Running PayPal vs Space X vs Tesla requires a ton of different skills and competencies. Tesla is a huge engineering effort and assembly line engineering effort. They've pioneered a number of innovative technologies and approaches. Likewise, Space X has pioneered incredible technology and you can't simply be a passive CEO to achieve those things. It's not like running a laundromat. Musk is a central figure in both of those companies. If you watch his interviews, he has a deep understanding of every level of engineering in both of those companies.
And yet every time they/he gets in trouble is when he veers out of his lane into micromanaging things he has no business in. If his deep knowledge of engineering is critical to their success, that's actually a massive failure of leadership. It's not how you build sustainable things that outlast yourself.
No, it's not a massive failure. There are many different styles of leadership. There is not one single formula that works for all companies and all circumstances. To look at a historical example, Thomas Edison was a profound engineer and a very capable inventor as well as CEO. Obviously, there's a difference between Musk and say, Richard Branson. There's a difference between Bill Gates and Steve Jobs. They found success with different models of leadership.