How Elon Thinks

My friend Eric Jorgensson has spent a My friend Eric Jorgensson has spent a few years and thousands and thousands of few years and thousands and thousands of few years and thousands and thousands of hours reading everything that Elon has hours reading everything that Elon has hours reading everything that Elon has written, reading everything that has written, reading everything that has written, reading everything that has written about Elon, watching every written about Elon, watching every written about Elon, watching every single interview that Elon has ever single interview that Elon has ever single interview that Elon has ever given. And then he compiled all of given. And then he compiled all of given. And then he compiled all of Elon's most useful ideas into the book Elon's most useful ideas into the book Elon's most useful ideas into the book that I'm holding in my hand, which is that I'm holding in my hand, which is that I'm holding in my hand, which is the book of Elon. The subtitle is Elon's the book of Elon. The subtitle is Elon's the book of Elon. The subtitle is Elon's most useful ideas in his own words. I'm most useful ideas in his own words. I'm most useful ideas in his own words. I'm going to read one line from Eric about going to read one line from Eric about going to read one line from Eric about the benefit that he experienced from the benefit that he experienced from the benefit that he experienced from doing this and then from here on out doing this and then from here on out doing this and then from here on out every other thing will be Elon in his every other thing will be Elon in his every other thing will be Elon in his own words. Eric writes, "To me, Elon own words. Eric writes, "To me, Elon own words. Eric writes, "To me, Elon represents the idea that I am capable of represents the idea that I am capable of represents the idea that I am capable of more than I ever imagined." And so, I'm more than I ever imagined." And so, I'm more than I ever imagined." And so, I'm just going to run through in just going to run through in just going to run through in chronological order all the notes and chronological order all the notes and chronological order all the notes and highlights I took from reading and highlights I took from reading and highlights I took from reading and rereading this book. The idea is I want rereading this book. The idea is I want rereading this book. The idea is I want this to feel as if Elon is speaking this to feel as if Elon is speaking this to feel as if Elon is speaking directly to you and I. Okay, so it directly to you and I. Okay, so it directly to you and I. Okay, so it starts out. Elon says, "I don't mind if starts out. Elon says, "I don't mind if starts out. Elon says, "I don't mind if my legacy is accurate or inaccurate. As my legacy is accurate or inaccurate. As my legacy is accurate or inaccurate. As long as I die feeling I've done the long as I die feeling I've done the long as I die feeling I've done the right thing for the future of right thing for the future of right thing for the future of consciousness." Elon gives a lot of consciousness." Elon gives a lot of consciousness." Elon gives a lot of advice centered around making sure that advice centered around making sure that advice centered around making sure that you're living a useful life, building you're living a useful life, building you're living a useful life, building things that make other people's lives things that make other people's lives things that make other people's lives better is the way I think about this. He better is the way I think about this. He better is the way I think about this. He says, "You can choose to not be says, "You can choose to not be says, "You can choose to not be ordinary. You can choose not to conform ordinary. You can choose not to conform ordinary. You can choose not to conform to the conventions taught to you by your to the conventions taught to you by your to the conventions taught to you by your parents. It's possible for ordinary parents. It's possible for ordinary parents. It's possible for ordinary people to choose to be extraordinary. Be people to choose to be extraordinary. Be people to choose to be extraordinary. Be useful. The measure of success in my useful. The measure of success in my useful. The measure of success in my life is how many useful things can I get life is how many useful things can I get life is how many useful things can I get done. I wake up in the morning and ask done. I wake up in the morning and ask done. I wake up in the morning and ask how can I be useful today? I want to how can I be useful today? I want to how can I be useful today? I want to maximize my utility. I try to take the maximize my utility. I try to take the maximize my utility. I try to take the set of actions most likely to improve set of actions most likely to improve set of actions most likely to improve the probability that the future will be the probability that the future will be the probability that the future will be good. Do useful things for your fellow good. Do useful things for your fellow good. Do useful things for your fellow human beings. It is hard to be useful to human beings. It is hard to be useful to human beings. It is hard to be useful to contribute more than you consume. Can contribute more than you consume. Can contribute more than you consume. Can you have a positive net contribution to you have a positive net contribution to you have a positive net contribution to society? Aim for that. I have a lot of society? Aim for that. I have a lot of society? Aim for that. I have a lot of respect for someone who puts in an respect for someone who puts in an respect for someone who puts in an honest day's work to do useful things. I honest day's work to do useful things. I honest day's work to do useful things. I admire anyone making a positive admire anyone making a positive admire anyone making a positive contribution to humanity. And then Elon contribution to humanity. And then Elon contribution to humanity. And then Elon was asked the question like, "How do you was asked the question like, "How do you was asked the question like, "How do you know if you're helping?" And I liked his know if you're helping?" And I liked his know if you're helping?" And I liked his answer here. "How many people did you answer here. "How many people did you answer here. "How many people did you help multiplied by how much help you help multiplied by how much help you help multiplied by how much help you provided each person on average?" For provided each person on average?" For provided each person on average?" For any product you're trying to create, ask any product you're trying to create, ask any product you're trying to create, ask yourself the utility improvement yourself the utility improvement yourself the utility improvement compared to the current state of the art compared to the current state of the art compared to the current state of the art multiplied by how many people it would multiplied by how many people it would multiplied by how many people it would affect. Building something that makes a affect. Building something that makes a affect. Building something that makes a big difference to a small number of big difference to a small number of big difference to a small number of people is just as great as something people is just as great as something people is just as great as something that makes a small difference for a vast that makes a small difference for a vast that makes a small difference for a vast number of people. Not every product will number of people. Not every product will number of people. Not every product will change the world, but if it's making change the world, but if it's making change the world, but if it's making people's lives better, that's great. And people's lives better, that's great. And people's lives better, that's great. And so then he talks about what he's trying so then he talks about what he's trying so then he talks about what he's trying to do is make the future better by to do is make the future better by to do is make the future better by developing new technology. The future developing new technology. The future developing new technology. The future will not get here fast enough unless we will not get here fast enough unless we will not get here fast enough unless we force it. I came to the conclusion that force it. I came to the conclusion that force it. I came to the conclusion that if we can advance the knowledge of the if we can advance the knowledge of the if we can advance the knowledge of the world, if we can do things that expand world, if we can do things that expand world, if we can do things that expand the scope and scale of consciousness, the scope and scale of consciousness, the scope and scale of consciousness, then we're better able to ask the right then we're better able to ask the right then we're better able to ask the right questions and become more enlightened. questions and become more enlightened. questions and become more enlightened. And so he's asked a follow-up to this. And so he's asked a follow-up to this. And so he's asked a follow-up to this. What do you think is your most core What do you think is your most core What do you think is your most core skill? He says, I devote myself to the skill? He says, I devote myself to the skill? He says, I devote myself to the advancement of humanity using advancement of humanity using advancement of humanity using technology. My core personal competence technology. My core personal competence technology. My core personal competence is technology. I want to build wondrous is technology. I want to build wondrous is technology. I want to build wondrous new technologies where you feel awe when new technologies where you feel awe when new technologies where you feel awe when you see it. How does that even happen? you see it. How does that even happen? you see it. How does that even happen? How is that even possible? And then he How is that even possible? And then he How is that even possible? And then he talks about the motivations behind talks about the motivations behind talks about the motivations behind starting his companies and he's giving starting his companies and he's giving starting his companies and he's giving advice to fellow entrepreneurs. Don't advice to fellow entrepreneurs. Don't advice to fellow entrepreneurs. Don't start a company because you want to be start a company because you want to be start a company because you want to be an entrepreneur or because you want to an entrepreneur or because you want to an entrepreneur or because you want to make money. It is better to approach make money. It is better to approach make money. It is better to approach from this angle. What is the useful from this angle. What is the useful from this angle. What is the useful thing you could build that you wish thing you could build that you wish thing you could build that you wish existed in the world. I did not start existed in the world. I did not start existed in the world. I did not start companies from the standpoint of what's companies from the standpoint of what's companies from the standpoint of what's the best risk adjusted rate of return or the best risk adjusted rate of return or the best risk adjusted rate of return or what I think could be successful. I just what I think could be successful. I just what I think could be successful. I just find things that need to happen and try find things that need to happen and try find things that need to happen and try to make them happen. I thought these to make them happen. I thought these to make them happen. I thought these things needed to get done. If my money things needed to get done. If my money things needed to get done. If my money was lost, okay, it was still worth was lost, okay, it was still worth was lost, okay, it was still worth trying. And then once you figure out trying. And then once you figure out trying. And then once you figure out what to work on, he says, then try to what to work on, he says, then try to what to work on, he says, then try to get other people to work with you to get other people to work with you to get other people to work with you to create that thing. Keep making it better create that thing. Keep making it better create that thing. Keep making it better and better. If you create something and better. If you create something and better. If you create something useful, money will be the result. A useful, money will be the result. A useful, money will be the result. A properly working economy rewards the properly working economy rewards the properly working economy rewards the creation of useful goods and services. creation of useful goods and services. creation of useful goods and services. Successful entrepreneurs come in all Successful entrepreneurs come in all Successful entrepreneurs come in all sizes, shapes, and flavors. I'm not sure sizes, shapes, and flavors. I'm not sure sizes, shapes, and flavors. I'm not sure there's any one particular trait that there's any one particular trait that there's any one particular trait that makes them. If there is only one, have makes them. If there is only one, have makes them. If there is only one, have an obsessive nature about the quality of an obsessive nature about the quality of an obsessive nature about the quality of the product. In this context, being the product. In this context, being the product. In this context, being obsessivempulsive is a good thing. Given obsessivempulsive is a good thing. Given obsessivempulsive is a good thing. Given that really, really, really liking what that really, really, really liking what that really, really, really liking what you do is a big advantage. If you like you do is a big advantage. If you like you do is a big advantage. If you like what you're doing, you think about it what you're doing, you think about it what you're doing, you think about it even when you're not working. And then even when you're not working. And then even when you're not working. And then he talks about the inevitable pain that he talks about the inevitable pain that he talks about the inevitable pain that comes from building a company. I always comes from building a company. I always comes from building a company. I always tell you my one of my favorite maxims tell you my one of my favorite maxims tell you my one of my favorite maxims from the history of entrepreneurship from the history of entrepreneurship from the history of entrepreneurship comes from the founder of Four Seasons. comes from the founder of Four Seasons. comes from the founder of Four Seasons. He says, "Excellence is the capacity to He says, "Excellence is the capacity to He says, "Excellence is the capacity to take pain." Elon says, "My way of take pain." Elon says, "My way of take pain." Elon says, "My way of dealing with mental problems is to make dealing with mental problems is to make dealing with mental problems is to make sure you really care about what you're sure you really care about what you're sure you really care about what you're doing and then take the pain." On the doing and then take the pain." On the doing and then take the pain." On the next page, he follows up on that. If you next page, he follows up on that. If you next page, he follows up on that. If you need encouragement, don't start a need encouragement, don't start a need encouragement, don't start a company. And then he talks about that company. And then he talks about that company. And then he talks about that humanity fails over and over again about humanity fails over and over again about humanity fails over and over again about predicting the popularity or the uses predicting the popularity or the uses predicting the popularity or the uses for the invention of new technology. for the invention of new technology. for the invention of new technology. When you're building a radically new When you're building a radically new When you're building a radically new product, people don't know they want it product, people don't know they want it product, people don't know they want it yet. When they first started making TVs, yet. When they first started making TVs, yet. When they first started making TVs, they did a famous nationwide survey. they did a famous nationwide survey. they did a famous nationwide survey. Will you ever buy a TV? And around 96% Will you ever buy a TV? And around 96% Will you ever buy a TV? And around 96% of respondents said no. Then he goes of respondents said no. Then he goes of respondents said no. Then he goes back to this reoccurring theme that he back to this reoccurring theme that he back to this reoccurring theme that he repeats that you should be creating more repeats that you should be creating more repeats that you should be creating more than you're consuming. It is much better than you're consuming. It is much better than you're consuming. It is much better to work on adding to the economic pie. to work on adding to the economic pie. to work on adding to the economic pie. Create more than you consume. A lot of Create more than you consume. A lot of Create more than you consume. A lot of this book goes into his work ethic. The this book goes into his work ethic. The this book goes into his work ethic. The fact that he thinks the things that he fact that he thinks the things that he fact that he thinks the things that he is working on are very important. So is working on are very important. So is working on are very important. So therefore, he's willing to endure a lot therefore, he's willing to endure a lot therefore, he's willing to endure a lot of times of just pain and suffering. of times of just pain and suffering. of times of just pain and suffering. Says, "Work like hell. I am wired for Says, "Work like hell. I am wired for Says, "Work like hell. I am wired for war." He's asked the question, "Why war." He's asked the question, "Why war." He's asked the question, "Why doesn't the world have more Elon Musks?" doesn't the world have more Elon Musks?" doesn't the world have more Elon Musks?" If you think you want to be me or do the If you think you want to be me or do the If you think you want to be me or do the things I've done, I would say you're things I've done, I would say you're things I've done, I would say you're probably mistaken. Long periods of my probably mistaken. Long periods of my probably mistaken. Long periods of my life have been very painful and life have been very painful and life have been very painful and difficult. The amount I torture myself difficult. The amount I torture myself difficult. The amount I torture myself is next level. You need to have some is next level. You need to have some is next level. You need to have some kind of rage demon in your skull that kind of rage demon in your skull that kind of rage demon in your skull that drives you. I've done these things drives you. I've done these things drives you. I've done these things because I felt a strong compulsion to do because I felt a strong compulsion to do because I felt a strong compulsion to do them. I've been burning the candle at them. I've been burning the candle at them. I've been burning the candle at both ends with a flamethrower for a very both ends with a flamethrower for a very both ends with a flamethrower for a very long time. He continues to issue this long time. He continues to issue this long time. He continues to issue this warning. You think you want to be me. I warning. You think you want to be me. I warning. You think you want to be me. I guarantee you don't want to be me. You guarantee you don't want to be me. You guarantee you don't want to be me. You can't be in a constant fight for can't be in a constant fight for can't be in a constant fight for survival, always in adrenaline mode, and survival, always in adrenaline mode, and survival, always in adrenaline mode, and not have it hurt you. I would say this not have it hurt you. I would say this not have it hurt you. I would say this to 20some year old me. I think there's to 20some year old me. I think there's to 20some year old me. I think there's some merit to not being too intense and some merit to not being too intense and some merit to not being too intense and enjoying the moment a bit. Occasionally enjoying the moment a bit. Occasionally enjoying the moment a bit. Occasionally stopping to smell the roses would stopping to smell the roses would stopping to smell the roses would probably be a good idea. Elon talks a probably be a good idea. Elon talks a probably be a good idea. Elon talks a lot about fear. He talks about the fact lot about fear. He talks about the fact lot about fear. He talks about the fact that you're always going to feel fear. that you're always going to feel fear. that you're always going to feel fear. You have to do it anyways. I don't You have to do it anyways. I don't You have to do it anyways. I don't remember if it's in this book or another remember if it's in this book or another remember if it's in this book or another book, but one of my favorite quotes from book, but one of my favorite quotes from book, but one of my favorite quotes from Elon about this. He says, "Don't fear Elon about this. He says, "Don't fear Elon about this. He says, "Don't fear losing. It hurts the first 50 times, but losing. It hurts the first 50 times, but losing. It hurts the first 50 times, but then you're able to play with less then you're able to play with less then you're able to play with less emotion. You will be able to take more emotion. You will be able to take more emotion. You will be able to take more risks." In this book, he says, "Look risks." In this book, he says, "Look risks." In this book, he says, "Look fear straight in the eye and it will fear straight in the eye and it will fear straight in the eye and it will disappear." The nature of fear is that disappear." The nature of fear is that disappear." The nature of fear is that people don't look at it. Look at it people don't look at it. Look at it people don't look at it. Look