# Elon Musk  ## Metadata - Author: [[Ashlee Vance]] - Full Title: Elon Musk - Category: #books ## Highlights - One thing that Musk holds in the highest regard is resolve, and he respects people who continue on after being told no. ([Location 344](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=344)) - Tags: [[blue]] - Musk’s ready willingness to tackle impossible things has turned him into a deity in Silicon Valley, where fellow CEOs like Page speak of him in reverential awe, and budding entrepreneurs strive “to be like Elon” just as they had been striving in years past to mimic Steve Jobs. ([Location 366](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=366)) - Tags: [[blue]] - in the early part of 2012, the cynics like me had to take notice of what Musk was actually accomplishing. His once-beleaguered companies were succeeding at unprecedented things. SpaceX flew a supply capsule to the International Space Station and brought it safely back to Earth. Tesla Motors delivered the Model S, a beautiful, all-electric sedan that took the automotive industry’s breath away and slapped Detroit sober. These two feats elevated Musk to the rarest heights among business titans. Only Steve Jobs could claim similar achievements in two such different industries, sometimes putting out a new Apple product and a blockbuster Pixar movie in the same year. And yet, Musk was not done. He was also the chairman and largest shareholder of SolarCity, a booming solar energy company poised to file for an initial public offering. Musk had somehow delivered the biggest advances the space, automotive, and energy industries had seen in decades in what felt like one fell swoop. ([Location 380](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=380)) - Tags: [[blue]] - Most high-profile CEOs have handlers all around them. Musk mostly moves about Musk Land on his own. This is not the guy who slinks into the restaurant. It’s the guy who owns the joint and strides about with authority. Musk and I talked, as he made his way around the design studio’s main floor, inspecting prototype parts and vehicles. At each station, employees rushed up to Musk and disgorged information. He listened intently, processed it, and nodded when satisfied. The people moved away and Musk moved to the next information dump. ([Location 417](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=417)) - Tags: [[blue]] - Here was a guy who had taken much of the Silicon Valley ethic behind moving quickly and running organizations free of bureaucratic hierarchies and applied it to improving big, fantastic machines and chasing things that had the potential to be the real breakthroughs we’d been missing. ([Location 491](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=491)) - Tags: [[blue]] - Whenever possible, Musk’s companies would make things from scratch and try to rethink much that the aerospace, automotive, and solar industries had accepted as convention. ([Location 502](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=502)) - Tags: [[blue]] - While the “putting man on Mars” talk can strike some people as loopy, it gave Musk a unique rallying cry for his companies. It’s the sweeping goal that forms a unifying principle over everything he does. Employees at all three companies are well aware of this and well aware that they’re trying to achieve the impossible day in and day out. When Musk sets unrealistic goals, verbally abuses employees, and works them to the bone, it’s understood to be—on some level—part of the Mars agenda. Some employees love him for this. Others loathe him but remain oddly loyal out of respect for his drive and mission. What Musk has developed that so many of the entrepreneurs in Silicon Valley lack is a meaningful worldview. He’s the possessed genius on the grandest quest anyone has ever concocted. He’s less a CEO chasing riches than a general marshaling troops to secure victory. Where Mark Zuckerberg wants to help you share baby photos, Musk wants to . . . well . . . save the human race from self-imposed or accidental annihilation. ([Location 529](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=529)) - Tags: [[blue]] - When Musk came into the meeting room where I’d been waiting, I noted how impressive it was for so many people to turn up on a Saturday. Musk saw the situation in a different light, complaining that fewer and fewer people had been working weekends of late. “We’ve grown fucking soft,” Musk replied. “I was just going to send out an e-mail. We’re fucking soft.” ([Location 587](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=587)) - Tags: [[blue]] - one of the most influential books in his life: The Hitchhiker’s Guide to the Galaxy, by Douglas Adams. “He points out that one of the really tough things is figuring out what questions to ask,” Musk said. “Once you figure out the question, then the answer is relatively easy. I came to the conclusion that really we should aspire to increase the scope and scale of human consciousness in order to better understand what questions to ask.” The teenage Musk then arrived at his