Maybe a startup can have a high valuation for a while and ultimately be worth nothing. Maybe that has happened.
Maybe Musk will turn out to have created 10x more wealth than he has now. Maybe he will screw up and go broke.
Maybe both.
Where did Bernie Madoff's wealth come from before he got caught? Where did Sam Bankman-Fried's wealth come from? We can't just point to a unit of wealth and automatically applaud its legal owner as having created it. Maybe they created it. Maybe they stole it. Maybe we all wigged out and handed it to them voluntarily. It's case by case.
We all read Ayn Rand back in the day. And I can groove with that at a certain dosage, but you're taking way too much.
Bernie Madoff defrauded people by selling them fake investments.
Note that I remarked that free markets did not include fraud.
Excluding fraud, theft, and so forth, just by definition, means we're talking about a utopia. It's not a system, it's some beautiful subset of what's really going on. The subset would have to be carefully selected, using information we don't actually have until (maybe) much later. Maybe never.
This 'free market' is a bit like clean matter-antimatter power stations. They sound like a great idea. We could build them if we knew how.
I never claimed free markets were utopian. The purpose of government in a free market economy is to provide justice for acts of force or fraud, and provide enforcement of contracts.
There is no such thing as a perfect free market. However, history shows that the closer we are to them, the more prosperous the country is.
BTW, when the Soviet Union was formed, the communists did away with the police because there would no longer be a need for them. Oops.