at it directly and it will be gone. When directly and it will be gone. When directly and it will be gone. When something is important enough to you and something is important enough to you and something is important enough to you and you believe in it enough, you do it in you believe in it enough, you do it in you believe in it enough, you do it in spite of the fear. It is normal to feel spite of the fear. It is normal to feel spite of the fear. It is normal to feel fear. If you don't feel fear, you fear. If you don't feel fear, you fear. If you don't feel fear, you definitely have something mentally definitely have something mentally definitely have something mentally wrong. Just feel it and let the wrong. Just feel it and let the wrong. Just feel it and let the importance of your mission drive you to importance of your mission drive you to importance of your mission drive you to do it anyway. And he was asked the do it anyway. And he was asked the do it anyway. And he was asked the follow-up question. How do you persevere follow-up question. How do you persevere follow-up question. How do you persevere through these hard challenges? Where do through these hard challenges? Where do through these hard challenges? Where do you find the strength? And I loved his you find the strength? And I loved his you find the strength? And I loved his answer. That's not how I think. I think answer. That's not how I think. I think answer. That's not how I think. I think this is simply something important. It this is simply something important. It this is simply something important. It must get done. We will keep doing it or must get done. We will keep doing it or must get done. We will keep doing it or we will die trying. Quitting is not in we will die trying. Quitting is not in we will die trying. Quitting is not in my nature. I don't care about optimism my nature. I don't care about optimism my nature. I don't care about optimism or pessimism. [ __ ] that. We're going to or pessimism. [ __ ] that. We're going to or pessimism. [ __ ] that. We're going to get it done. There's an entire section get it done. There's an entire section get it done. There's an entire section on how Elon thinks like a physicist and on how Elon thinks like a physicist and on how Elon thinks like a physicist and he uses this to get to the truth. He he uses this to get to the truth. He he uses this to get to the truth. He repeats this a lot. The truth matters to repeats this a lot. The truth matters to repeats this a lot. The truth matters to me a lot. Pathologically, it matters to me a lot. Pathologically, it matters to me a lot. Pathologically, it matters to me. In business and personal life, me. In business and personal life, me. In business and personal life, wishful thinking causes a lot of wishful thinking causes a lot of wishful thinking causes a lot of mistakes. You have to ask whether mistakes. You have to ask whether mistakes. You have to ask whether something is true or not. Wishful something is true or not. Wishful something is true or not. Wishful thinking is a natural human tendency. It thinking is a natural human tendency. It thinking is a natural human tendency. It is a challenge to tell the difference is a challenge to tell the difference is a challenge to tell the difference between believing in a new idea and between believing in a new idea and between believing in a new idea and persevering or pursuing an unrealistic persevering or pursuing an unrealistic persevering or pursuing an unrealistic dream. The real test of any startup is dream. The real test of any startup is dream. The real test of any startup is how well it responds to adversity and how well it responds to adversity and how well it responds to adversity and adapts. When most things start out, they adapts. When most things start out, they adapts. When most things start out, they don't make much sense. But as long as don't make much sense. But as long as don't make much sense. But as long as you adapt quickly, you can make the you adapt quickly, you can make the you adapt quickly, you can make the company work. A few weeks ago, I just company work. A few weeks ago, I just company work. A few weeks ago, I just did this episode called How SpaceX did this episode called How SpaceX did this episode called How SpaceX Works. Huge chunks of that episode is Works. Huge chunks of that episode is Works. Huge chunks of that episode is about this idea. If you haven't listened about this idea. If you haven't listened about this idea. If you haven't listened to it, I'd highly recommend going back to it, I'd highly recommend going back to it, I'd highly recommend going back and listening to it after this. Being and listening to it after this. Being and listening to it after this. Being tenacious and super focused on the truth tenacious and super focused on the truth tenacious and super focused on the truth is extremely important. Look for is extremely important. Look for is extremely important. Look for feedback from all sources. If you have feedback from all sources. If you have feedback from all sources. If you have beliefs that are incompatible with a beliefs that are incompatible with a beliefs that are incompatible with a rocket getting to orbit, that rocket rocket getting to orbit, that rocket rocket getting to orbit, that rocket will not get to orbit. Physics is a will not get to orbit. Physics is a will not get to orbit. Physics is a harsh judge. He repeats over and over harsh judge. He repeats over and over harsh judge. He repeats over and over again. Physics is law. Everything else again. Physics is law. Everything else again. Physics is law. Everything else is a recommendation. Wishful thinking is is a recommendation. Wishful thinking is is a recommendation. Wishful thinking is innate in the human brain. You want innate in the human brain. You want innate in the human brain. You want things to be the way you wish them to things to be the way you wish them to things to be the way you wish them to be. So, you tend to filter out be. So, you tend to filter out be. So, you tend to filter out information you shouldn't. That's why I information you shouldn't. That's why I information you shouldn't. That's why I always assume we're losing even when it always assume we're losing even when it always assume we're losing even when it looks like we might win. That line's too looks like we might win. That line's too looks like we might win. That line's too good not to repeat. That's why I always good not to repeat. That's why I always good not to repeat. That's why I always assume we're losing even when it looks assume we're losing even when it looks assume we're losing even when it looks like we might win. And then he mentioned like we might win. And then he mentioned like we might win. And then he mentioned something that he's been repeating for a something that he's been repeating for a something that he's been repeating for a decade and a half. The importance of decade and a half. The importance of decade and a half. The importance of using first principles thinking the using first principles thinking the using first principles thinking the normal way we conduct our lives is normal way we conduct our lives is normal way we conduct our lives is reasoning by analogy. That means we do reasoning by analogy. That means we do reasoning by analogy. That means we do something because it's similar to something because it's similar to something because it's similar to something else or what other people are something else or what other people are something else or what other people are doing. It is easier to reason by analogy doing. It is easier to reason by analogy doing. It is easier to reason by analogy rather than from first principles. So rather than from first principles. So rather than from first principles. So that's what we do most of the time. But that's what we do most of the time. But that's what we do most of the time. But for important things, that kind of for important things, that kind of for important things, that kind of thinking is too bound by convention or thinking is too bound by convention or thinking is too bound by convention or prior experiences. You will hear it's prior experiences. You will hear it's prior experiences. You will hear it's always been done this way or no one's always been done this way or no one's always been done this way or no one's ever done it. That is a ridiculous way ever done it. That is a ridiculous way ever done it. That is a ridiculous way to think. First principles is a powerful to think. First principles is a powerful to think. First principles is a powerful powerful method for life. And before we powerful method for life. And before we powerful method for life. And before we get back into this, I want to tell you get back into this, I want to tell you get back into this, I want to tell you about the presenting sponsor of this about the presenting sponsor of this about the presenting sponsor of this podcast, RAMP. I have been reading a lot podcast, RAMP. I have been reading a lot podcast, RAMP. I have been reading a lot about SpaceX lately. SpaceX is one of about SpaceX lately. SpaceX is one of about SpaceX lately. SpaceX is one of the most valuable private businesses in the most valuable private businesses in the most valuable private businesses in the world and one of the main themes in the world and one of the main themes in the world and one of the main themes in the history of SpaceX is constantly the history of SpaceX is constantly the history of SpaceX is constantly attacking and questioning your cost. attacking and questioning your cost. attacking and questioning your cost. Ramp helps many of the most innovative Ramp helps many of the most innovative Ramp helps many of the most innovative businesses in the world do exactly that businesses in the world do exactly that businesses in the world do exactly that and ramp does this by using first and ramp does this by using first and ramp does this by using first principles thinking. The median company principles thinking. The median company principles thinking. The median company that is running on ramp cuts their that is running on ramp cuts their that is running on ramp cuts their expenses by 5%. And one thing SpaceX has expenses by 5%. And one thing SpaceX has expenses by 5%. And one thing SpaceX has demonstrated is a religious dedication demonstrated is a religious dedication demonstrated is a religious dedication to controlling costs actually helps to controlling costs actually helps to controlling costs actually helps increase revenue because you can pursue increase revenue because you can pursue increase revenue because you can pursue opportunities you couldn't otherwise. opportunities you couldn't otherwise. opportunities you couldn't otherwise. And we see that in the ramp data too. And we see that in the ramp data too. And we see that in the ramp data too. The median company running on ramp also The median company running on ramp also The median company running on ramp also grows their revenue by 16%. So when grows their revenue by 16%. So when grows their revenue by 16%. So when you're running your business on ramp and you're running your business on ramp and you're running your business on ramp and your competitors are not, you have a your competitors are not, you have a your competitors are not, you have a massive competitive advantage that massive competitive advantage that massive competitive advantage that compounds over time. Ramp is the only compounds over time. Ramp is the only compounds over time. Ramp is the only platform designed to make your finance platform designed to make your finance platform designed to make your finance team faster and happier. Many of the top team faster and happier. Many of the top team faster and happier. Many of the top founders and CEOs that I know run their founders and CEOs that I know run their founders and CEOs that I know run their business on RAMP. I run my business on business on RAMP. I run my business on business on RAMP. I run my business on Ramp and you should too. Go to ramp.com Ramp and you should too. Go to ramp.com Ramp and you should too. Go to ramp.com today to learn how they can help your today to learn how they can help your today to learn how they can help your business save time, save money, and grow business save time, save money, and grow business save time, save money, and grow revenue. That is ramp.com. And so he's revenue. That is ramp.com. And so he's revenue. That is ramp.com. And so he's asked the followup. How do you apply asked the followup. How do you apply asked the followup. How do you apply first principles thinking? Break first principles thinking? Break first principles thinking? Break something down to the most fundamental something down to the most fundamental something down to the most fundamental principles. Start by asking what are you principles. Start by asking what are you principles. Start by asking what are you most confident is true at a foundational most confident is true at a foundational most confident is true at a foundational level. That sets your axiomatic base. level. That sets your axiomatic base. level. That sets your axiomatic base. Then you reason up from there. Then you Then you reason up from there. Then you Then you reason up from there. Then you check your conclusions against the check your conclusions against the check your conclusions against the axiomatic truths. It's hard to think axiomatic truths. It's hard to think axiomatic truths. It's hard to think this way. It takes a lot of effort, but this way. It takes a lot of effort, but this way. It takes a lot of effort, but if you're trying to do something new, if you're trying to do something new, if you're trying to do something new, it's the best way to think. And so then it's the best way to think. And so then it's the best way to think. And so then he gives an example of how he applied he gives an example of how he applied he gives an example of how he applied first principal thinkings to one of his first principal thinkings to one of his first principal thinkings to one of his companies. He says, here's an example companies. He says, here's an example companies. He says, here's an example from early in building Tesla. People from early in building Tesla. People from early in building Tesla. People said battery packs were too expensive to said battery packs were too expensive to said battery packs were too expensive to make cheap electric cars. They assumed make cheap electric cars. They assumed make cheap electric cars. They assumed they would always be expensive because they would always be expensive because they would always be expensive because they had been in the past. That is they had been in the past. That is they had been in the past. That is pretty dumb. If you applied that pretty dumb. If you applied that pretty dumb. If you applied that reasoning to everything new, then you reasoning to everything new, then you reasoning to everything new, then you would never try anything new. Oh, nobody would never try anything new. Oh, nobody would never try anything new. Oh, nobody wants a car. Horses are great. We're wants a car. Horses are great. We're wants a car. Horses are great. We're used to them. They can eat grass. used to them. They can eat grass. used to them. They can eat grass. There's lots of grass all over the There's lots of grass all over the There's lots of grass all over the place. There's no gasoline available, so place. There's no gasoline available, so place. There's no gasoline available, so people will never buy gas cars. People people will never buy gas cars. People people will never buy gas cars. People did say that, and they said it a lot. did say that, and they said it a lot. did say that, and they said it a lot. People assumed batteries for electric People assumed batteries for electric People assumed batteries for electric vehicles would always cost $600 per vehicles would always cost $600 per vehicles would always cost $600 per kilowatt hour. The first principal's kilowatt hour. The first principal's kilowatt hour. The first principal's approach to battery costs is this. What approach to battery costs is this. What approach to battery costs is this. What are the batteries made of? What are the are the batteries made of? What are the are the batteries made of? What are the materials that made up of batteries? materials that made up of batteries? materials that made up of batteries? What is the market value of those What is the market value of those What is the market value of those materials? It's got cobalt, nickel, materials? It's got cobalt, nickel, materials? It's got cobalt, nickel, aluminum, carbon, some polymers for aluminum, carbon, some polymers for aluminum, carbon, some polymers for separation, and steel can. Okay, what if separation, and steel can. Okay, what if separation, and steel can. Okay, what if we bought that amount of material on the we bought that amount of material on the we bought that amount of material on the London Metal Exchange? What would each London Metal Exchange? What would each London Metal Exchange? What would each of those things cost? Oh, gez, it's only of those things cost? Oh, gez, it's only of those things cost? Oh, gez, it's only $80 per kilowatt hour. So, clearly, we $80 per kilowatt hour. So, clearly, we $80 per kilowatt hour. So, clearly, we just need to think of clever ways to just need to think of clever ways to just need to think of clever ways to take those materials and combine them take those materials and combine them take those materials and combine them into the shape of a battery cell. That's into the shape of a battery cell. That's into the shape of a battery cell. That's how I knew it was possible to build how I knew it was possible to build how I knew it was possible to build batteries much cheaper than anyone else batteries much cheaper than anyone else batteries much cheaper than anyone else realized. And then he's just got a great realized. And then he's just got a great realized. And then he's just got a great quote about the importance of taking quote about the importance of taking quote about the importance of taking ideas from different domains and ideas from different domains and ideas from different domains and applying it to whatever you're working applying it to whatever you're working applying it to whatever you're working on. He says, 'What is simple in one on. He says, 'What is simple in one on. He says, 'What is simple in one arena is often profound in another. arena is often profound in another. arena is often profound in another. First principles thinking built SpaceX. First principles thinking built SpaceX. First principles thinking built SpaceX. Most people think historically all Most people think historically all Most people think historically all rockets have been expensive. Therefore, rockets have been expensive. Therefore, rockets have been expensive. Therefore, in the future, all rockets will be in the future, all rockets will be in the future, all rockets will be expensive. But that is not true. The expensive. But that is not true. The expensive. But that is not true. The first principles thought process around first principles thought process around first principles thought process around the rocket became general purpose for the rocket became general purpose for the rocket became general purpose for all parts. I love this idea. I call this all parts. I love this idea. I call this all parts. I love this idea. I call this the idiot index. How much more does a the idiot index. How much more does a the idiot index. How much more does a finished product cost than the cost of finished product cost than the cost of finished product cost than the cost of its materials? If a part or product had its materials? If a part or product had its materials? If a part or product had a high idiot index, we could cut the a high idiot index, we could cut the a high idiot index, we could cut the cost with more efficient manufacturing cost with more efficient manufacturing cost with more efficient manufacturing techniques. If the ratio is high, you're techniques. If the ratio is high, you're techniques. If the ratio is high, you're an idiot. I expect all of my engineers an idiot. I expect all of my engineers an idiot. I expect all of my engineers to know all the best and worst parts in to know all the best and worst parts in to know all the best and worst parts in their systems as judged by the idiot their systems as judged by the idiot their systems as judged by the idiot index at all times. That's what I mean index at all times. That's what I mean index at all times. That's what I mean by thinking about things from a first by thinking about things from a first by thinking about things from a first principal standpoint. If I had analyzed principal standpoint. If I had analyzed principal standpoint. If I had analyzed it by analogy and said, "What are all it by analogy and said, "What are all it by analogy and said, "What are all the other rocket companies doing? What the other rocket companies doing? What the other rocket companies doing? What do their rockets cost? What historically do their rockets cost? What historically do their rockets cost? What historically have other rockets cost? That is have other rockets cost? That is have other rockets cost? That is reasoning by analogy, but it really reasoning by analogy, but it really reasoning by analogy, but it really doesn't illustrate what the true doesn't illustrate what the true doesn't illustrate what the true potential is. potential is. potential is. And then there's a great idea in the And then there's a great idea in the And then there's a great idea in the book that I haven't heard him speak book that I haven't heard him speak book that I haven't heard him speak about much, but I think should be about much, but I think should be about much, but I think should be repeated over and over again. It's this repeated over and over again. It's this repeated over and over again. It's this idea