ultralogical mission statement. “The only thing that makes sense to do is strive for greater collective enlightenment,” he said. ([Location 637](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=637)) - Tags: [[blue]] - Part of this ability stemmed from the very visual way in which Musk’s mind worked. He could see images in his mind’s eye with a clarity and detail that we might associate today with an engineering drawing produced by computer software. “It seems as though the part of the brain that’s usually reserved for visual processing—the part that is used to process images coming in from my eyes—gets taken over by internal thought processes,” Musk said. “I can’t do this as much now because there are so many things demanding my attention but, as a kid, it happened a lot. That large part of your brain that’s used to handle incoming images gets used for internal thinking.” ([Location 740](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=740)) - Tags: [[blue]] - The most striking part of Elon’s character as a young boy was his compulsion to read. From a very young age, he seemed to have a book in his hands at all times. “It was not unusual for him to read ten hours a day,” said Kimbal. “If it was the weekend, he could go through two books in a day.” The family went on numerous shopping excursions in which they realized mid-trip that Elon had gone missing. Maye or Kimbal would pop into the nearest bookstore and find Elon somewhere near the back sitting on the floor and reading in one of his trancelike states. As Elon got older, he would take himself to the bookstore when school ended at 2 P.M. and stay there until about 6 P.M., when his parents returned home from work. He plowed through fiction books and then comics and then nonfiction titles. “Sometimes they kicked me out of the store, but usually not,” Elon said. He listed The Lord of the Rings, Isaac Asimov’s Foundation series, and Robert Heinlein’s The Moon Is a Harsh Mistress as some of his favorites, alongside The Hitchhiker’s Guide to the Galaxy. “At one point, I ran out of books to read at the school library and the neighborhood library,” Musk said. “This is maybe the third or fourth grade. I tried to convince the librarian to order books for me. So then, I started to read the Encyclopaedia Britannica. That was so helpful. You don’t know what you don’t know. You realize there are all these things out there.” Elon, in fact, churned through two sets of encyclopedias—a feat that did little to help him make friends. The boy had a photographic memory, and the encyclopedias turned him into a fact factory. He came off as a classic know-it-all. At the dinner table, Tosca would wonder aloud about the distance from Earth to the Moon. Elon would spit out the exact measurement at perigee and apogee. “If we had a question, Tosca would always say, ‘Just ask genius boy,’” Maye said. “We could ask him about anything. He just remembered it.” ([Location 750](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=750)) - Tags: [[blue]] - Errol also impressed the kids with his intellect and dealt out some practical lessons. “He was a talented engineer,” Elon said. “He knew how every physical object worked.” Both Elon and Kimbal were required to go to the sites of Errol’s engineering jobs and learn how to lay bricks, install plumbing, fit windows, and put in electrical wiring. ([Location 801](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=801)) - Tags: [[blue]] - “He would call very insistently,” she said. “You always knew it was Elon because the phone would never stop ringing. The man does not take no for an answer. You can’t blow him off. I do think of him as the Terminator. He locks his gaze on to something and says, ‘It shall be mine.’ Bit by bit, he won me over.” ([Location 984](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=984)) - Tags: [[blue]] - “When Elon gets into something, he develops just this different level of interest in it than other people. That is what differentiates Elon from the rest of humanity.” ([Location 1006](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=1006)) - Tags: [[blue]] - Musk will have the occasional vodka and Diet Coke, but he’s not a big drinker and does not really care for the taste of alcohol. ([Location 1032](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=1032)) - Tags: [[blue]] - The remarks from the professor were spot-on. Musk’s clear, concise writing is the work of a logician, moving from one point to the next with precision. What truly stood out, though, was Musk’s ability to master difficult physics concepts in the midst of actual business plans. Even then, he showed an unusual knack for being able to perceive a path from a scientific advance to a for-profit enterprise. ([Location 1052](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=1052)) - Tags: [[blue]] - he viewed the Internet, renewable energy, and space as the three areas that would undergo significant change in the years to come and as the markets where he could make a big impact. He vowed to pursue projects in all three. “I told all my