In Chapter 5, Vance explores Musk’s transition from the sale of Zip2 to founding X.com, which later became PayPal. Following the sale of Zip2, Musk, now a multimillionaire, sought to revolutionize the banking industry by creating an online financial institution. He viewed traditional banks as inefficient and ripe for disruption. With his earnings from Zip2, Musk founded X.com in 1999, intending to offer a wide range of financial services online, including banking, brokerage, and insurance.

Musk’s vision for X.com was ambitious, aiming to create a comprehensive online financial platform. However, the challenges were significant, including regulatory hurdles and consumer skepticism about online banking. Despite these obstacles, Musk assembled a talented team and launched X.com in November 1999. The company initially attracted users by offering cash incentives and eliminating typical bank fees, quickly gaining traction.

Simultaneously, a competing start-up called Confinity, founded by Max Levchin and Peter Thiel, was developing a similar online payment system. The competition between X.com and Confinity intensified, with both companies vying for dominance in the emerging online payment market. The rivalry culminated in a merger in March 2000, with the combined company retaining the X.com name but eventually rebranding as PayPal.