What we have now is barely capitalism.

We have some of the most naked and predatory methods of rent seeking imaginable. How on earth is this "barely" capitalism? It is quintessential capitalism. A near-perfect engine of consolidation, profit-seeking, and value growth.

Back in the day, companies actually competed

Competition isn't the goal of existing capitalist enterprises. It raises unit costs and dilutes profit. Competition is only a means by which a large enterprise temporarily undercuts a smaller local enterprise, until it is starved of revenue and fails. To quote Peter Thiel, "Monopoly is the condition of every successful business."

If there’s no competition, markets can’t work.

The purpose of markets is to marry nodes in the supply chain at an auction rate. But once the marriages are made, the market no longer serves a purpose. Markets are only a transitory vehicle leading to full vertical integration of the supply chain.

Once you've achieved a vertical monopoly, your business model pivots to maximizing margins by raising prices and lowering costs. That's how you maximize profits. And maximizing profits is the only real goal of a private business enterprise.

you need a robust safety net so people aren’t destitute when some idiot like Musk drives a company into the ground

You don't want a robust safety net in a capitalist system. Safety nets create a subsidy for unemployment - functionally a wage floor, beyond which people would prefer to be unemployed. Without the threat of poverty hanging over a worker's head, you won't get the lowest possible wage rate for their labor. This drives up costs and cuts into profits, which is antithetical to the goals of a capitalist enterprise.

Musk driving his business into the ground serves the end goals of a capitalist system overall (even if it marginally inconveniences Musk and his lenders in the moment). The failure of his firm releases workers into the unemployment pool and allows competitors to hire them at a discount - potentially displacing existing workers who command a higher salary. While Musk's business flounders, the overall auto market prospers. The profit generated in an individual vehicle sale rises, as supply of vehicles contracts - driving prices up - and cost of labor falls - driving unit costs down.

This is good for the surviving pool of capitalists. Its even good for Musk, over the long term, as a higher rate of profit means more cheap money in the investment pool that he can borrow from in order to pursue his next project.