ex-girlfriends and my ex-wife about these ideas,” he said. “It probably sounded like super-crazy talk.” ([Location 1061](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=1061)) - Tags: [[blue]] - There were people working at the office twenty-four hours a day, and they didn’t think it at all odd that Musk would turn up around 5 P.M. every evening to start his second job. “We brought him in to write some very menial low-level code,” said Peter Barrett, an Australian engineer who helped start the company. “He was completely unflappable. After a short while, I don’t think anyone was giving him any direction, and he ended up making what he wanted to make.” ([Location 1104](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=1104)) - Musk never seemed to leave the office. He slept, not unlike a dog, on a beanbag next to his desk. “Almost every day, I’d come in at seven thirty or eight A.M., and he’d be asleep right there on that bag,” Heilman said. “Maybe he showered on the weekends. I don’t know.” Musk asked those first employees of Zip2 to give him a kick when they arrived, and he’d wake up and get back to work. ([Location 1165](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=1165)) - While Musk had excelled as a self-taught coder, his skills weren’t nearly as polished as those of the new hires. They took one look at Zip2’s code and began rewriting the vast majority of the software. Musk bristled at some of their changes, but the computer scientists needed just a fraction of the lines of code that Musk used to get their jobs done. They had a knack for dividing software projects into chunks that could be altered and refined whereas Musk fell into the classic self-taught coder trap of writing what developers call hairballs—big, monolithic hunks of code that could go berserk for mysterious reasons. The engineers also brought a more refined working structure and realistic deadlines to the engineering group. This was a welcome change from Musk’s approach, which had been to set overly optimistic deadlines and then try to get engineers to work nonstop for days on end to meet the goals. “If you asked Elon how long it would take to do something, there was never anything in his mind that would take more than an hour,” Ambras said. “We came to interpret an hour as really taking a day or two and if Elon ever did say something would take a day, we allowed for a week or two weeks.” ([Location 1224](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=1224)) - fifteen minutes later, Musk became visible to the group. His face had turned purple, and sweat poured out of him, and he made it to the top. “I always think back to that ride. He wasn’t close to being in the condition needed for it,” Ambras said. “Anyone else would have quit or walked up their bike. As I watched him climb that final hundred feet with suffering all over his face, I thought, That’s Elon. Do or die but don’t give up.” ([Location 1256](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=1256)) - From that point on, Musk would fight to maintain control of his companies and stay CEO. “We were overwhelmed and just thought these guys must know what they’re doing,” Kimbal said. “But they’ didn’t. There was no vision once they took over. They were investors, and we got on well with them, but the vision had just disappeared from the company.” ([Location 1296](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=1296)) - “I had never really run a team of any sort before,” Musk said. “I’d never been a sports captain or a captain of anything or managed a single person. I had to think, Okay, what are the things that affect how a team functions. The first obvious assumption would be that other people will behave like you. But that’s not true. Even if they would like to behave like you, they don’t necessarily have all the assumptions or information that you have in your mind. So, if I know a certain set of things, and I talk to a replica of myself but only communicate half the information, you can’t expect that the replica would come to the same conclusion. You have to put yourself in a position where you say, ‘Well, how would this sound to them, knowing what they know?’” ([Location 1300](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=1300)) - Employees at Zip2 would go home at night, come back, and find that Musk had changed their work without talking to them, and Musk’s confrontational style did more harm than good. “Yeah, we had some very good software engineers at Zip2, but I mean, I could code way better than them. And I’d just go in and fix their fucking code,” Musk said. “I would be frustrated waiting for their stuff, so I’m going to go and fix your code and now it runs five times faster, you idiot. There was one guy who wrote a quantum mechanics equation, a quantum probability on the board, and he got it wrong. I’m like, ‘How can you write that?’ Then I corrected it for him. He hated me after that. Eventually, I realized, Okay, I might have fixed that thing but now I’ve made the person unproductive. It just wasn’t a good way to go about things.” ([Location 1305](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=1305)) - He sprinted up to his boss’s office and pitched the opportunity of a lifetime. “You can make billions of dollars for free,” he said. His boss told Musk to write up a report, which soon got passed up to the bank’s CEO, who promptly rejected the proposal, saying the bank had been burned on Brazilian and Argentinian debt before and didn’t want to mess with it again. “I tried to tell them that’s not the point,” Musk said. “The point is that it’s fucking backed by Uncle Sam. It doesn’t matter what the South Americans do. You cannot lose unless you think the U.S. Treasury is going to default. But they still didn’t do it, and I was stunned. Later in life, as I competed against the banks, I would think back to this moment, and it gave me confidence. All the bankers did was copy what everyone else did. If everyone else ran off a bloody cliff, they’d run right off a cliff with them. If there was a giant pile of gold sitting in the middle of the room and nobody was picking it up, they wouldn’t pick it up, either.” ([Location 1338](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=1338)) - “Money is low bandwidth,” he said, during a speech at Stanford University in 2003, to describe his thinking. “You don’t need some sort of big infrastructure improvement to do things with it. It’s really just an entry in a database.” ([Location 1350](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=1350)) - even by Silicon Valley’s high-risk standards, it was shocking to put so much of one’s newfound wealth into something as iffy as an online bank. All told, Musk invested about $12 million into X.com, leaving him, after taxes, with $4 million or so for personal use. “That’s part of what separates Elon from mere mortals,” said Ed Ho, the former Zip2 executive, who went on to cofound X.com. “He’s willing to take an insane amount of personal risk. When you do a deal like that, it either pays off or you end up in a bus shelter somewhere.” ([Location 1392](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=1392)) - Musk also began to hone his trademark style of entering an ultracomplex business and not letting the fact that he knew very little about the industry’s nuances bother him in the slightest. He had an inkling that the bankers were doing finance all wrong and that he could run the business better than everyone else. ([Location 1403](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=1403)) - These criticisms must be weighed against Musk’s track record. He demonstrated an innate ability to read people and technology trends at the inception of the consumer Web. While others tried to wrap their heads around the Internet’s implications, Musk had already set off on a purposeful plan of attack. He envisioned many of the early pieces of technology—directories, maps, sites that focused on vertical markets—that would become mainstays on the Web. Then, just as people became comfortable with buying things from Amazon.com and eBay, Musk made the great leap forward to full-fledged Internet banking. He would bring standard financial instruments online and then modernize the industry with a host of new concepts. He exhibited a deep insight into human nature that helped his companies pull off exceptional marketing, technology, and financial feats. Musk was already playing the entrepreneur game at the highest level and working the press and investors like few others could. Did he hype things up and rub people the wrong way? Absolutely—and with spectacular results. ([Location 1549](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=1549)) - Justine would just laugh, knowing Musk had lived a more extreme version of the Silicon Valley lifestyle than they could imagine. “I had friends who complained that their husbands came home at seven or eight,” she said. “Elon would come home at eleven and work some more. People didn’t always get the sacrifice he made in order to be where he was.” ([Location 1617](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=1617)) - “He was much more intense than some of the other millionaires,” Zubrin said. “He didn’t know a lot about space, but he had a scientific mind. He wanted to know exactly what was being planned in regards to Mars and what the significance would be.” ([Location 1651](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=1651)) - “We’re thinking, Yeah, you and whose fucking army,” Cantrell said. “But, Elon says, ‘No, I’m serious. I have this spreadsheet.’” Musk passed his laptop over to Griffin and Cantrell, and they were dumbfounded. The document detailed the costs of the materials needed to build, assemble, and launch a rocket. According to Musk’s calculations, he could undercut existing launch companies by building a modest-sized rocket that would cater to a part of the market that specialized in carrying smaller satellites and research payloads to space. The spreadsheet also laid out the hypothetical performance characteristics of the rocket in fairly impressive detail. “I said, ‘Elon, where did you get this?’” Cantrell