of starting with what does the idea of starting with what does the idea of starting with what does the theoretically perfect product look like? theoretically perfect product look like? theoretically perfect product look like? Start from there, work backwards. The Start from there, work backwards. The Start from there, work backwards. The idea of the theoretically perfect is idea of the theoretically perfect is idea of the theoretically perfect is going to be a moving target because as going to be a moving target because as going to be a moving target because as you learn more, the definition for that you learn more, the definition for that you learn more, the definition for that perfect product will change. You don't perfect product will change. You don't perfect product will change. You don't actually know what the perfect product actually know what the perfect product actually know what the perfect product is, but you can approximate a more is, but you can approximate a more is, but you can approximate a more perfect product. Then asked, "What perfect product. Then asked, "What perfect product. Then asked, "What tools, methods, or materials do we need tools, methods, or materials do we need tools, methods, or materials do we need to create to get the atoms in that to create to get the atoms in that to create to get the atoms in that shape?" People rarely think this way, shape?" People rarely think this way, shape?" People rarely think this way, but thinking in limits is a powerful but thinking in limits is a powerful but thinking in limits is a powerful tool. At SpaceX, we often consider tool. At SpaceX, we often consider tool. At SpaceX, we often consider what's possible within the absurd. If my what's possible within the absurd. If my what's possible within the absurd. If my team says something is impossible, I try team says something is impossible, I try team says something is impossible, I try to open their minds to new potential to open their minds to new potential to open their minds to new potential solutions by asking, "What would it solutions by asking, "What would it solutions by asking, "What would it take?" And then he talks about the fact take?" And then he talks about the fact take?" And then he talks about the fact that most people don't do this because that most people don't do this because that most people don't do this because they have these fake ceilings, these they have these fake ceilings, these they have these fake ceilings, these fake limits on themselves. Most people fake limits on themselves. Most people fake limits on themselves. Most people can learn a lot more than they think can learn a lot more than they think can learn a lot more than they think they can. They sell themselves short by they can. They sell themselves short by they can. They sell themselves short by not trying. I encourage you to read a not trying. I encourage you to read a not trying. I encourage you to read a lot of books. Just read. Read books. Try lot of books. Just read. Read books. Try lot of books. Just read. Read books. Try to ingest as much information as you to ingest as much information as you to ingest as much information as you can. I was always really interested in can. I was always really interested in can. I was always really interested in reading. When I was a kid, I read reading. When I was a kid, I read reading. When I was a kid, I read everything I could get my hands on. I everything I could get my hands on. I everything I could get my hands on. I ran out of things to read in our house, ran out of things to read in our house, ran out of things to read in our house, so I read the encyclopedia. Develop good so I read the encyclopedia. Develop good so I read the encyclopedia. Develop good general knowledge. Read a broad range of general knowledge. Read a broad range of general knowledge. Read a broad range of material. And then he talks about this material. And then he talks about this material. And then he talks about this habit that he developed when he was a habit that he developed when he was a habit that he developed when he was a kid that he could teach himself things kid that he could teach himself things kid that he could teach himself things that he used it to build his companies. that he used it to build his companies. that he used it to build his companies. Diving into SpaceX and Tesla, I had to Diving into SpaceX and Tesla, I had to Diving into SpaceX and Tesla, I had to learn how to make hardware. I had never learn how to make hardware. I had never learn how to make hardware. I had never seen a CNC machine or laid out carbon seen a CNC machine or laid out carbon seen a CNC machine or laid out carbon fiber. I didn't know about any of these fiber. I didn't know about any of these fiber. I didn't know about any of these things. But if you read books and talk things. But if you read books and talk things. But if you read books and talk to experts, you can pick them up to experts, you can pick them up to experts, you can pick them up quickly. Most people self-limit their quickly. Most people self-limit their quickly. Most people self-limit their ability to learn. It's pretty ability to learn. It's pretty ability to learn. It's pretty straightforward. Just read books and straightforward. Just read books and straightforward. Just read books and talk to people. And so then Elon talks talk to people. And so then Elon talks talk to people. And so then Elon talks about the fact that he thinks of himself about the fact that he thinks of himself about the fact that he thinks of himself primarily as an engineer. And this is primarily as an engineer. And this is primarily as an engineer. And this is why engineering is magic. And who why engineering is magic. And who why engineering is magic. And who wouldn't want to be a magician? When I wouldn't want to be a magician? When I wouldn't want to be a magician? When I was young, I wasn't sure what I was was young, I wasn't sure what I was was young, I wasn't sure what I was going to do when I got older. I thought going to do when I got older. I thought going to do when I got older. I thought the idea of inventing things would be the idea of inventing things would be the idea of inventing things would be cool because I read a quote from Arthur cool because I read a quote from Arthur cool because I read a quote from Arthur C. Clark that said, "A sufficiently C. Clark that said, "A sufficiently C. Clark that said, "A sufficiently advanced technology is indistinguishable advanced technology is indistinguishable advanced technology is indistinguishable from magic." That is really true. If you from magic." That is really true. If you from magic." That is really true. If you go back 300 years, you'd be burned at go back 300 years, you'd be burned at go back 300 years, you'd be burned at the stake for things we take for granted the stake for things we take for granted the stake for things we take for granted today. Being able to fly is crazy. Being today. Being able to fly is crazy. Being today. Being able to fly is crazy. Being able to see over long distances, able to see over long distances, able to see over long distances, communicate, and instantly access the communicate, and instantly access the communicate, and instantly access the world's information from anywhere on world's information from anywhere on world's information from anywhere on Earth, that is also crazy. This would Earth, that is also crazy. This would Earth, that is also crazy. This would all be considered magic in times past. all be considered magic in times past. all be considered magic in times past. Engineering is about creating things Engineering is about creating things Engineering is about creating things that never existed before. And then Elon that never existed before. And then Elon that never existed before. And then Elon talks about his love of military talks about his love of military talks about his love of military history. He says, "Engineering wins history. He says, "Engineering wins history. He says, "Engineering wins wars." In Sunzu's Art of War, there wars." In Sunzu's Art of War, there wars." In Sunzu's Art of War, there should have been a chapter saying, "If should have been a chapter saying, "If should have been a chapter saying, "If you have a decisive technology you have a decisive technology you have a decisive technology advantage, you can win with minimal advantage, you can win with minimal advantage, you can win with minimal casualties to your side. If there's a casualties to your side. If there's a casualties to your side. If there's a big difference in the technologies, the big difference in the technologies, the big difference in the technologies, the side with the advanced technology will side with the advanced technology will side with the advanced technology will win. If there's an overwhelming win. If there's an overwhelming win. If there's an overwhelming technological advantage, that side will technological advantage, that side will technological advantage, that side will win, even if the odds are dramatically win, even if the odds are dramatically win, even if the odds are dramatically stacked against them. To use an extreme stacked against them. To use an extreme stacked against them. To use an extreme example, if you can shoot lasers from example, if you can shoot lasers from example, if you can shoot lasers from space to any spot on the ground by just space to any spot on the ground by just space to any spot on the ground by just pointing at it, it wouldn't have pointing at it, it wouldn't have pointing at it, it wouldn't have mattered if you're fighting Julius mattered if you're fighting Julius mattered if you're fighting Julius Caesar or Napoleon. They just got Caesar or Napoleon. They just got Caesar or Napoleon. They just got lasered from space. Most battles in lasered from space. Most battles in lasered from space. Most battles in history, because technology moves history, because technology moves history, because technology moves slowly, were more about maneuvering, slowly, were more about maneuvering, slowly, were more about maneuvering, tactics, and strategy. But when there's tactics, and strategy. But when there's tactics, and strategy. But when there's a technology discontinuity, it a technology discontinuity, it a technology discontinuity, it fundamentally changes the whole fundamentally changes the whole fundamentally changes the whole situation. Wars in the modern era are situation. Wars in the modern era are situation. Wars in the modern era are very much technology race wars. How fast very much technology race wars. How fast very much technology race wars. How fast can we create new technology? The best can we create new technology? The best can we create new technology? The best example would be the nuclear bomb. example would be the nuclear bomb. example would be the nuclear bomb. Anyone who got nuclear bombs first won Anyone who got nuclear bombs first won Anyone who got nuclear bombs first won that's it. End of story. And so then he that's it. End of story. And so then he that's it. End of story. And so then he goes back to why engineering is so goes back to why engineering is so goes back to why engineering is so important because he says engineering important because he says engineering important because he says engineering creates value. I find ideas to be creates value. I find ideas to be creates value. I find ideas to be somewhat trivial but the execution of somewhat trivial but the execution of somewhat trivial but the execution of good ideas is extremely difficult. good ideas is extremely difficult. good ideas is extremely difficult. Prototypes are easy. Production is hard. Prototypes are easy. Production is hard. Prototypes are easy. Production is hard. production and being cash flow positive production and being cash flow positive production and being cash flow positive is excruciating pain. You only build is excruciating pain. You only build is excruciating pain. You only build value in a company if you do hard work value in a company if you do hard work value in a company if you do hard work to solve tough problems. That's why to solve tough problems. That's why to solve tough problems. That's why companies are valuable. It's why they companies are valuable. It's why they companies are valuable. It's why they should be valuable and largely why they should be valuable and largely why they should be valuable and largely why they are. And so then there's a section on are. And so then there's a section on are. And so then there's a section on doing the work and building the doing the work and building the doing the work and building the companies. If conventional thinking companies. If conventional thinking companies. If conventional thinking makes your mission impossible, then makes your mission impossible, then makes your mission impossible, then unconventional thinking is necessary. I unconventional thinking is necessary. I unconventional thinking is necessary. I am the CEO of these companies because I am the CEO of these companies because I am the CEO of these companies because I feel I'm responsible for them, not feel I'm responsible for them, not feel I'm responsible for them, not because it's the best thing for the because it's the best thing for the because it's the best thing for the quality of my life. What you actually quality of my life. What you actually quality of my life. What you actually get as CEO is a disalization of the get as CEO is a disalization of the get as CEO is a disalization of the worst things going on in the company. If worst things going on in the company. If worst things going on in the company. If you're the CEO, you work on the worst you're the CEO, you work on the worst you're the CEO, you work on the worst problems in the company. You only spend problems in the company. You only spend problems in the company. You only spend time on things which are going wrong, time on things which are going wrong, time on things which are going wrong, the things other people can't fix, the the things other people can't fix, the the things other people can't fix, the most pernitious and painful problems. most pernitious and painful problems. most pernitious and painful problems. And so he talks about, he's asked the And so he talks about, he's asked the And so he talks about, he's asked the follow-up question, how do you manage follow-up question, how do you manage follow-up question, how do you manage through failure? Managing through big through failure? Managing through big through failure? Managing through big failures is painful and difficult. It failures is painful and difficult. It failures is painful and difficult. It feels terrible. The company looks at me feels terrible. The company looks at me feels terrible. The company looks at me to rally them. So I do, but I feel to rally them. So I do, but I feel to rally them. So I do, but I feel terrible. failure is a punch in the gut. terrible. failure is a punch in the gut. terrible. failure is a punch in the gut. And then he talks about the importance And then he talks about the importance And then he talks about the importance of earning a deep understanding inside of earning a deep understanding inside of earning a deep understanding inside your own company. He says, "One reason your own company. He says, "One reason your own company. He says, "One reason SpaceX could move so quickly is that I SpaceX could move so quickly is that I SpaceX could move so quickly is that I made both the engineering decisions and made both the engineering decisions and made both the engineering decisions and the spending decisions together in one the spending decisions together in one the spending decisions together in one brain. In most companies, those are at brain. In most companies, those are at brain. In most companies, those are at least two different people. There's some least two different people. There's some least two different people. There's some engineering guy who's trying to convince engineering guy who's trying to convince engineering guy who's trying to convince a finance guy that this money should be a finance guy that this money should be a finance guy that this money should be spent, but the finance guy doesn't spent, but the finance guy doesn't spent, but the finance guy doesn't understand engineering, so he can't tell understand engineering, so he can't tell understand engineering, so he can't tell if this is a good way to spend money or if this is a good way to spend money or if this is a good way to spend money or not. Plus, they may not trust each not. Plus, they may not trust each not. Plus, they may not trust each other. I'm making the engineering and other. I'm making the engineering and other. I'm making the engineering and the spending decisions together with all the spending decisions together with all the spending decisions together with all the information in one place. My brain the information in one place. My brain the information in one place. My brain trusts itself. Another thing you'll hear trusts itself. Another thing you'll hear trusts itself. Another thing you'll hear Elon repeat over and over again is the Elon repeat over and over again is the Elon repeat over and over again is the importance of leading from the front importance of leading from the front importance of leading from the front line. Front lines leadership. When the line. Front lines leadership. When the line. Front lines leadership. When the team is being asked to work super hard, team is being asked to work super hard, team is being asked to work super hard, I have to be right there with them and I have to be right there with them and I have to be right there with them and they have to see it. If I fall asleep in they have to see it. If I fall asleep in they have to see it. If I fall asleep in the middle of the factory floor at 4 in the middle of the factory floor at 4 in the middle of the factory floor at 4 in the morning and wake up 4 hours later, the morning and wake up 4 hours later, the morning and wake up 4 hours later, they see that. They're like, "If the CEO they see that. They're like, "If the CEO they see that. They're like, "If the CEO is willing to take that level of pain, I is willing to take that level of pain, I is willing to take that level of pain, I can do it, too." can do it, too." can do it, too." The troops fight harder if they see the The troops fight harder if they see the The troops fight harder if they see the general on the front lines. Nobody general on the front lines. Nobody general on the front lines. Nobody bleeds for the prince in the palace. Get bleeds for the prince in the palace. Get bleeds for the prince in the palace. Get out there on the front line. Show them out there on the front line. Show them out there on the front line. Show them that you care and you're not in some that you care and you're not in some that you care and you're not in some plush office somewhere. If they see the plush office somewhere. If they see the plush office somewhere. If they see the general out on the battlefield, the general out on the battlefield, the general out on the battlefield, the troops are going to be motivated. troops are going to be motivated. troops are going to be motivated. Wherever Napoleon was, that's where his Wherever Napoleon was, that's where his Wherever Napoleon was, that's where his armies would be at their best. It is my armies would be at their best. It is my armies would be at their best. It is my firm belief that the separation of the firm belief that the separation of the firm belief that the separation of the workplace into executives and employees workplace into executives and employees workplace into executives and employees does not create a good working does not create a good working does not create a good working environment. We eliminate all special environment. We eliminate all special environment. We eliminate all special privileges of executives. Everyone has privileges of executives. Everyone has privileges of executives. Everyone has equal access to parking, eating at the equal access to parking, eating at the equal access to parking, eating at the same tables, and there's no management same tables, and there's no management same tables, and there's no management offices. Managers should always take offices. Managers should always take offices. Managers should always take care of their team before they take care care of their team before they take care care of their team before they take care of themselves. The supervisor is there of themselves. The supervisor is there of themselves. The supervisor is there to serve his team, not the other way to serve his team, not the other way to serve his team, not the other way around. All technical managers must have around. All technical managers must have around. All technical managers must have hands-on experience. Otherwise, they're hands-on experience. Otherwise, they're hands-on experience. Otherwise, they're like a calvary leader who can't ride a like a calvary leader who can't ride a like a calvary leader who can't ride a horse. horse. horse. Do whatever the task is, whether grand Do whatever the task is, whether grand Do whatever the task is, whether grand or humble. Then he goes back to the or humble. Then he goes back to the or humble. Then he goes back to the importance of just persevering through importance of just persevering through importance of just persevering through adversity, through pain. There's a great adversity, through pain. There's a great adversity, through pain. There's a great quote from Churchill. If you're going quote from Churchill. If you're going quote from Churchill. If you're going through hell, keep going. I seem to have through hell, keep going. I seem to have through hell, keep going. I seem to have a high innate drive, and that's been a high innate drive, and that's been a high innate drive, and that's been true even since I was a little kid. When true even since I was a little kid. When true even since I was a little kid. When I was a