musk in 2002 while studying the personality traits of founders and entrepreneurs.

According to Dalio, Musk had recently received about $180 million from the sale of PayPal and was prepared to commit a large share of it to space exploration. Dalio said he advised Musk to set aside some money in case the Mars effort failed.

Dalio said Musk rejected the idea. Musk’s response, according to Dalio, was: “No, I don’t need to do that.”

SpaceX’s mission under investor scrutiny

Fortune reported that SpaceX listed on the Nasdaq this summer in what it described as the largest IPO in history. The listing gave analysts a closer look at the company’s business at a time when its satellites, rockets and AI-related capabilities are drawing investor attention.

Fortune reported that SpaceX’s prospectus framed the company’s purpose in sweeping terms: developing the systems and technology needed to make human life multiplanetary, study the universe and push consciousness beyond Earth. Musk has pursued the Mars goal for more than 20 years, according to Fortune.

Dalio described Musk on the podcast as a “shaper,” using his term for people driven to turn a vision into a finished reality. He said Musk’s relationship with money differed from that of many wealthy founders, arguing that Musk was not mainly motivated by personal comfort or status.

Fortune noted that Musk has publicly described an austere work life. He has said he slept under his desk while working at Tesla and referred to the company’s factories as his main residence. Fortune also cited past reports that Musk slept on sofas at Twitter’s offices after buying the company and told friends he was sleeping at DOGE headquarters during his time in Washington.

Musk has also recalled nearly needing to borrow money for rent after the PayPal sale because he had put the proceeds into his companies, according to Fortune. He said he invested $100 million in SpaceX, $70 million in Tesla and $10 million in SolarCity.

Big vision, small details

Dalio said Musk’s style combined broad ambition with close attention to product details. He recalled Musk showing him features in a car, apparently a Tesla, while also discussing an idea to send a plant and watering can on a rocket to Mars.

Dalio summed up that range as thinking at both a high altitude and at close range. His comments portrayed Musk’s Mars push as less a financial calculation than a founder’s mission, even when the risk was personal.

This story draws on original reporting from Fortune.