said. ([Location 1763](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=1763)) - Musk had spent months studying the aerospace industry and the physics behind it. From Cantrell and others, he’d borrowed Rocket Propulsion Elements, Fundamentals of Astrodynamics, and Aerothermodynamics of Gas Turbine and Rocket Propulsion, along with several more seminal texts. Musk had reverted to his childhood state as a devourer of information and had emerged from this meditative process with the realization that rockets could and should be made much cheaper than what the Russians were offering. ([Location 1769](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=1769)) - Desks were interspersed around the factory so that Ivy League computer scientists and engineers designing the machines could sit with the welders and machinists building the hardware. This approach stood as SpaceX’s first major break with traditional aerospace companies that prefer to cordon different engineering groups off from each other and typically separate engineers and machinists by thousands of miles by placing their factories in locations where real estate and labor run cheap. ([Location 1840](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=1840)) - Hollman also found that creativity got him a long way. He discovered, for example, that changing the seals on some readily available car wash valves made them good enough to be used with rocket fuel. ([Location 1986](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=1986)) - Often the workers in Texas modified parts themselves using a mill and lathe that Mueller had brought out. ([Location 2011](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=2011)) - Some members of the Texas crew honed their skills to the point that they could build a test-worthy engine in three days. ([Location 2013](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=2013)) - What Musk would not tolerate were excuses or the lack of a clear plan of attack. Hollman was one of many engineers who arrived at this realization after facing one of Musk’s trademark grillings. “The worst call was the first one,” Hollman said. “Something had gone wrong, and Elon asked me how long it would take to be operational again, and I didn’t have an immediate answer. He said, ‘You need to. This is important to the company. Everything is riding on this. Why don’t you have an answer?’ He kept hitting me with pointed, direct questions. I thought it was more important to let him know quickly what happened, but I learned it was more important to have all the information.” ([Location 2028](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=2028)) - According to Musk, its first rocket would launch in “early 2004” from Vandenberg Air Force Base, carrying a satellite called TacSat-1 for the Department of Defense. With this goal looming, twelve-hour days, six days a week were considered the norm, although many people worked longer than that for extended periods of time. ([Location 2049](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=2049)) - Musk was always looking for brainy engineers who had not just done well at school but had done something exceptional with their talents. When he found someone good, Musk was relentless in courting him or her to come to SpaceX. ([Location 2083](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=2083)) - Doing this favor bought Spikes no special treatment. “SpaceX’s mail server crashed one time, and Elon word for word said, ‘Don’t ever fucking let that happen again,’” Spikes said. “He had a way of looking at you—a glare—and would keep looking at you until you understood him.” ([Location 2108](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=2108)) - Musk could be equally brisk with employees who were not hitting his standards. “He would often say, ‘The longer you wait to fire someone the longer it has been since you should have fired them,’” Spikes said. ([Location 2125](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=2125)) - At thirteen, Straubel found an old golf cart at the dump. He brought it back home and restored it to working condition, which required him to rebuild the electric motor. It seemed that Straubel was always taking something apart, sprucing it up, and putting it back together. All of this fit into the Straubel family’s do-it-yourself traditions. In the late 1890s Straubel’s great-grandfather started the Straubel Machine Company, which built one of the first internal combustion engines in the United States and used it to power boats. ([Location 2362](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=2362)) - Tags: [[blue]] - After flying through the hardest courses he could take, Straubel concluded that majoring in physics would not be for him. The advanced courses were too theoretical, and Straubel liked to get his hands dirty. He developed his own major called energy systems and engineering. “I wanted to take software and electricity and use it to control energy,” Straubel said. “It was computing combined with power electronics. I collected all the things I love doing in one