kid, I thought I was insane. It I was a kid, I thought I was insane. It I was a kid, I thought I was insane. It became clear other people's minds became clear other people's minds became clear other people's minds weren't exploding with ideas all the weren't exploding with ideas all the weren't exploding with ideas all the time. I felt strange. It's hard to turn time. I felt strange. It's hard to turn time. I felt strange. It's hard to turn off. It is like a neverending explosion. off. It is like a neverending explosion. off. It is like a neverending explosion. Adversity shaped me. my pain threshold Adversity shaped me. my pain threshold Adversity shaped me. my pain threshold became very high. And then he gets back became very high. And then he gets back became very high. And then he gets back into this idea. You've heard him repeat into this idea. You've heard him repeat into this idea. You've heard him repeat a few times. I've heard this quote a few times. I've heard this quote a few times. I've heard this quote attributed to different a few different attributed to different a few different attributed to different a few different founders, but it's, you know, starting founders, but it's, you know, starting founders, but it's, you know, starting companies like eating glass and staring companies like eating glass and staring companies like eating glass and staring into the abyss. He says, "When starting into the abyss. He says, "When starting into the abyss. He says, "When starting a company, usually the beginning is fun. a company, usually the beginning is fun. a company, usually the beginning is fun. Then it's hellish for a number of years. Then it's hellish for a number of years. Then it's hellish for a number of years. Starting a company is like eating glass Starting a company is like eating glass Starting a company is like eating glass and staring into the abyss. Eating glass and staring into the abyss. Eating glass and staring into the abyss. Eating glass means you've got to work on the problems means you've got to work on the problems means you've got to work on the problems the company needs you to work on, not the company needs you to work on, not the company needs you to work on, not the problems you want to work on. You the problems you want to work on. You the problems you want to work on. You end up working on problems you wish you end up working on problems you wish you end up working on problems you wish you weren't working on. But if you don't eat weren't working on. But if you don't eat weren't working on. But if you don't eat the glass, you're not going to be the glass, you're not going to be the glass, you're not going to be successful. And then we see he repeats successful. And then we see he repeats successful. And then we see he repeats this again. But if something is this again. But if something is this again. But if something is important enough, then you do it even important enough, then you do it even important enough, then you do it even though the risk of failure is high. My though the risk of failure is high. My though the risk of failure is high. My advice for somebody who wants to start a advice for somebody who wants to start a advice for somebody who wants to start a company, bear in mind that the most company, bear in mind that the most company, bear in mind that the most likely outcome is failure. Reconcile likely outcome is failure. Reconcile likely outcome is failure. Reconcile yourself to that strong possibility. And yourself to that strong possibility. And yourself to that strong possibility. And only if you still feel compelled to do only if you still feel compelled to do only if you still feel compelled to do it, then you do it. That said, many it, then you do it. That said, many it, then you do it. That said, many people fear starting a company too much. people fear starting a company too much. people fear starting a company too much. What is the worst that could happen? What is the worst that could happen? What is the worst that could happen? You're not going to starve to death. You're not going to starve to death. You're not going to starve to death. you're not going to die of exposure. you're not going to die of exposure. you're not going to die of exposure. Really, what is the worst that could Really, what is the worst that could Really, what is the worst that could happen? And then Elon has a bunch of happen? And then Elon has a bunch of happen? And then Elon has a bunch of interesting ways to think about what a interesting ways to think about what a interesting ways to think about what a company actually is. He does start with company actually is. He does start with company actually is. He does start with the the main premise, the most important the the main premise, the most important the the main premise, the most important thing, which almost all of history's thing, which almost all of history's thing, which almost all of history's greatest entrepreneurs would agree with. greatest entrepreneurs would agree with. greatest entrepreneurs would agree with. The most important thing is to attract The most important thing is to attract The most important thing is to attract great people. You have to find an great people. You have to find an great people. You have to find an amazing group that you really respect. A amazing group that you really respect. A amazing group that you really respect. A company is just a bunch of people coming company is just a bunch of people coming company is just a bunch of people coming together to create a product or service. together to create a product or service. together to create a product or service. There's no such thing as a business. There's no such thing as a business. There's no such thing as a business. That's just a group pursuing a goal. That's just a group pursuing a goal. That's just a group pursuing a goal. Depending upon how talented and Depending upon how talented and Depending upon how talented and hardworking that group is and to the hardworking that group is and to the hardworking that group is and to the degree in which they are focused degree in which they are focused degree in which they are focused cohesively in a good direction that will cohesively in a good direction that will cohesively in a good direction that will determine the success of the company. determine the success of the company. determine the success of the company. The most important thing is to attract The most important thing is to attract The most important thing is to attract great people. A company is essentially a great people. A company is essentially a great people. A company is essentially a cybernetic collective of people and cybernetic collective of people and cybernetic collective of people and machines. This collective is far smarter machines. This collective is far smarter machines. This collective is far smarter than an individual. People sometimes than an individual. People sometimes than an individual. People sometimes forget a company is just a group of forget a company is just a group of forget a company is just a group of people gathered together to make people gathered together to make people gathered together to make products for fellow human beings. As products for fellow human beings. As products for fellow human beings. As long as they make great products, the long as they make great products, the long as they make great products, the company will have great value. company will have great value. company will have great value. If you don't have a compelling product If you don't have a compelling product If you don't have a compelling product at a compelling price, you don't have a at a compelling price, you don't have a at a compelling price, you don't have a great company. And then he talks about great company. And then he talks about great company. And then he talks about the importance of building a culture the importance of building a culture the importance of building a culture inside of your company of just builders, inside of your company of just builders, inside of your company of just builders, people actually doing the work. Another people actually doing the work. Another people actually doing the work. Another important principle, you want everybody important principle, you want everybody important principle, you want everybody to be able to think like the chief to be able to think like the chief to be able to think like the chief engineer. They need to understand the engineer. They need to understand the engineer. They need to understand the system at a high level well enough to system at a high level well enough to system at a high level well enough to know when they are making a bad know when they are making a bad know when they are making a bad optimization. If you're able to get optimization. If you're able to get optimization. If you're able to get talented, hardworking people to join the talented, hardworking people to join the talented, hardworking people to join the company, work together, and have a company, work together, and have a company, work together, and have a relentless sense of perfection towards a relentless sense of perfection towards a relentless sense of perfection towards a common goal, you will end up with a common goal, you will end up with a common goal, you will end up with a great product. If you have a great great product. If you have a great great product. If you have a great product, lots of people will buy it and product, lots of people will buy it and product, lots of people will buy it and the company will be successful. That is the company will be successful. That is the company will be successful. That is why our most important consideration is why our most important consideration is why our most important consideration is recruiting the best people. The output recruiting the best people. The output recruiting the best people. The output of any company is the vector sum of the of any company is the vector sum of the of any company is the vector sum of the people within it. If we attract the most people within it. If we attract the most people within it. If we attract the most talented people over time and our talented people over time and our talented people over time and our direction is correctly aligned, we will direction is correctly aligned, we will direction is correctly aligned, we will prevail. And then this is just a great prevail. And then this is just a great prevail. And then this is just a great line. A small group of technically line. A small group of technically line. A small group of technically strong people will always beat a large strong people will always beat a large strong people will always beat a large group of moderately strong people. Do group of moderately strong people. Do group of moderately strong people. Do everything you can to gather great everything you can to gather great everything you can to gather great people. And then he talks about just how people. And then he talks about just how people. And then he talks about just how difficult that actually is. It's easy to difficult that actually is. It's easy to difficult that actually is. It's easy to say. It's really difficult to do. And he say. It's really difficult to do. And he say. It's really difficult to do. And he gives some historical examples about, gives some historical examples about, gives some historical examples about, hey, this guy was really talented. We hey, this guy was really talented. We hey, this guy was really talented. We might have not have hired him if he might have not have hired him if he might have not have hired him if he applied. I love this. He goes, applied. I love this. He goes, applied. I love this. He goes, "Sometimes these things get messed up in "Sometimes these things get messed up in "Sometimes these things get messed up in recruiting." I sometimes wonder if recruiting." I sometimes wonder if recruiting." I sometimes wonder if Nicola Tesla applied to Tesla, would we Nicola Tesla applied to Tesla, would we Nicola Tesla applied to Tesla, would we have even given him an interview? That have even given him an interview? That have even given him an interview? That is not clear. They might say, "This guy is not clear. They might say, "This guy is not clear. They might say, "This guy came from weird some weird college in came from weird some weird college in came from weird some weird college in Eastern Europe. He's got some odd Eastern Europe. He's got some odd Eastern Europe. He's got some odd manorisms. We don't know if we should manorisms. We don't know if we should manorisms. We don't know if we should give him an interview." I worry that's give him an interview." I worry that's give him an interview." I worry that's what we would do. Our response should what we would do. Our response should what we would do. Our response should be, "Man, Nicola Tesla, this kid is be, "Man, Nicola Tesla, this kid is be, "Man, Nicola Tesla, this kid is super smart. What does he want? We'll super smart. What does he want? We'll super smart. What does he want? We'll pay him anything." And then he just has pay him anything." And then he just has pay him anything." And then he just has a great sentence here to figure out the a great sentence here to figure out the a great sentence here to figure out the kind of people you actually want to kind of people you actually want to kind of people you actually want to hire. Think about if that person was hire. Think about if that person was hire. Think about if that person was working on that mission of the company working on that mission of the company working on that mission of the company before they applied for the company. He before they applied for the company. He before they applied for the company. He says, "Usually the person who had to says, "Usually the person who had to says, "Usually the person who had to struggle with the problem really struggle with the problem really struggle with the problem really understands it." It's really important understands it." It's really important understands it." It's really important for me to tell you this goes on for for me to tell you this goes on for for me to tell you this goes on for pages after pages after pages about how pages after pages after pages about how pages after pages after pages about how important it is. He talks about like important it is. He talks about like important it is. He talks about like trying to essentially recruit as if your trying to essentially recruit as if your trying to essentially recruit as if your your company was like the special your company was like the special your company was like the special forces. He says, "Whatever, and this is forces. He says, "Whatever, and this is forces. He says, "Whatever, and this is why, wherever the smartest, most driven why, wherever the smartest, most driven why, wherever the smartest, most driven people are choosing to work, that people are choosing to work, that people are choosing to work, that company is going to win." He's asked a company is going to win." He's asked a company is going to win." He's asked a follow-up. Is building great teams and follow-up. Is building great teams and follow-up. Is building great teams and products just a question of being products just a question of being products just a question of being wellunded? And I love Elon's response wellunded? And I love Elon's response wellunded? And I love Elon's response here. If there was a factory producing here. If there was a factory producing here. If there was a factory producing excellent engineers, that would be true. excellent engineers, that would be true. excellent engineers, that would be true. Except this factory doesn't exist. It is Except this factory doesn't exist. It is Except this factory doesn't exist. It is incredibly difficult to find the right incredibly difficult to find the right incredibly difficult to find the right talent, integrate them into an talent, integrate them into an talent, integrate them into an organization, and have it work organization, and have it work organization, and have it work effectively. Money is not the effectively. Money is not the effectively. Money is not the constraint. There is only a small number constraint. There is only a small number constraint. There is only a small number of excellent people, and they are hard of excellent people, and they are hard of excellent people, and they are hard to find. And then he's got two pieces of to find. And then he's got two pieces of to find. And then he's got two pieces of advice on hiring. You look at the advice on hiring. You look at the advice on hiring. You look at the character of the people they choose to character of the people they choose to character of the people they choose to spend their time with and then optimize spend their time with and then optimize spend their time with and then optimize for attitude over skills. So he says, for attitude over skills. So he says, for attitude over skills. So he says, "One test for assessing someone's "One test for assessing someone's "One test for assessing someone's character is to look at the character of character is to look at the character of character is to look at the character of their friends and associates. While their friends and associates. While their friends and associates. While people can put a mask themselves for people can put a mask themselves for people can put a mask themselves for their character, their friends and their character, their friends and their character, their friends and associates will not. You can judge a associates will not. You can judge a associates will not. You can judge a person's character by their associates." person's character by their associates." person's character by their associates." That's the first one. This is the second That's the first one. This is the second That's the first one. This is the second one. When hiring, look for people with one. When hiring, look for people with one. When hiring, look for people with the right attitude. Skills can be the right attitude. Skills can be the right attitude. Skills can be taught. Attitude changes require a brain taught. Attitude changes require a brain taught. Attitude changes require a brain transplant. And then he goes back to the transplant. And then he goes back to the transplant. And then he goes back to the importance of finding the truth. This importance of finding the truth. This importance of finding the truth. This section is called feedback over section is called feedback over section is called feedback over feelings. Physics does not care about feelings. Physics does not care about feelings. Physics does not care about hurt feelings. It cares about whether hurt feelings. It cares about whether hurt feelings. It cares about whether you got the rocket right. All bad news you got the rocket right. All bad news you got the rocket right. All bad news should be given loudly and often. Good should be given loudly and often. Good should be given loudly and often. Good news can be said quietly and once. It is news can be said quietly and once. It is news can be said quietly and once. It is not your job to make people on your team not your job to make people on your team not your job to make people on your team love you. In fact, that's love you. In fact, that's love you. In fact, that's counterproductive. Camaraderie is counterproductive. Camaraderie is counterproductive. Camaraderie is dangerous. It makes it hard for people dangerous. It makes it hard for people dangerous. It makes it hard for people to challenge each other's work. Wanting to challenge each other's work. Wanting to challenge each other's work. Wanting to be everyone's friend leads you to to be everyone's friend leads you to to be everyone's friend leads you to care too much about the emotions of the care too much about the emotions of the care too much about the emotions of the individual in front of you rather than individual in front of you rather than individual in front of you rather than caring about the success of the whole caring about the success of the whole caring about the success of the whole enterprise. Focusing on that one enterprise. Focusing on that one enterprise. Focusing on that one individual can lead to a far greater individual can lead to a far greater individual can lead to a far greater number of people being hurt. I think it number of people being hurt. I think it number of people being hurt. I think it is a real weakness to want to be liked. is a real weakness to want to be liked. is a real weakness to want to be liked. A real weakness and I do not have that. A real weakness and I do not have that. A real weakness and I do not have that. And then he goes into designing the And then he goes into designing the And then he goes into designing the organization that you have to remove organization that you have to remove organization that you have to remove these organizational boundaries. This is these organizational boundaries. This is these organizational boundaries. This is something he repeats over and over something he repeats over and over something he repeats over and over again. He does in every one of his again. He does in every one of his again. He does in every one of his companies. In any product, you can see companies. In any product, you can see companies. In any product, you can see the errors in the organization the errors in the organization the errors in the organization structure. They will manifest themselves structure. They will manifest themselves structure. They will manifest themselves in the product. A major source of issues in the product. A major source of issues in the product. A major source of issues is poor communication between is poor communication between is poor communication between departments. The way to solve this is to departments. The way to solve this is to departments. The way to solve this is to allow free flow of information between allow free flow of information between allow free flow of information between all levels. Communication should travel all levels. Communication should