Elon Musk: Tesla, SpaceX, and the Quest for a Fantastic Future

by Ashlee Vance

excess. Stories tracking the

ambitious

The Hitchhiker’s Guide to the Galaxy.

לקרוא

I thought it was more important to let him know quickly what

happened, but I learned it was more important to

have all the info...

laid out Tesla’s strategy of starting with a high-priced, low-volume product and moving down to more affordable products over time, as underlying technology and manufacturing capabilities advanced. Musk and Eberhard were big believers in this strategy, having seen it play out with a number of electronic devices. “Cellphones, refrigerators, color TV’s, they didn’t start off by making a low-end product for masses,”

Tesla had wanted to deliver the Roadster in November 2007, but the transmission issues lingered, and by the time January 1, 2008, rolled around, the company had to once again start from scratch, on a third transmission push.

The Roadster had cost about $140 million to develop, way over the $25 million originally estimated in the 2004 business plan.

For Gracias, the Tesla and SpaceX investor and Musk’s friend, the 2008 period told him everything he would ever need to know about Musk’s character. He saw a man who arrived in the United States with nothing, who had lost a child, who was being pilloried in the press by reporters and his ex-wife and who verged on having his life’s work destroyed. “He has the ability to work harder and endure more stress than anyone I’ve ever met,” Gracias said. “What he went through in 2008 would have broken anyone else. He didn’t just survive. He kept working and stayed focused.”

Reusing its rockets will drive the bulk of this reduction and SpaceX’s competitive advantage. Imagine one airline that flies the same plane over and over again, competing against others that dispose of their planes after every flight.*

While the rest of the aerospace industry has been content to keep sending what look like relics from the 1960s into space, SpaceX has made a point of doing just the opposite. Its reusable rockets and reusable spaceships look like true twenty-first-century machines. The modernization of the equipment is not just for show. It reflects SpaceX’s constant push to advance its technology and change the economics of the industry.

All potential employees who make their way to the end of the interview process then handle one more task. They’re asked to write an essay for Musk about why they want to work at SpaceX. The reward for solving the puzzles, acting clever in interviews, and penning up a good essay is a meeting with Musk. He interviewed almost every one of SpaceX’s first one thousand hires, including the janitors and technicians, and has continued to interview the engineers as the company’s workforce swelled. Each employee receives a warning before going to meet with Musk. The interview, he or she is told, could last anywhere from thirty seconds to fifteen minutes. Elon will likely keep on writing e-mails and working during the initial part of the interview and not speak much. Don’t panic. That’s normal. Eventually, he will turn around in his chair to face you. Even then, though, he might not make actual eye contact with you or fully acknowledge your presence. Don’t panic. That’s normal. In due course, he will speak to you. From that point, the tales of engineers who have interviewed with Musk run the gamut from torturous experiences to the sublime. He might ask one question or he might ask several. You can be sure, though, that he will roll out the Riddle: “You’re standing on the surface of the Earth. You walk one mile south, one mile west, and one mile north. You end up exactly where you started. Where are you?” One answer to that is the North Pole, and most of the engineers get it right awa...

In the early days of SpaceX, Musk knew little about the machines and amount of grunt work that goes into making rockets. He rebuffed requests to buy specialized tooling equipment, until the engineers could explain in clear terms why they needed certain things and until experience taught him better. Musk also had yet to master some of the management techniques for which he would become both famous and to some degree infamous.

“He doesn’t say, ‘You have to do this by Friday at two P.M.,’” Brogan said. “He says, ‘I need the impossible done by Friday at two P.M. Can you do it?’ Then, when you say yes, you are not working hard because he told you to. You’re working hard for yourself. It’s a distinction you can feel. You have signed up to do your own work.”

The guiding principle at SpaceX is to embrace your work and get stuff done. People who await guidance or detailed instructions languish. The same goes for workers who crave feedback. And the absolute worst thing that someone can do is inform Musk that what he’s asking is impossible.

“There is a fundamental problem with regulators. If a regulator agrees to change a rule and something bad happens, they could easily lose their career. Whereas if they change a rule and something good happens, they don’t even get a reward. So, it’s very asymmetric. It’s then very easy to understand why regulators resist changing the rules. It’s because there’s a big punishment on one side and no reward on the other. How would any rational person behave in such a scenario?”

One former SpaceX executive described the working atmosphere as a perpetual-motion machine that runs on a weird mix of dissatisfaction and eternal hope.

This causes people to be distracted by the manic-depressive nature of the stock instead of creating great products.

The Model S also offered a way to fix issues in a manner that people had never before encountered with a mass-produced car. Some of the early owners complained about glitches like the door handles not popping out quite right or their windshield wipers operating at funky speeds. These were inexcusable flaws for such a costly vehicle, but Tesla typically moved with clever efficiency to address them. While the owner slept, Tesla’s engineers tapped into the car via the Internet connection and downloaded software updates. When the customer took the car out for a spin in the morning and found it working right, he was left feeling as if magical elves had done the work.

Tesla had transformed the car into a gadget—a device that actually got better after you bought it.

Marc Tarpenning, the other Tesla cofounder, said as much when he reflected on what Musk has meant to the company. “Elon pushed Tesla so much farther than we ever imagined,” he said.

would have been betting against all the things we believe in, like the power electronics and batteries improving. We decided to put all the effort into going where we think the endpoint is and to never look back.”

It’s almost a binary experience for him. Either you’re trying to make something spectacular with no compromises or you’re not. And if you’re not, Musk considers you a failure. This position can look unreasonable or foolish to outsiders, but the philosophy works for Musk and constantly pushes him and those around him to their limits.

Tesla stunned Wall Street on May 8, 2013, by posting its first-ever profit as a public company—$11 million—on $562 million in sales. It delivered 4,900 Model S sedans during the period.

Musk had helped his cousins come up with this structure and become the company’s chairman and its largest shareholder, owning about a third of SolarCity.

Page said. “I think like we’re just not educating people in this kind of general way. You should have a pretty broad engineering and scientific background. You should have some leadership training and a bit of MBA training or knowledge of how to run things, organize stuff, and raise money. I don’t think most people are doing that, and it’s a big problem.