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Mysterio is a former Stark Industries employee who was fired by Tony Stark and wants revenge by becoming the new Iron Man and usurping Stark's place as Earth's greatest hero.

He creates the Elementals through a combination of illusions and advanced drones of his own design, and concots an elaborate fictional backstory about being a great hero from a parallel universe to manipulate Nick Fury into recruiting him for his new team.

Mysterio's plan actually succeeds, and he is embraced as a hero by the population. He also develops a genuine bond with Spider-Man over the course of his ruse, which is shattered when Spider-Man discovers the truth and refuses to join him. This results in a vicious battle in which Mysterio appears to die when several of his drones explode.

In the mid-credits scene, "someone" sends major media outlets doctored footage of the fight between Spider-Man and Mysterio, edited to make Spider-Man appear to be criminal and exposing his secret Identity to the world.