travel all levels. Communication should travel via the shortest path necessary to get via the shortest path necessary to get via the shortest path necessary to get the job done, not through the chain of the job done, not through the chain of the job done, not through the chain of command. Any manager who attempts to command. Any manager who attempts to command. Any manager who attempts to enforce a chain of command will soon enforce a chain of command will soon enforce a chain of command will soon find themselves working elsewhere. find themselves working elsewhere. find themselves working elsewhere. Connect designers and manufacturers to Connect designers and manufacturers to Connect designers and manufacturers to make sure they communicate often. The make sure they communicate often. The make sure they communicate often. The people on the assembly line should be people on the assembly line should be people on the assembly line should be able to immediately grab a designer and able to immediately grab a designer and able to immediately grab a designer and engineer and say, "Why did you make it engineer and say, "Why did you make it engineer and say, "Why did you make it this way?" And he says, "Why this is this way?" And he says, "Why this is this way?" And he says, "Why this is important." If your hand is on the stove important." If your hand is on the stove important." If your hand is on the stove and it gets hot, you pull it right off. and it gets hot, you pull it right off. and it gets hot, you pull it right off. But if it's someone else's hand on the But if it's someone else's hand on the But if it's someone else's hand on the stove, it'll take you longer to do stove, it'll take you longer to do stove, it'll take you longer to do something about it. You cannot separate something about it. You cannot separate something about it. You cannot separate design, engineering, and manufacturing. design, engineering, and manufacturing. design, engineering, and manufacturing. They need to be together because you're They need to be together because you're They need to be together because you're going to make mistakes. You want to going to make mistakes. You want to going to make mistakes. You want to identify and fix those mistakes today, identify and fix those mistakes today, identify and fix those mistakes today, right now. And if you separate them, the right now. And if you separate them, the right now. And if you separate them, the mistakes will fester. And then this is mistakes will fester. And then this is mistakes will fester. And then this is great advice. physically go to where the great advice. physically go to where the great advice. physically go to where the problem is immediately. One of my rules problem is immediately. One of my rules problem is immediately. One of my rules is go as close to the source as is go as close to the source as is go as close to the source as possible. And then he enforces this idea possible. And then he enforces this idea possible. And then he enforces this idea of simple communication. Do not use of simple communication. Do not use of simple communication. Do not use acronyms or nonsense words. Anything acronyms or nonsense words. Anything acronyms or nonsense words. Anything that requires an explanation inhibits that requires an explanation inhibits that requires an explanation inhibits communication. We don't want people to communication. We don't want people to communication. We don't want people to have to memorize a glossery just to have to memorize a glossery just to have to memorize a glossery just to function. I noticed a creeping tendency function. I noticed a creeping tendency function. I noticed a creeping tendency to use madeup acronyms. Excessive use of to use madeup acronyms. Excessive use of to use madeup acronyms. Excessive use of madeup acronyms is a significant madeup acronyms is a significant madeup acronyms is a significant impediment to communication and keeping impediment to communication and keeping impediment to communication and keeping communication clear as we grow is communication clear as we grow is communication clear as we grow is incredibly important. A few acronyms incredibly important. A few acronyms incredibly important. A few acronyms here and there may not seem so bad, but here and there may not seem so bad, but here and there may not seem so bad, but if a thousand people are making these up if a thousand people are making these up if a thousand people are making these up over time, the result will be a huge over time, the result will be a huge over time, the result will be a huge glossery that we have to issue to new glossery that we have to issue to new glossery that we have to issue to new employees. employees. employees. I told people that acronyms need to stop I told people that acronyms need to stop I told people that acronyms need to stop immediately or I would take drastic immediately or I would take drastic immediately or I would take drastic action. The most simple, action. The most simple, action. The most simple, straightforward, low ego terms are straightforward, low ego terms are straightforward, low ego terms are generally best. And again, he talks a generally best. And again, he talks a generally best. And again, he talks a ton about the importance of designing ton about the importance of designing ton about the importance of designing and really engineering your and really engineering your and really engineering your organization. He has a great idea here. organization. He has a great idea here. organization. He has a great idea here. He says, you always have to look at the He says, you always have to look at the He says, you always have to look at the incentive structure of an organization incentive structure of an organization incentive structure of an organization and ask, is that organization properly and ask, is that organization properly and ask, is that organization properly incentivizing innovation? And before we incentivizing innovation? And before we incentivizing innovation? And before we get back into this and speaking of get back into this and speaking of get back into this and speaking of incentivizing for innovation, I want to incentivizing for innovation, I want to incentivizing for innovation, I want to tell you about my partner Vanta. Elon tell you about my partner Vanta. Elon tell you about my partner Vanta. Elon says that the only true currency is says that the only true currency is says that the only true currency is time. The one thing you cannot replace time. The one thing you cannot replace time. The one thing you cannot replace is time. He says, "I often tell the is time. He says, "I often tell the is time. He says, "I often tell the Tesla team, it's okay to scrap equipment Tesla team, it's okay to scrap equipment Tesla team, it's okay to scrap equipment or money. It is not okay to scrap time. or money. It is not okay to scrap time. or money. It is not okay to scrap time. Vanta helps you save time." Vanta helps Vanta helps you save time." Vanta helps Vanta helps you save time." Vanta helps your company prove you're secure so more your company prove you're secure so more your company prove you're secure so more customers will use your product or customers will use your product or customers will use your product or service. You can think of Vanta as your service. You can think of Vanta as your service. You can think of Vanta as your always AI powered security expert who always AI powered security expert who always AI powered security expert who scales with you. The more your business scales with you. The more your business scales with you. The more your business grows, the more complex your security grows, the more complex your security grows, the more complex your security needs will get and that complexity can needs will get and that complexity can needs will get and that complexity can turn into chaos. Vanta helps you tame turn into chaos. Vanta helps you tame turn into chaos. Vanta helps you tame that chaos. Vanta automates compliance, that chaos. Vanta automates compliance, that chaos. Vanta automates compliance, continuously monitors your controls, and continuously monitors your controls, and continuously monitors your controls, and gives you a single source of truth for gives you a single source of truth for gives you a single source of truth for compliance and risk. So whether you're a compliance and risk. So whether you're a compliance and risk. So whether you're a fast-rowing startup or an enterprise fast-rowing startup or an enterprise fast-rowing startup or an enterprise company, Vanta fits easily into your company, Vanta fits easily into your company, Vanta fits easily into your existing workflows. This allows you to existing workflows. This allows you to existing workflows. This allows you to keep growing a company that your keep growing a company that your keep growing a company that your customers can trust. Many companies will customers can trust. Many companies will customers can trust. Many companies will not sign contracts unless you're not sign contracts unless you're not sign contracts unless you're certified and that is causing you to certified and that is causing you to certified and that is causing you to lose out on sales. That is why the lose out on sales. That is why the lose out on sales. That is why the average Vanta customer reports a 526% average Vanta customer reports a 526% average Vanta customer reports a 526% return on investment after becoming a return on investment after becoming a return on investment after becoming a Vanta customer. Vanta will help you win Vanta customer. Vanta will help you win Vanta customer. Vanta will help you win trust, close deals, and stay secure trust, close deals, and stay secure trust, close deals, and stay secure faster and with less effort. This will faster and with less effort. This will faster and with less effort. This will save you time. Go to vanta.com/founders, save you time. Go to vanta.com/founders, save you time. Go to vanta.com/founders, and you'll get $1,000 off. That is and you'll get $1,000 off. That is and you'll get $1,000 off. That is vanta.com/founders. vanta.com/founders. vanta.com/founders. And then Elon talks about designing an And then Elon talks about designing an And then Elon talks about designing an organization that allows for a lot of organization that allows for a lot of organization that allows for a lot of experiments, one that can actually experiments, one that can actually experiments, one that can actually evolve. And he says, "It's important to evolve. And he says, "It's important to evolve. And he says, "It's important to create an environment that fosters create an environment that fosters create an environment that fosters innovation, and you want to let it innovation, and you want to let it innovation, and you want to let it evolve in a Darwinian way. You don't evolve in a Darwinian way. You don't evolve in a Darwinian way. You don't want to pick one technology or path and want to pick one technology or path and want to pick one technology or path and decide that it will win because it may decide that it will win because it may decide that it will win because it may not be the best option. You need to let not be the best option. You need to let not be the best option. You need to let things evolve. Failure is a side effect things evolve. Failure is a side effect things evolve. Failure is a side effect of iteration. I once told a discouraged of iteration. I once told a discouraged of iteration. I once told a discouraged engineer, "If you can't tell me four engineer, "If you can't tell me four engineer, "If you can't tell me four ways you [ __ ] something up before you ways you [ __ ] something up before you ways you [ __ ] something up before you got it right, you weren't the one doing got it right, you weren't the one doing got it right, you weren't the one doing the real work." If we're not the real work." If we're not the real work." If we're not occasionally blowing up an engine on the occasionally blowing up an engine on the occasionally blowing up an engine on the test stand, we're not trying hard test stand, we're not trying hard test stand, we're not trying hard enough. And so Elon has this almost enough. And so Elon has this almost enough. And so Elon has this almost religious devotion to simplicity. He religious devotion to simplicity. He religious devotion to simplicity. He says, "Simplicity wins." He says, "Never says, "Simplicity wins." He says, "Never says, "Simplicity wins." He says, "Never use a cruise missile to kill a fly. Just use a cruise missile to kill a fly. Just use a cruise missile to kill a fly. Just use a fly swatter." Every decision we use a fly swatter." Every decision we use a fly swatter." Every decision we made in early SpaceX designs had been made in early SpaceX designs had been made in early SpaceX designs had been with simplicity in mind. Simplicity both with simplicity in mind. Simplicity both with simplicity in mind. Simplicity both improves reliability and reduces cost. improves reliability and reduces cost. improves reliability and reduces cost. Fewer components means fewer components Fewer components means fewer components Fewer components means fewer components to buy and fewer components that can go to buy and fewer components that can go to buy and fewer components that can go wrong. There's a great maxim on this wrong. There's a great maxim on this wrong. There's a great maxim on this that says genius has the fewest moving that says genius has the fewest moving that says genius has the fewest moving parts. Simplicity is our mantra. It parts. Simplicity is our mantra. It parts. Simplicity is our mantra. It creates both reliability and low cost. creates both reliability and low cost. creates both reliability and low cost. Simplicity comes from hundreds of little Simplicity comes from hundreds of little Simplicity comes from hundreds of little changes. And so he gives this example of changes. And so he gives this example of changes. And so he gives this example of Tesla and the Model 3 buildup. For Tesla and the Model 3 buildup. For Tesla and the Model 3 buildup. For months, I was at the Gigafactory trying months, I was at the Gigafactory trying months, I was at the Gigafactory trying to help fix battery production. It's a to help fix battery production. It's a to help fix battery production. It's a lot of little things. I look at every lot of little things. I look at every lot of little things. I look at every tiny part of each process and ask, "Is tiny part of each process and ask, "Is tiny part of each process and ask, "Is this process necessary?" For example, a this process necessary?" For example, a this process necessary?" For example, a robot would put a car frame on a robot would put a car frame on a robot would put a car frame on a turntable. The turntable rotates, then turntable. The turntable rotates, then turntable. The turntable rotates, then another robot picks it up. The problem another robot picks it up. The problem another robot picks it up. The problem was that the turntable sometimes breaks was that the turntable sometimes breaks was that the turntable sometimes breaks down. So, we eliminated the turntable down. So, we eliminated the turntable down. So, we eliminated the turntable and just have a robottoroot handoff. and just have a robottoroot handoff. and just have a robottoroot handoff. Then we had one less step, less Then we had one less step, less Then we had one less step, less equipment, and didn't have turntable equipment, and didn't have turntable equipment, and didn't have turntable breakage to consider. It is a lot of breakage to consider. It is a lot of breakage to consider. It is a lot of this really simple stuff, but a thousand this really simple stuff, but a thousand this really simple stuff, but a thousand times. times. times. It is a lot of minimizing things that It is a lot of minimizing things that It is a lot of minimizing things that can go wrong and maximizing the can go wrong and maximizing the can go wrong and maximizing the efficiency of the simple things. You efficiency of the simple things. You efficiency of the simple things. You want fewer things, not more. I got to want fewer things, not more. I got to want fewer things, not more. I got to repeat that. You want fewer things, not repeat that. You want fewer things, not repeat that. You want fewer things, not more. And then the book goes into what more. And then the book goes into what more. And then the book goes into what Elon repeats the most, which is the Elon repeats the most, which is the Elon repeats the most, which is the algorithm. I became a broken record on algorithm. I became a broken record on algorithm. I became a broken record on the algorithm, but it's helpful to say the algorithm, but it's helpful to say the algorithm, but it's helpful to say it to an annoying degree. I have every it to an annoying degree. I have every it to an annoying degree. I have every one of my companies rigorously implement one of my companies rigorously implement one of my companies rigorously implement a five-step process for engineering. I a five-step process for engineering. I a five-step process for engineering. I call it the algorithm. The order is very call it the algorithm. The order is very call it the algorithm. The order is very important. Number one, make your important. Number one, make your important. Number one, make your requirements less dumb. Number two, try requirements less dumb. Number two, try requirements less dumb. Number two, try very hard to delete the part or process. very hard to delete the part or process. very hard to delete the part or process. Number three, simplify or optimize. Number three, simplify or optimize. Number three, simplify or optimize. Number four, accelerate. Number five, Number four, accelerate. Number five, Number four, accelerate. Number five, automate. And then he's asked the automate. And then he's asked the automate. And then he's asked the question, why is the order of the steps question, why is the order of the steps question, why is the order of the steps so important? I've personally made the so important? I've personally made the so important? I've personally made the mistake of going backwards on all five mistake of going backwards on all five mistake of going backwards on all five steps multiple times. Many things at steps multiple times. Many things at steps multiple times. Many things at Tesla were automated, accelerated, Tesla were automated, accelerated, Tesla were automated, accelerated, simplified, and then deleted. And so he simplified, and then deleted. And so he simplified, and then deleted. And so he walks us through the steps. The first walks us through the steps. The first walks us through the steps. The first step is to question your requirements step is to question your requirements step is to question your requirements and make your requirements less dumb. and make your requirements less dumb. and make your requirements less dumb. You have to start there because You have to start there because You have to start there because otherwise you could get the perfect otherwise you could get the perfect otherwise you could get the perfect answer to the wrong question. Your answer to the wrong question. Your answer to the wrong question. Your requirements are definitely dumb. It requirements are definitely dumb. It requirements are definitely dumb. It does not matter who gave them to you. does not matter who gave them to you. does not matter who gave them to you. Whatever requirements you do have must Whatever requirements you do have must Whatever requirements you do have must come from a person, not a department. come from a person, not a department. come from a person, not a department. You have to be able to ask a person and You have to be able to ask a person and You have to be able to ask a person and the person putting forth the requirement the person putting forth the requirement the person putting forth the requirement must take responsibility for that must take responsibility for that must take responsibility for that requirement. Many times we've had dumb requirement. Many times we've had dumb requirement. Many times we've had dumb requirements, dug into them, and requirements, dug into them, and requirements, dug into them, and discovered no one currently working in discovered no one currently working in discovered no one currently working in the department agrees with that the department agrees with that the department agrees with that requirement. Step two, try very hard to requirement. Step two, try very hard to requirement. Step two, try very hard to delete the part or process. It sounds delete the part or process. It sounds delete the part or process. It sounds obvious, but people often forget to try obvious, but people often forget to try obvious, but people often forget to try deleting something entirely. If you're deleting something entirely. If you're deleting something entirely. If you're not adding deleted things back in 10% of not adding deleted things back in 10% of not adding deleted things back in 10% of the time, you're not deleting enough. I the time, you're not deleting enough. I the time, you're not deleting enough. I tell them in advance, look, we're tell them in advance, look, we're tell them in advance, look, we're deliberately going to delete more than deliberately going to delete more than deliberately going to delete more than we should. Some of the things we delete, we should. Some of the things we delete, we should. Some of the things we delete, we're going to put back in. At least one we're going to put back in. At least one we're going to put back in. At least one in 10 things we're going to add back in. in 10 things we're going to add back in. in 10 things we're going to add back in. People get a little shook by that. But People get a little shook by that. But People get a little shook by that. But if you're so conservative in deleting if you're so conservative in deleting