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

by Ashlee Vance

“I’m sure Elon would have found a way to make things right, but he definitely took risks that seemed like they could have landed him in jail for using someone else’s money,” he said.

“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.” That ability to stay focused in the midst of a crisis stands as one of Musk’s main advantages over other executives and competitors. “Most people who are under that sort of pressure fray,” Gracias said. “Their decisions go bad. Elon gets hyperrational. He’s still able to make very clear, long-term decisions. The harder it gets, the better he gets. Anyone who saw what he went through firsthand came away with more respect for the

guy. I’ve just never seen anything like his ability to take pain.”

SpaceX makes all of its machines from scratch in the United States. Because of its low costs, SpaceX has once again made the United States a player in the worldwide commercial launch market. Its $60 million per launch cost is much less than what Europe and Japan charge and trumps even the relative bargains offered by the Russians and Chinese, who have the added benefit of decades of sunk government investment into their space programs as well as cheap labor.

United States makes about one-third of all satellites and takes about 60 percent of the global satellite revenue.

Within the next few years, SpaceX expects to cut its price to at least one-tenth that of its rivals. 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.*

Since getting past its near-death experience in 2008, SpaceX has been profitable and is estimated to be worth $12 billion.

He’s hands-on to a degree that would make Hugh Hefner feel inadequate. Part of it stems from SpaceX being the apotheosis of the Cult of Musk. Employees fear Musk. They adore Musk. They give up their lives for Musk, and they usually do all of this simultaneously.

Musk’s demanding management style can only flourish because of the otherworldly—in a literal sense—aspirations of the company.

The SpaceX hiring model places some emphasis on getting top marks at top schools. But most of the attention goes toward spotting engineers who have exhibited type A personality traits over the course of their lives.

The object is to find individuals who ooze passion, can work well as part of a team, and have real-world experience bending metal.

“If you want as hard as it gets, then great. If not, then you shouldn’t come here.” Once at SpaceX, the new employees found out very quickly if they were indeed up for the challenge. Many of them would quit within the first few months because of the ninety-plus-hour workweeks. Others quit because they could not handle just how direct Musk and the other executives were during meetings. “Elon doesn’t know about you and he hasn’t thought through whether or not something is going to hurt your feelings,” Singh said. “He just knows what the fuck he wants done. People who did not normalize to his communication style did not do well.”

Musk has managed to conjure up that Steve Jobs–like zeal among his troops. “His vision is so clear,” Singh said. “He almost hypnotizes you. He gives you the crazy eye, and it’s like, yes, we can get to Mars.” Take that a bit further and you arrive at a pleasure-pain, sadomasochistic vibe that comes with working for Musk.

Yet almost every person—even those who had been fired—still worshipped Musk and talked about him in terms usually reserved for superheroes or deities.

he learned ninety percent of what you know.” People who have spent significant time with Musk will attest to his abilities to absorb incredible quantities of information with near-flawless recall. It’s one of his most impressive and intimidating skills and seems to work just as well in the present day as it did when he was a child vacuuming books into his brain.

I certainly don’t try to set impossible goals. I think impossible goals are demotivating. You don’t want to tell people to go through a wall by banging their head against it.

So, I think generally you do want to have a timeline where, based on everything you know about, the schedule should be X, and you execute towards that, but with the understanding that there will be all sorts of things that you don’t know about that you will encounter that will push the date beyond that. It doesn’t mean that you shouldn’t have tried to aim for that date from the beginning because aiming for something else would have been an arbitrary time increase.

Dealing with the epically aggressive schedules and Musk’s expectations has required SpaceX’s engineers to develop a variety of survival techniques. Musk often asks for highly detailed proposals for how projects will be accomplished. The employees have learned never to break the time needed to accomplish something down into months or weeks. Musk wants day-by-day and hour-by-hour forecasts and sometimes even minute-by-minute countdowns, and the fallout from missed schedules is severe. “You had to put in when you would go to the bathroom,” Brogan said. “I’m like, ‘Elon, sometimes people need to take a long dump.’”

SpaceX’s top managers work together to, in essence, create fake schedules that

they know will please Musk but that are basically impossible to achieve. This would not be such a horrible situation ...

“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.”

And by recruiting hundreds of bright, self-motivated people, SpaceX has maximized the power of the individual.

“I put every ounce of intellectual capital I had into that e-mail and one minute later got that simple response,” Davis said. “Everyone in the company was having that same experience. One of my favorite things about Elon is his ability to make enormous decisions very quickly. That is still how it works today.”

“It was his money that we were spending, and he was keeping an eye on it, as he damn well should,”

Watson said. “He made sure nothing stupid was happening.” Decisions were made quickly during weekly meetings, and the entire company bought into them. “It was amazing how fast people would adapt to what came out of those meetings,” Watson said. “The entire ship could turn ninety degrees instantly.

It’s amazing to watch the amount of knowledge he has accumulated over the years. I don’t want to be the person who ever has to compete with Elon. You might as well leave the business and find something else fun to do. He will outmaneuver you, outthink you, and out-execute you.

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.

the rules are such that you can’t make progress, then you have to fight the rules.

“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?”

“His biggest enemy will be himself and the way he treats people,”

Her deal-making skills extended to negotiating the big-ticket contracts with NASA that kept SpaceX alive during its leanest years,

“It became very clear that there was a huge need for the Falcon 1 but no money for it,” said Shotwell. “The market has to be able to sustain a certain amount of vehicles, and three Falcon 1s per year does not make a business.”

A couple of months later SpaceX received $440 million from NASA to keep developing Dragon so that it could transport people. “Elon is changing the way aerospace business is done,” said NASA’s Stoker.

“That is how a twenty-first-century spaceship should land,” Musk said. “You can just reload propellant and fly again. So long as we continue to throw away rockets and spacecraft, we will never have true access to space.”

There’s a degree to which it’s just never enough for Musk, no matter what it is.

Musk, for example, rewarded a group of thirty employees who had pulled off a tough project for NASA with bonuses that consisted of additional stock option grants.

When the employees heard Musk say that an IPO was years away and would not occur until the Mars mission looked more secure, they started to grumble, and when Musk found out, he addressed all of SpaceX in an e-mail that is a fantastic window into his thinking and how it differs from almost every other CEO’s.

Public company stocks, particularly if big step changes in technology are involved, go through extreme volatility, both for reasons of internal execution and for reasons that have nothing to do with anything except the economy. This causes people to be distracted by the manic-depressive nature of the stock instead of creating great products.