if you're so conservative in deleting that you never have to put anything back that you never have to put anything back that you never have to put anything back in, you obviously have a lot of stuff in, you obviously have a lot of stuff in, you obviously have a lot of stuff that isn't needed. At SpaceX, I would that isn't needed. At SpaceX, I would that isn't needed. At SpaceX, I would tell the team, "We're on a deletion tell the team, "We're on a deletion tell the team, "We're on a deletion rampage. Nothing is sacred. Please go rampage. Nothing is sacred. Please go rampage. Nothing is sacred. Please go ultra hardcore on deletion and ultra hardcore on deletion and ultra hardcore on deletion and simplification. We put immense effort simplification. We put immense effort simplification. We put immense effort into reducing mass. Then once you have into reducing mass. Then once you have into reducing mass. Then once you have deleted as much as you can, the third deleted as much as you can, the third deleted as much as you can, the third step is to simplify or optimize. The step is to simplify or optimize. The step is to simplify or optimize. The third step, the third step, not the third step, the third step, not the third step, the third step, not the first step. Why? Because if not, you're first step. Why? Because if not, you're first step. Why? Because if not, you're working on optimizing a thing that working on optimizing a thing that working on optimizing a thing that should simply not exist. Then and only should simply not exist. Then and only should simply not exist. Then and only then, step four, accelerate cycle time. then, step four, accelerate cycle time. then, step four, accelerate cycle time. Once you're moving in the right Once you're moving in the right Once you're moving in the right direction and moving efficiently, you're direction and moving efficiently, you're direction and moving efficiently, you're moving too slow. Go faster. You can moving too slow. Go faster. You can moving too slow. Go faster. You can always make things go faster. But do not always make things go faster. But do not always make things go faster. But do not go faster until you have worked on the go faster until you have worked on the go faster until you have worked on the other three things first. I mistakenly other three things first. I mistakenly other three things first. I mistakenly spent a lot of time accelerating spent a lot of time accelerating spent a lot of time accelerating processes that I later realized should processes that I later realized should processes that I later realized should have been deleted. Speeding up something have been deleted. Speeding up something have been deleted. Speeding up something that shouldn't exist is absurd. If that shouldn't exist is absurd. If that shouldn't exist is absurd. If you're digging your grave, don't dig it you're digging your grave, don't dig it you're digging your grave, don't dig it faster. Stop digging. And then the final faster. Stop digging. And then the final faster. Stop digging. And then the final step is to automate. The big mistake in step is to automate. The big mistake in step is to automate. The big mistake in the Tesla factories was I began by the Tesla factories was I began by the Tesla factories was I began by trying to automate every step. To fix trying to automate every step. To fix trying to automate every step. To fix that, we had to tear hundreds of that, we had to tear hundreds of that, we had to tear hundreds of expensive robots out of the production expensive robots out of the production expensive robots out of the production line. We put a hole in the side of the line. We put a hole in the side of the line. We put a hole in the side of the building just to remove all that building just to remove all that building just to remove all that equipment. Always wait until the end of equipment. Always wait until the end of equipment. Always wait until the end of designing a process after you've designing a process after you've designing a process after you've questioned all the requirements and questioned all the requirements and questioned all the requirements and deleted unnecessary parts before you deleted unnecessary parts before you deleted unnecessary parts before you introduce automation. And then this is introduce automation. And then this is introduce automation. And then this is one of my all-time favorite Elon quotes. one of my all-time favorite Elon quotes. one of my all-time favorite Elon quotes. A maniacal sense of urgency is our A maniacal sense of urgency is our A maniacal sense of urgency is our operating principle. operating principle. operating principle. Get rid of all large meetings unless Get rid of all large meetings unless Get rid of all large meetings unless you're certain they're providing value you're certain they're providing value you're certain they're providing value to the whole audience, in which case to the whole audience, in which case to the whole audience, in which case keep them short. Also, get rid of keep them short. Also, get rid of keep them short. Also, get rid of frequent meetings unless you're dealing frequent meetings unless you're dealing frequent meetings unless you're dealing with an extremely urgent matter. Meeting with an extremely urgent matter. Meeting with an extremely urgent matter. Meeting frequency should drop rapidly once the frequency should drop rapidly once the frequency should drop rapidly once the urgent matter is resolved. Walk out of a urgent matter is resolved. Walk out of a urgent matter is resolved. Walk out of a meeting or drop off a call as soon as meeting or drop off a call as soon as meeting or drop off a call as soon as it's obvious you aren't adding value. It it's obvious you aren't adding value. It it's obvious you aren't adding value. It is not rude to leave. It is rude to make is not rude to leave. It is rude to make is not rude to leave. It is rude to make someone else stay and waste their time. someone else stay and waste their time. someone else stay and waste their time. The only true currency is time. The only The only true currency is time. The only The only true currency is time. The only true currency is time. The best offense, true currency is time. The best offense, true currency is time. The best offense, this is this is incredible. It talks this is this is incredible. It talks this is this is incredible. It talks about speed as both offense and defense. about speed as both offense and defense. about speed as both offense and defense. The best offense and defense is speed. The best offense and defense is speed. The best offense and defense is speed. The SR71 Blackbird is a military plane The SR71 Blackbird is a military plane The SR71 Blackbird is a military plane with almost no defense except with almost no defense except with almost no defense except acceleration. It was never shot down, acceleration. It was never shot down, acceleration. It was never shot down, not even once. Over 3,000 missiles were not even once. Over 3,000 missiles were not even once. Over 3,000 missiles were shot at the SR71 Blackbird and none hit. shot at the SR71 Blackbird and none hit. shot at the SR71 Blackbird and none hit. All it did was go faster. The power of All it did was go faster. The power of All it did was go faster. The power of speed is underappreciated as a speed is underappreciated as a speed is underappreciated as a competitive factor. A factory moving at competitive factor. A factory moving at competitive factor. A factory moving at twice the speed of another factory is twice the speed of another factory is twice the speed of another factory is basically equivalent to two factories. I basically equivalent to two factories. I basically equivalent to two factories. I have this is so this is so great when he have this is so this is so great when he have this is so this is so great when he talks about how he's operating on a talks about how he's operating on a talks about how he's operating on a day-to-day basis. It's related to speed. day-to-day basis. It's related to speed. day-to-day basis. It's related to speed. I have a running triage of what I do at I have a running triage of what I do at I have a running triage of what I do at each company constantly thinking what is each company constantly thinking what is each company constantly thinking what is the most useful thing I could do. Now in the most useful thing I could do. Now in the most useful thing I could do. Now in early SpaceX I told the team everything early SpaceX I told the team everything early SpaceX I told the team everything we did was a function of our burn rate. we did was a function of our burn rate. we did was a function of our burn rate. We were burning through $100,000 a day. We were burning through $100,000 a day. We were burning through $100,000 a day. In the same way, I expected the revenue In the same way, I expected the revenue In the same way, I expected the revenue in 10 years to be $10 million a day. in 10 years to be $10 million a day. in 10 years to be $10 million a day. Every day we were slower to achieve our Every day we were slower to achieve our Every day we were slower to achieve our goals was a day of missing out on that goals was a day of missing out on that goals was a day of missing out on that revenue. And then he goes back to the revenue. And then he goes back to the revenue. And then he goes back to the idea of this only true currency is time. idea of this only true currency is time. idea of this only true currency is time. It's so valuable. Tesla is getting to It's so valuable. Tesla is getting to It's so valuable. Tesla is getting to the point where every high quality the point where every high quality the point where every high quality minute of thinking has a million dollar minute of thinking has a million dollar minute of thinking has a million dollar impact. That is insane. If Tesla is impact. That is insane. If Tesla is impact. That is insane. If Tesla is doing two billion a week in revenue, doing two billion a week in revenue, doing two billion a week in revenue, that's about 300 million a day, 7 days a that's about 300 million a day, 7 days a that's about 300 million a day, 7 days a week. There are many instances where a week. There are many instances where a week. There are many instances where a halfhour meeting improved the company's halfhour meeting improved the company's halfhour meeting improved the company's financial outcomes by a hund00 million. financial outcomes by a hund00 million. financial outcomes by a hund00 million. The one thing you cannot replace is The one thing you cannot replace is The one thing you cannot replace is time. I often tell the Tesla team, it's time. I often tell the Tesla team, it's time. I often tell the Tesla team, it's okay to scrap equipment or money. It's okay to scrap equipment or money. It's okay to scrap equipment or money. It's not okay to scrap time. And then he has not okay to scrap time. And then he has not okay to scrap time. And then he has a great sentence here that I think is a great sentence here that I think is a great sentence here that I think is obvious, but I don't think we think obvious, but I don't think we think obvious, but I don't think we think enough about. He says, the longer you do enough about. He says, the longer you do enough about. He says, the longer you do anything, the more mistakes you will anything, the more mistakes you will anything, the more mistakes you will make cumulatively. I just this did this make cumulatively. I just this did this make cumulatively. I just this did this episode on Roger Federer and he made the episode on Roger Federer and he made the episode on Roger Federer and he made the point that the people that are best in point that the people that are best in point that the people that are best in the world at what they do, they made way the world at what they do, they made way the world at what they do, they made way more mistakes than anybody else in their more mistakes than anybody else in their more mistakes than anybody else in their profession. And so Elon says the longer profession. And so Elon says the longer profession. And so Elon says the longer you do anything, the more mistakes you you do anything, the more mistakes you you do anything, the more mistakes you will make cumulatively. And then this will make cumulatively. And then this will make cumulatively. And then this may be the main theme of the book, the may be the main theme of the book, the may be the main theme of the book, the fact that we must make stuff. Elon is fact that we must make stuff. Elon is fact that we must make stuff. Elon is sharing these ideas. He's encouraging sharing these ideas. He's encouraging sharing these ideas. He's encouraging you to make things. Manufacturing is you to make things. Manufacturing is you to make things. Manufacturing is underrated. It is hard. We must make underrated. It is hard. We must make underrated. It is hard. We must make stuff. Some people have an absurd view stuff. Some people have an absurd view stuff. Some people have an absurd view of the economy as a magic thing that of the economy as a magic thing that of the economy as a magic thing that just produces stuff. Let me break it to just produces stuff. Let me break it to just produces stuff. Let me break it to the fools out there. If we don't make the fools out there. If we don't make the fools out there. If we don't make stuff, there's no stuff. Some people stuff, there's no stuff. Some people stuff, there's no stuff. Some people have become detached from reality. This have become detached from reality. This have become detached from reality. This notion that the government can just send notion that the government can just send notion that the government can just send checks out to everyone and everything checks out to everyone and everything checks out to everyone and everything will be fine is not true. You can't just will be fine is not true. You can't just will be fine is not true. You can't just legislate money to solve things. If you legislate money to solve things. If you legislate money to solve things. If you don't make stuff, there is no stuff. don't make stuff, there is no stuff. don't make stuff, there is no stuff. Technological progress is not Technological progress is not Technological progress is not inevitable. It's not some kind of inevitable. It's not some kind of inevitable. It's not some kind of abstract concept. Humans make abstract concept. Humans make abstract concept. Humans make technology. If we don't do it, it will technology. If we don't do it, it will technology. If we don't do it, it will not happen. Somebody has to do the real not happen. Somebody has to do the real not happen. Somebody has to do the real work. There is an overallocation of work. There is an overallocation of work. There is an overallocation of talent in finance. Too many smart people talent in finance. Too many smart people talent in finance. Too many smart people go into finance. We should have fewer go into finance. We should have fewer go into finance. We should have fewer people doing finance and more people people doing finance and more people people doing finance and more people making stuff. Manufacturing used to be making stuff. Manufacturing used to be making stuff. Manufacturing used to be highly valued in the United States. highly valued in the United States. highly valued in the United States. These days, it hasn't been as much, These days, it hasn't been as much, These days, it hasn't been as much, which I think is wrong. Making cars is which I think is wrong. Making cars is which I think is wrong. Making cars is an honest day's living. That's for sure. an honest day's living. That's for sure. an honest day's living. That's for sure. Making anything or providing a valuable Making anything or providing a valuable Making anything or providing a valuable service like good entertainment, good service like good entertainment, good service like good entertainment, good information, these are valuable things information, these are valuable things information, these are valuable things to do. I've got mad respect for the to do. I've got mad respect for the to do. I've got mad respect for the makers of things. makers of things. makers of things. This is a great maxim. I don't even This is a great maxim. I don't even This is a great maxim. I don't even think I have to explain it. Elon does think I have to explain it. Elon does think I have to explain it. Elon does this all the time. He says attack the this all the time. He says attack the this all the time. He says attack the constraint. Another great section that constraint. Another great section that constraint. Another great section that says manufacturing is the moat. Two says manufacturing is the moat. Two says manufacturing is the moat. Two things define manufacturing things define manufacturing things define manufacturing competitiveness. Economies of scale and competitiveness. Economies of scale and competitiveness. Economies of scale and technology. If you maximize your level technology. If you maximize your level technology. If you maximize your level of technology and maximize your level of of technology and maximize your level of of technology and maximize your level of scale, this is obviously going to be the scale, this is obviously going to be the scale, this is obviously going to be the most competitive situation. That's why most competitive situation. That's why most competitive situation. That's why plants are so freaking giant. And he plants are so freaking giant. And he plants are so freaking giant. And he talks about some of the innovations at talks about some of the innovations at talks about some of the innovations at Tesla. We've also introduced a major Tesla. We've also introduced a major Tesla. We've also introduced a major innovation which is to cast the car as a innovation which is to cast the car as a innovation which is to cast the car as a single piece. I got this idea from toy single piece. I got this idea from toy single piece. I got this idea from toy cars. I wondered, "Toys are cheap. How cars. I wondered, "Toys are cheap. How cars. I wondered, "Toys are cheap. How do they make toys? They just cast them." do they make toys? They just cast them." do they make toys? They just cast them." I was like, "Well, can you build a I was like, "Well, can you build a I was like, "Well, can you build a casting machine big enough for a car?" casting machine big enough for a car?" casting machine big enough for a car?" They said, "No one has ever done that They said, "No one has ever done that They said, "No one has ever done that before." I said, "Are we breaking the before." I said, "Are we breaking the before." I said, "Are we breaking the laws of physics?" They said, "No." So, I laws of physics?" They said, "No." So, I laws of physics?" They said, "No." So, I said, "Let's just ask them." There were said, "Let's just ask them." There were said, "Let's just ask them." There were six major casting machine suppliers in six major casting machine suppliers in six major casting machine suppliers in the world. Five of them said no, and the the world. Five of them said no, and the the world. Five of them said no, and the sixth said maybe. I said, "I'll take sixth said maybe. I said, "I'll take sixth said maybe. I said, "I'll take that as a yes." And then part three of that as a yes." And then part three of that as a yes." And then part three of the book is all about building the book is all about building the book is all about building companies. It starts with a question and companies. It starts with a question and companies. It starts with a question and answer from Elon. Question, what fuels answer from Elon. Question, what fuels answer from Elon. Question, what fuels your creativity? Answer: pressure, your creativity? Answer: pressure, your creativity? Answer: pressure, necessity. And in this section, he's necessity. And in this section, he's necessity. And in this section, he's just got a lot of practical advice like just got a lot of practical advice like just got a lot of practical advice like you want to sell your product straight you want to sell your product straight you want to sell your product straight to the end consumer. You don't want to the end consumer. You don't want to the end consumer. You don't want somebody standing in between your what somebody standing in between your what somebody standing in between your what you're making and what you're selling. you're making and what you're selling. you're making and what you're selling. Talks about the fact that, you know, you Talks about the fact that, you know, you Talks about the fact that, you know, you should be putting your own money into should be putting your own money into should be putting your own money into your companies. I always wanted to push your companies. I always wanted to push your companies. I always wanted to push my chips back on the table or play the my chips back on the table or play the my chips back on the table or play the next level of the game. I'm not good at next level of the game. I'm not good at next level of the game. I'm not good at sitting back. And he tells a hilarious sitting back. And he tells a hilarious sitting back. And he tells a hilarious story about starting X.com back in the story about starting X.com back in the story about starting X.com back in the '90s. Mike Morris joined the company '90s. Mike Morris joined the company '90s. Mike Morris joined the company board. He told me, "Dude, you should not board. He told me, "Dude, you should not board. He told me, "Dude, you should not invest basically everything except your invest basically everything except your invest basically everything except your house and car in your startup, but I house and car in your startup, but I house and car in your startup, but I kept my chips on the table." And then he kept my chips on the table." And then he kept my chips on the table." And then he just goes back to this idea of this just goes back to this idea of this just goes back to this idea of this constant iteration trying to get constant iteration trying to get constant iteration trying to get essentially using reality as a essentially using reality as a essentially using reality as a validation tool is the way I think about validation tool is the way I think about validation tool is the way I think about this. I'm trying to create an accurate this. I'm trying to create an accurate this. I'm trying to create an accurate mental model of reality. If I have a mental model of reality. If I have a mental model of reality. If I have a wrong view on something or if there's an wrong view on something or if there's an wrong view on something or if there's an improvement that can be made, I say, "I improvement that can be made, I say, "I improvement that can be made, I say, "I used to think this which turned out to used to think this which turned out to used to think this which turned out to be wrong. Thank goodness I don't have be wrong. Thank goodness I don't have be wrong. Thank goodness I don't have that wrong belief anymore. I'm a huge that wrong belief anymore. I'm a huge that wrong belief anymore. I'm a huge believer in feedback and he likes to believer in feedback and he likes to believer in feedback and he likes to compete. He says what matters to me is compete. He says what matters to me is compete. He says what matters to me is winning and not in a small way. Goes winning and not in a small way. Goes winning and not in a small way. Goes back to after he sold X.com which turned back to after he sold X.com which turned back to after he sold X.com which turned into PayPal and makes the most important into PayPal and makes the most important into PayPal and makes the most important decision of his life which is to start decision of his life which is to start decision of his life which is to start SpaceX. He says I could go and buy one SpaceX. He says I could go and buy one SpaceX. He says I could go and buy one of the islands of the Bahamas and turn of the islands of the Bahamas and turn of the islands of the Bahamas and turn it into my personal FFT but I'm much it into my personal FFT but I'm much it into my personal FFT but I'm much more interested in trying to build and more interested in trying to build and more interested in trying to build and create a new company. I haven't spent my create a new company. I haven't spent my create a new company. I haven't spent my winnings. I'm going to put almost all of winnings. I'm going to put almost all of winnings. I'm going to put almost all of it back into a new game. And so he's it back into a new game. And so he's it back into a new game. And so he's talking about this idea like well I made talking about this idea like well I made talking about this idea like well I made a bunch of money twice Zip 2 and PayPal a bunch of money twice Zip 2 and PayPal a bunch of money twice Zip 2 and PayPal building software. Why go into you know building software. Why go into you know building software. Why go into you know space, energy, automotive? And he says a space, energy, automotive? And he says a space, energy, automotive? And he says a lot of entrepreneurial talent and lot of entrepreneurial talent and lot of entrepreneurial talent and financing goes into the internet. Other financing goes into the internet. Other financing goes into the internet. Other sectors like automotive, solar and space sectors like automotive, solar and space sectors like automotive, solar and space don't see new entrance. Not a lot of don't see new entrance. Not a lot of don't see new entrance. Not a lot of entrepreneurs go into those areas and entrepreneurs go into those areas and entrepreneurs go into those areas and not a lot of capital goes into those not a lot of capital goes into those not a lot of capital goes into those startups. That is a problem because startups. That is a problem because startups. That is a problem because innovation tends to come from new innovation tends to come from new innovation tends to come from new entrance to an industry. In an igopoly, entrance to an industry. In an igopoly, entrance to an industry. In an igopoly, no one is forced to innovate. New no one is forced to innovate. New no one is forced to innovate. New entrance drive innovation more than entrance drive innovation more than entrance drive innovation more than anything. which is why I've devoted my anything. which is why I've devoted my anything. which is why I've devoted my efforts to building new companies in efforts to building new companies in efforts to building new companies in those industries. He goes back to the those industries. He goes back to the those industries. He goes back to the idea, don't celebrate the prototype, idea, don't celebrate the prototype, idea, don't celebrate the prototype, celebrate production. Prototypes are celebrate production. Prototypes are celebrate production. Prototypes are easy. Production, especially profitable easy. Production, especially profitable easy. Production, especially profitable production, is insanely hard, insanely production, is insanely hard, insanely production, is insanely hard, insanely painful. He says, we made so many painful. He says, we made so many painful. He says, we made so many mistakes in the beginning of Tesla. mistakes in the beginning of Tesla. mistakes in the beginning of Tesla. Almost every decision we made was wrong. Almost every decision we made was wrong. Almost every decision we made was wrong. We made a finically, individually made, We made a finically, individually made, We made a finically, individually made, super expensive prototype. I remember in super expensive prototype. I remember in super expensive prototype. I remember in the early days giving a test ride to the early days giving a test ride to the early days giving a test ride to Larry Paige and Sergey Brin, the Larry Paige and Sergey Brin, the Larry Paige and Sergey Brin, the founders of Google. There was some bug founders of Google. There was some bug founders of Google. There was some bug in the system, and damn it, the car in the system, and damn it, the car in the system, and damn it, the car would only go 10 miles an hour. I was in would only go 10 miles an hour. I was in would only go 10 miles an hour. I was in the passenger seat saying, "Guys, I the passenger seat saying, "Guys, I the passenger seat saying, "Guys, I swear it goes a lot faster than this. swear it goes a lot faster than this. swear it goes a lot faster than this. They were kind enough to put a little They were kind enough to put a little They were kind enough to put a little investment into the company despite the investment into the company despite the investment into the company despite the world's worst demo. It was flatout world's worst demo. It was flatout world's worst demo. It was flatout burning I got to read that again. It was burning I got to read that again. It was burning I got to read that again. It was just a flatout burning dumpster fire of just a flatout burning dumpster fire of just a flatout burning dumpster fire of stupidity. stupidity. stupidity. It would have been much much smarter to It would have been much much smarter to It would have been much much smarter to start with a clean sheet design and not start with a clean sheet design and not start with a clean sheet design and not try to modify something else. I was try to modify something else. I was try to modify something else. I was going to start an EV company with JB going to start an EV company with JB going to start an EV company with JB Strable based on the AC Propulsion Strable based on the AC Propulsion Strable based on the AC Propulsion prototype. When I asked AC Propulsion if prototype. When I asked AC Propulsion if prototype. When I asked AC Propulsion if it was okay to do that, they said, it was okay to do that, they said, it was okay to do that, they said, "There's some other people who want to "There's some other people who want to "There's some other people who want to create an EV company. Would you like to create an EV company. Would you like to create an EV company. Would you like to join forces with them?" I said, "Okay." join forces with them?" I said, "Okay." join forces with them?" I said, "Okay." That was a huge mistake. JB and I should That was a huge mistake. JB and I should That was a huge mistake. JB and I should have just started the company ourselves. have just started the company ourselves. have just started the company ourselves. My default inclination is to start My default inclination is to start My default inclination is to start things from scratch, even more so after things from scratch, even more so after things from scratch, even more so after this experience. this experience. this experience. And there's just huge chunks of And there's just huge chunks of And there's just huge chunks of interesting tidbits from the early interesting tidbits from the early interesting tidbits from the early Tesla, the early history of Tesla, I Tesla, the early history of Tesla, I Tesla, the early history of Tesla, I should say. He talks about he didn't should say. He talks about he didn't should say. He talks about he didn't didn't wasn't planning on becoming Tesla didn't wasn't planning on becoming Tesla didn't wasn't planning on becoming Tesla CEO. I never wanted to be CEO, but I CEO. I never wanted to be CEO, but I CEO. I never wanted to be CEO, but I learned you could not truly be the chief learned you could not truly be the chief learned you could not truly be the chief technology or product officer unless you technology or product officer unless you technology or product officer unless you were the CEO. Being CEO of two startups were the CEO. Being CEO of two startups were the CEO. Being CEO of two startups at the same time was not appealing. It at the same time was not appealing. It at the same time was not appealing. It shouldn't be appealing for anyone shouldn't be appealing for anyone shouldn't be appealing for anyone thinking it was a good idea. It was a thinking it was a good idea. It was a thinking it was a good idea. It was a terrible idea. I have This is hilarious. terrible idea. I have This is hilarious. terrible idea. I have This is hilarious. I have a habit of biting off more than I I have a habit of biting off more than I I have a habit of biting off more than I can chew and just sitting there with can chew and just sitting there with can chew and just sitting there with chipmunk cheeks. And he talks about chipmunk cheeks. And he talks about chipmunk cheeks. And he talks about Tesla should not have worked. The number Tesla should not have worked. The number Tesla should not have worked. The number of American car companies that haven't of American car companies that haven't of American car companies that haven't gone bankrupt is a grand total of two. gone bankrupt is a grand total of two. gone bankrupt is a grand total of two. Ford and Tesla. Starting a car company Ford and Tesla. Starting a car company Ford and Tesla. Starting a car company is idiotic. And then he talks about is idiotic. And then he talks about is idiotic. And then he talks about trying to raise money for Tesla when the trying to raise money for Tesla when the trying to raise money for Tesla when the company looks terrible and they're going company looks terrible and they're going company looks terrible and they're going through a great recession. Trying to through a great recession. Trying to through a great recession. Trying to raise money for a startup electric car raise money for a startup electric car raise money for a startup electric car company in 2008 while GM was going company in 2008 while GM was going company in 2008 while GM was going bankrupt was difficult. The investors I bankrupt was difficult. The investors I bankrupt was difficult. The investors I found said they would invest as much as found said they would invest as much as found said they would invest as much as I put in. So I put in everything. All I put in. So I put in everything. All I put in. So I put in everything. All the money I had left, literally the money I had left, literally the money I had left, literally everything. I didn't have a house. I was everything. I didn't have a house. I was everything. I didn't have a house. I was staying in a friend's spare bedroom. And staying in a friend's spare bedroom. And staying in a friend's spare bedroom. And he talks about how grateful he is for he talks about how grateful he is for he talks about how grateful he is for these investors to stand up at the time. these investors to stand up at the time. these investors to stand up at the time. He says Tesa did not look appealing He says Tesa did not look appealing He says Tesa did not look appealing either. There was no DOE loan. There was either. There was no DOE loan. There was either. There was no DOE loan. There was no dimer deal. The car had a negative no dimer deal. The car had a negative no dimer deal. The car had a negative gross margin. Oh, and the largest gross margin. Oh, and the largest gross margin. Oh, and the largest shareholder was pissed off going AWOL. shareholder was pissed off going AWOL. shareholder was pissed off going AWOL. it was ugly and this pushes them to the it was ugly and this pushes them to the it was ugly and this pushes them to the edge of sanity. And so he's asked the edge of sanity. And so he's asked the edge of sanity. And so he's asked the question like, how do you prioritize question like, how do you prioritize question like, how do you prioritize with so many things going wrong at once? with so many things going wrong at once? with so many things going wrong at once? Prioritizing has usually been out of Prioritizing has usually been out of Prioritizing has usually been out of desperation, not selection. It's not, desperation, not selection. It's not, desperation, not selection. It's not, oh, let's sit back and leisurely decide oh, let's sit back and leisurely decide oh, let's sit back and leisurely decide how we should spend these resources. how we should spend these resources. how we should spend these resources. It's this isn't working. If we don't It's this isn't working. If we don't It's this isn't working. If we don't make it work, we're going to go make it work, we're going to go make it work, we're going to go bankrupt, so we better make it work. We bankrupt, so we better make it work. We bankrupt, so we better make it work. We messed up almost every aspect of the messed up almost every aspect of the messed up almost every aspect of the Model 3 production line. There were so Model 3 production line. There were so Model 3 production line. There were so many mistakes, the entire company had to many mistakes, the entire company had to many mistakes, the entire company had to be devoted to fixing them. We took be devoted to fixing them. We took be devoted to fixing them. We took everyone off every other project. We all everyone off every other project. We all everyone off every other project. We all started working on the Model 3. We had started working on the Model 3. We had started working on the Model 3. We had to make it work or there wouldn't be any to make it work or there wouldn't be any to make it work or there wouldn't be any more Tesla. I felt like Indiana Jones more Tesla. I felt like Indiana Jones more Tesla. I felt like Indiana Jones running down the temple. There's a huge running down the temple. There's a huge running down the temple. There's a huge boulder chasing you and you need to jump boulder chasing you and you need to jump boulder chasing you and you need to jump across a giant pit in the ground. If you across a giant pit in the ground. If you across a giant pit in the ground. If you slow down, the boulder will crush you. slow down, the boulder will crush you. slow down, the boulder will crush you. And if you don't make the leap, you'll And if you don't make the leap, you'll And if you don't make the leap, you'll die in the pit. That's prioritizing. And die in the pit. That's prioritizing. And die in the pit. That's prioritizing. And so he was asked the question, "How did so he was asked the question, "How did so he was asked the question, "How did you motivate the team to do whatever it you motivate the team to do whatever it you motivate the team to do whatever it takes?" I told them we had to go ultra takes?" I told them we had to go ultra takes?" I told them we had to go ultra hardcore. They had to prepare for a hardcore. They had to prepare for a hardcore. They had to prepare for a level of intensity greater than anything level of intensity greater than anything level of intensity greater than anything they had experienced before. I lived in they had experienced before. I lived in they had experienced before. I lived in the factories for 3 years fixing that the factories for 3 years fixing that the factories for 3 years fixing that production line, running around like a production line, running around like a production line, running around like a maniac through every part of the maniac through every part of the maniac through every part of the factory, living with the team. I slept factory, living with the team. I slept factory, living with the team. I slept on the floor so the team going through a on the floor so the team going through a on the floor so the team going through a hard time could see me on the floor. And hard time could see me on the floor. And hard time could see me on the floor. And they knew I was not in some ivory tower. they knew I was not in some ivory tower. they knew I was not in some ivory tower. Whatever pain they experienced, I had Whatever pain they experienced, I had Whatever pain they experienced, I had more. I worked to the edge of sanity. more. I worked to the edge of sanity. more. I worked to the edge of sanity. But here's the result. At this point, I But here's the result. At this point, I But here's the result. At this point, I think I know more about manufacturing think I know more about manufacturing think I know more about manufacturing than anyone currently alive on Earth. I than anyone currently alive on Earth. I than anyone currently alive on Earth. I can tell you every I can tell you how can tell you every I can tell you how can tell you every I can tell you how every damn part of that car is made. every damn part of that car is made. every damn part of that car is made. That's what happens if you live in the That's what happens if you live in the That's what happens if you live in the factory for three years. factory for three years. factory for three years. And so in this section, he's talking And so in this section, he's talking And so in this section, he's talking about control and vertical integration, about control and vertical integration, about control and vertical integration, but really it feeds what he said was a but really it feeds what he said was a but really it feeds what he said was a massive competitive advantage. And massive competitive advantage. And massive competitive advantage. And that's just the speed at which your that's just the speed at which your that's just the speed at which your company can move. There's a lot of company can move. There's a lot of company can move. There's a lot of vertical integration at Tesla. We make vertical integration at Tesla. We make vertical integration at Tesla. We make the battery pack, the power electronics, the battery pack, the power electronics, the battery pack, the power electronics, and the drive chain ourselves. We're and the drive chain ourselves. We're and the drive chain ourselves. We're vertically integrated because the pace vertically integrated because the pace vertically integrated because the pace we needed to move was much faster than we needed to move was much faster than we needed to move was much faster than the supply chain could move. To the the supply chain could move. To the the supply chain could move. To the degree that you rely on the legacy degree that you rely on the legacy degree that you rely on the legacy supply chain, you inherent their legacy supply chain, you inherent their legacy supply chain, you inherent their legacy constraints, including their speeds, constraints, including their speeds, constraints, including their speeds, cost, and technology. And then Elon cost, and technology. And then Elon cost, and technology. And then Elon talks about even though you're moving talks about even though you're moving talks about even though you're moving fast, you still have to pay attention to fast, you still have to pay attention to fast, you still have to pay attention to every little detail. Most people don't every little detail. Most people don't every little detail. Most people don't consciously notice the small details, consciously notice the small details, consciously notice the small details, but they do subconsciously. Your mind but they do subconsciously. Your mind but they do subconsciously. Your mind takes an overall impression. You know if takes an overall impression. You know if takes an overall impression. You know if something is appealing or not, even something is appealing or not, even something is appealing or not, even though you may not be able to point out though you may not be able to point out though you may not be able to point out exactly why. That sense is a summation exactly why. That sense is a summation exactly why. That sense is a summation of many details. Most of us experience of many details. Most of us experience of many details. Most of us experience this as, "Hey, that's ugly." Or, "That's this as, "Hey, that's ugly." Or, "That's this as, "Hey, that's ugly." Or, "That's beautiful." or wow, that's elegant, but beautiful." or wow, that's elegant, but beautiful." or wow, that's elegant, but can't break down why. Steve Jobs says a can't break down why. Steve Jobs says a can't break down why. Steve Jobs says a great line about this. He said, "A great great line about this. He said, "A great great line about this. He said, "A great product has to be better than it has to product has to be better than it has to product has to be better than it has to be." Pay attention to the little be." Pay attention to the little be." Pay attention to the little details. Train yourself to notice them. details. Train yourself to notice them. details. Train yourself to notice them. If you're trying to make a perfect If you're trying to make a perfect If you're trying to make a perfect product, attention to detail is product, attention to detail is product, attention to detail is essential. Focus on signal over noise. A essential. Focus on signal over noise. A essential. Focus on signal over noise. A lot of companies get confused. They lot of companies get confused. They lot of companies get confused. They spend a lot of money on things that spend a lot of money on things that spend a lot of money on things that don't actually make the product better. don't actually make the product better. don't actually make the product better. We put all of our money back into We put all of our money back into We put all of our money back into research and development, manufacturing, research and development, manufacturing, research and development, manufacturing, and design. for any company. Ask, "Are and design. for any company. Ask, "Are and design. for any company. Ask, "Are the efforts we're expending resulting in the efforts we're expending resulting in the efforts we're expending resulting in a better product or service? If they're a better product or service? If they're a better product or service? If they're not, stop those efforts." And he goes not, stop those efforts." And he goes not, stop those efforts." And he goes back to this idea of picking a mission. back to this idea of picking a mission. back to this idea of picking a mission. Like, you have one life. Just pick a Like, you have one life. Just pick a Like, you have one life. Just pick a mission you think is important. I don't mission you think is important. I don't mission you think is important. I don't look at ideas and ask, "What is the look at ideas and ask, "What is the look at ideas and ask, "What is the rankordered list of best business rankordered list of best business rankordered list of best business opportunities from a financial opportunities from a financial opportunities from a financial standpoint? I look for problems that are standpoint? I look for problems that are standpoint? I look for problems that are important to fix." Company stock value important to fix." Company stock value important to fix." Company stock value is not a metric by which I judge my own is not a metric by which I judge my own is not a metric by which I judge my own achievements. achievements. achievements. It's not like I was trying to figure out It's not like I was trying to figure out It's not like I was trying to figure out the rankordered best way to invest my the rankordered best way to invest my the rankordered best way to invest my money and on that basis I chose space. I money and on that basis I chose space. I money and on that basis I chose space. I didn't think I could do real estate or didn't think I could do real estate or didn't think I could do real estate or invest in shoemaking and wow space has invest in shoemaking and wow space has invest in shoemaking and wow space has the highest return on investment. That the highest return on investment. That the highest return on investment. That was not my premise. The likeliest was not my premise. The likeliest was not my premise. The likeliest outcome is that I would lose all my outcome is that I would lose all my outcome is that I would lose all my money. But what is the alternative? No money. But what is the alternative? No money. But what is the alternative? No progress in space exploration. We've got progress in space exploration. We've got progress in space exploration. We've got to give this a shot or we're stuck on to give this a shot or we're stuck on to give this a shot or we're stuck on Earth forever. And you know, in present Earth forever. And you know, in present Earth forever. And you know, in present day, SpaceX is one of the most valuable day, SpaceX is one of the most valuable day, SpaceX is one of the most valuable private companies on the planet. I've private companies on the planet. I've private companies on the planet. I've been reading a lot about it lately. And been reading a lot about it lately. And been reading a lot about it lately. And something I just kept in mind is the something I just kept in mind is the something I just kept in mind is the fact that Elon started it 24 years ago. fact that Elon started it 24 years ago. fact that Elon started it 24 years ago. He was 30 years old. And everybody made He was 30 years old. And everybody made He was 30 years old. And everybody made fun of him. They kept calling him this fun of him. They kept calling him this fun of him. They kept calling him this internet guy playing with expensive internet guy playing with expensive internet guy playing with expensive toys. This software guy is what they toys. This software guy is what they toys. This software guy is what they would call him. And yet, the more he would call him. And yet, the more he would call him. And yet, the more he learned about this, the more he started learned about this, the more he started learned about this, the more he started reading, started talking to people, the reading, started talking to people, the reading, started talking to people, the more convinced he thought there was a more convinced he thought there was a more convinced he thought there was a massive opportunity here. He has a massive opportunity here. He has a massive opportunity here. He has a funny, everybody's heard this idea of, funny, everybody's heard this idea of, funny, everybody's heard this idea of, you know, him breaking down what the you know, him breaking down what the you know, him breaking down what the material cost for a rocket are from material cost for a rocket are from material cost for a rocket are from first principles thinking, but he also, first principles thinking, but he also, first principles thinking, but he also, this is the first time I think I've ever this is the first time I think I've ever this is the first time I think I've ever seen this in anything I've read on Elon. seen this in anything I've read on Elon. seen this in anything I've read on Elon. He has a funny way to to describe why he He has a funny way to to describe why he He has a funny way to to describe why he thought there was also an opportunity to thought there was also an opportunity to thought there was also an opportunity to make a more cost-effective launch make a more cost-effective launch make a more cost-effective launch vehicle because at the time, Russia was vehicle because at the time, Russia was vehicle because at the time, Russia was the only option. And he goes, "How could the only option. And he goes, "How could the only option. And he goes, "How could the Russians build lowcost rockets? It's the Russians build lowcost rockets? It's the Russians build lowcost rockets? It's not like we drive Russian cars, fly not like we drive Russian cars, fly not like we drive Russian cars, fly Russian planes, or have Russian kitchen Russian planes, or have Russian kitchen Russian planes, or have Russian kitchen appliances. the US is a pretty appliances. the US is a pretty appliances. the US is a pretty competitive place and we should be able competitive place and we should be able competitive place and we should be able to build a costefficient launch vehicle. to build a costefficient launch vehicle. to build a costefficient launch vehicle. And then he starts analyzing the And then he starts analyzing the And then he starts analyzing the industry and this just made me laugh industry and this just made me laugh industry and this just made me laugh too. There's a tendency in big aerospace too. There's a tendency in big aerospace too. There's a tendency in big aerospace companies to outsource everything. companies to outsource everything. companies to outsource everything. That's been trendy in many industries, That's been trendy in many industries, That's been trendy in many industries, but aerospace has done it to a but aerospace has done it to a but aerospace has done it to a ridiculous degree. They outsource the ridiculous degree. They outsource the ridiculous degree. They outsource the subcontractors and then the subcontractors and then the subcontractors and then the subcontractors outsource the sub subcontractors outsource the sub subcontractors outsource the sub subcontractors. You have to go four or subcontractors. You have to go four or subcontractors. You have to go four or five layers down to find somebody five layers down to find somebody five layers down to find somebody actually doing the real work, somebody actually doing the real work, somebody actually doing the real work, somebody cutting the metal or shaping the atoms. cutting the metal or shaping the atoms. cutting the metal or shaping the atoms. Every level above that tax on cost. It's Every level above that tax on cost. It's Every level above that tax on cost. It's overhead to the fifth power. I began to overhead to the fifth power. I began to overhead to the fifth power. I began to understand why things were so expensive. understand why things were so expensive. understand why things were so expensive. And once Elon picks a mission, he burns And once Elon picks a mission, he burns And once Elon picks a mission, he burns the boat. He says, "SpaceX is in this the boat. He says, "SpaceX is in this the boat. He says, "SpaceX is in this for the long haul, and come hell or high for the long haul, and come hell or high for the long haul, and come hell or high water, we are going to make this work." water, we are going to make this work." water, we are going to make this work." After three failed attempts, he sends After three failed attempts, he sends After three failed attempts, he sends this email. Here was the email to the this email. Here was the email to the this email. Here was the email to the team. There should be absolutely zero team. There should be absolutely zero team. There should be absolutely zero question that SpaceX will prevail in question that SpaceX will prevail in question that SpaceX will prevail in reaching orbit and demonstrating reaching orbit and demonstrating reaching orbit and demonstrating reliable space transport. For my part, I reliable space transport. For my part, I reliable space transport. For my part, I will never give up. And I mean never. will never give up. And I mean never. will never give up. And I mean never. Thank you for your hard work. Now on to Thank you for your hard work. Now on to Thank you for your hard work. Now on to flight 4. I don't ever give up. I'd have flight 4. I don't ever give up. I'd have flight 4. I don't ever give up. I'd have to be dead or completely incapacitated. to be dead or completely incapacitated. to be dead or completely incapacitated. And then he just goes back to this idea And then he just goes back to this idea And then he just goes back to this idea of building crude prototype as fast as of building crude prototype as fast as of building crude prototype as fast as possible. You want to maximize the possible. You want to maximize the possible. You want to maximize the amount of iterations you do. You want to amount of iterations you do. You want to amount of iterations you do. You want to use reality as your validation tool. He use reality as your validation tool. He use reality as your validation tool. He says the first goal is to make the damn says the first goal is to make the damn says the first goal is to make the damn thing work. We'll optimize it later. thing work. We'll optimize it later. thing work. We'll optimize it later. Initial production was simply a learning Initial production was simply a learning Initial production was simply a learning exercise. None of the initial designs exercise. None of the initial designs exercise. None of the initial designs will be longterm. were just trying to will be longterm. were just trying to will be longterm. were just trying to learn in the shortest period of time. learn in the shortest period of time. learn in the shortest period of time. The early Starship assembly yard looked The early Starship assembly yard looked The early Starship assembly yard looked like a garage shop. We have super like a garage shop. We have super like a garage shop. We have super advanced technology being built in a advanced technology being built in a advanced technology being built in a tent in a parking lot. And then he has a tent in a parking lot. And then he has a tent in a parking lot. And then he has a maxim here. Eliminate what isn't maxim here. Eliminate what isn't maxim here. Eliminate what isn't necessary to solve the key problem. And necessary to solve the key problem. And necessary to solve the key problem. And he gives an example. Early versions of he gives an example. Early versions of he gives an example. Early versions of Starship didn't even have doors. We Starship didn't even have doors. We Starship didn't even have doors. We didn't need doors. We did need to be didn't need doors. We did need to be didn't need doors. We did need to be super focused on getting to orbit. Doors super focused on getting to orbit. Doors super focused on getting to orbit. Doors were just unnecessary complexity. The were just unnecessary complexity. The were just unnecessary complexity. The first 10 ships or more, we won't get first 10 ships or more, we won't get first 10 ships or more, we won't get back from orbit. and he talks about why back from orbit. and he talks about why back from orbit. and he talks about why he had to build something as big as he had to build something as big as he had to build something as big as Starship to begin with. He talks a lot Starship to begin with. He talks a lot Starship to begin with. He talks a lot about the fact that scale has value in about the fact that scale has value in about the fact that scale has value in and of itself to get a meaningful and of itself to get a meaningful and of itself to get a meaningful payload to orbit. Scale is important. We payload to orbit. Scale is important. We payload to orbit. Scale is important. We need to make big things. There is a need to make big things. There is a need to make big things. There is a value to scale here. Scale has value in value to scale here. Scale has value in value to scale here. Scale has value in itself. For example, the same computer itself. For example, the same computer itself. For example, the same computer that controls a tiny rocket controls a that controls a tiny rocket controls a that controls a tiny rocket controls a big rocket. The percentage weight of the big rocket. The percentage weight of the big rocket. The percentage weight of the electronics is significant in a small electronics is significant in a small electronics is significant in a small rocket but becomes vanishingly small in rocket but becomes vanishingly small in rocket but becomes vanishingly small in a big one. And then he's going to give a big one. And then he's going to give a big one. And then he's going to give an example of accumulation of a lot of an example of accumulation of a lot of an example of accumulation of a lot of these ideas that he's been recommending these ideas that he's been recommending these ideas that he's been recommending to you. And I talks about the fact that to you. And I talks about the fact that to you. And I talks about the fact that they removed the landing legs. And he they removed the landing legs. And he they removed the landing legs. And he was asked why did you do this? Again, was asked why did you do this? Again, was asked why did you do this? Again, here we try to think to the limit of here we try to think to the limit of here we try to think to the limit of physics. The problem with landing legs physics. The problem with landing legs physics. The problem with landing legs is they add mass. We have to protect is they add mass. We have to protect is they add mass. We have to protect them during re-entry and we have to get them during re-entry and we have to get them during re-entry and we have to get a giant rocket from wherever it landed a giant rocket from wherever it landed a giant rocket from wherever it landed back onto the launch stand. That is back onto the launch stand. That is back onto the launch stand. That is tricky. I was trying to think of the tricky. I was trying to think of the tricky. I was trying to think of the limit. What's the fastest way to achieve limit. What's the fastest way to achieve limit. What's the fastest way to achieve reusability? it would be to land on the reusability? it would be to land on the reusability? it would be to land on the launch stand. Why not just have it land launch stand. Why not just have it land launch stand. Why not just have it land on the arms of the tower it launches on the arms of the tower it launches on the arms of the tower it launches from? When we first talked about it, it from? When we first talked about it, it from? When we first talked about it, it sounded batshit crazy to custom build a sounded batshit crazy to custom build a sounded batshit crazy to custom build a giant tower to catch the heaviest flying giant tower to catch the heaviest flying giant tower to catch the heaviest flying object ever made with mechanical arms. object ever made with mechanical arms. object ever made with mechanical arms. Pluck it out of the air, but we did it. Pluck it out of the air, but we did it. Pluck it out of the air, but we did it. It's an epic site. Giant robot arms It's an epic site. Giant robot arms It's an epic site. Giant robot arms catching a giant rocket. And then he has catching a giant rocket. And then he has catching a giant rocket. And then he has two sentences here that I think is two sentences here that I think is two sentences here that I think is related about to the work that he did at related about to the work that he did at related about to the work that he did at SpaceX for sure and also Tesla, but SpaceX for sure and also Tesla, but SpaceX for sure and also Tesla, but specifically SpaceX. There must be specifically SpaceX. There must be specifically SpaceX. There must be things you're excited about that you're things you're excited about that you're things you're excited about that you're glad to be alive for. There is something glad to be alive for. There is something glad to be alive for. There is something special, far more rewarding than money special, far more rewarding than money special, far more rewarding than money about working with an epic team to make about working with an epic team to make about working with an epic team to make breakthroughs and it is really a message breakthroughs and it is really a message breakthroughs and it is really a message of optimism. I can't emphasize this of optimism. I can't emphasize this of optimism. I can't emphasize this enough. As long as we push hard and are enough. As long as we push hard and are enough. As long as we push hard and are not complacent, the future is going to not complacent, the future is going to not complacent, the future is going to be great. It is insanely hard to build be great. It is insanely hard to build be great. It is insanely hard to build and ship useful products to a large and ship useful products to a large and ship useful products to a large number of people. There's a hell of a number of people. There's a hell of a number of people. There's a hell of a difference between a company that has difference between a company that has difference between a company that has shipped a product and one that hasn't. shipped a product and one that hasn't. shipped a product and one that hasn't. It is night and day. If you create great It is night and day. If you create great It is night and day. If you create great products and services which create products and services which create products and services which create wealth, that should be applauded. You wealth, that should be applauded. You wealth, that should be applauded. You increase the standard of living of the increase the standard of living of the increase the standard of living of the country and perhaps the world. Work on country and perhaps the world. Work on country and perhaps the world. Work on things that you find interesting, things that you find interesting, things that you find interesting, fulfilling, and that contribute some fulfilling, and that contribute some fulfilling, and that contribute some good to the rest of society. good to the rest of society. good to the rest of society. And that is where I'll leave it. I And that is where I'll leave it. I And that is where I'll leave it. I highly, highly encourage you to buy the highly, highly encourage you to buy the highly, highly encourage you to buy the book. I'm releasing this episode on the book. I'm releasing this episode on the book. I'm releasing this episode on the day the book is available for purchase. day the book is available for purchase. day the book is available for purchase. I'd buy one for yourself, buy a few for I'd buy one for yourself, buy a few for I'd buy one for yourself, buy a few for your friends, the people you work with. your friends, the people you work with. your friends, the people you work with. I think these ideas are very important I think these ideas are very important I think these ideas are very important and I would like to help spread them as and I would like to help spread them as and I would like to help spread them as much as possible. The book doesn't have much as possible. The book doesn't have much as possible. The book doesn't have to be read in chronological order. Could to be read in chronological order. Could to be read in chronological order. Could be easily be read in a weekend and your be easily be read in a weekend and your be easily be read in a weekend and your life will be better by doing