place.” ([Location 2368](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=2368)) - Tags: [[blue]] - As they chatted late into the night, Straubel and the solar team kept fixating on one topic. They realized that lithium ion batteries—such as the ones in their car being fed by the sun—had gotten much better than most people realized. Many consumer electronics devices like laptops were running on so-called 18650 lithium ion batteries, which looked a lot like AA batteries and could be strung together. “We wondered what would happen if you put ten thousand of the battery cells together,” Straubel said. “We did the math and figured you could go almost one thousand miles. It was totally nerdy shit, and eventually everyone fell asleep, but the idea really stuck with me.” ([Location 2393](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=2393)) - Tags: [[blue]] - Straubel had spent years hanging out with the AC Propulsion crew and asked Tom Gage, the company’s president, to bring a tzero over for Musk to drive. Musk fell for the car. He saw its potential as a screaming-fast machine that could shift the perception of electric cars from boring and plodding to something aspirational. For months Musk offered to fund an effort to transform the kit car into a commercial vehicle but got rebuffed time and again. “It was a proof of concept and needed to be made real,” Straubel said. “I love the hell out of the AC Propulsion guys, but they were sort of hopeless at business and refused to do it. They kept trying to sell Elon on this car called the eBox that looked like shit, didn’t have good performance, and was just uninspiring.” ([Location 2418](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=2418)) - Tags: [[blue]] - Eberhard’s journey began with him building a technical model of the electric car on a spreadsheet. This let him tweak various components and see how they might affect the vehicle’s shape and performance. He could adjust the weight, number of batteries, resistance of the tires and body, and then get back answers on how many batteries it would take to power the various designs. The models made it clear that SUVs, which were very popular at the time, and things like delivery trucks were unlikely candidates. The technology seemed instead to favor a lighter-weight, high-end sports car, which would be fast, fun to drive, and have far better range than most people would expect. ([Location 2444](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=2444)) - Tags: [[blue]] - With an investment of $6.5 million, Musk had become the largest shareholder of Tesla and the chairman of the company. Musk would later wield his position of strength well while battling Eberhard for control of Tesla. “It was a mistake,” Eberhard said. “I wanted more investors. But, if I had to do it again, I would take his money. A bird in the hand, you know. We needed it.” ([Location 2494](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=2494)) - Tags: [[blue]] - What Tesla did have, ahead of anyone else, was the realization that 18650 lithium ion batteries had gotten really good and were going to keep getting better. ([Location 2508](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=2508)) - Tags: [[blue]] - Eberhard vowed—optimistically—to begin shipments of the Roadster in the middle of 2007, instead of early 2006 as once planned, and 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,” Eberhard told the paper.7 “They were relatively expensive, for people who could afford it.” ([Location 2600](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=2600)) - Tags: [[blue]] - the Tesla engineers brought their Silicon Valley attitude to the automakers’ traditional stomping grounds. There’s brake and traction testing track in northern Sweden near the Arctic Circle where cars get tuned on large plains of ice. It would be standard to run the car for three days or so, get the data, and return to company headquarters for many weeks of meetings about how to adjust the car. The whole process of tuning a car can take the entire winter. Tesla, by contrast, sent its engineers along with the Roadsters being tested and had them analyze the data on the spot. When something needed to be tweaked, the engineers would rewrite some code and send the car back on the ice. ([Location 2627](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=2627)) - Tags: [[blue]] - “The idea was to get to Asia, get things done fast and cheap, and make money on the car,” said Forrest North, one of the engineers sent to Thailand. “What we found out was that for really complicated things, you can do the work cheaper here and have less delays and less problems.” ([Location 2684](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=2684)) - Tags: [[blue]] - In just about every other case, Marks would be thanked for his decisive plan of action and saving the company’s investors from a big loss. But Musk had little interest in polishing up Tesla’s assets for the highest bidder. He’d started the company to put a dent in the automotive industry and force people to rethink electric cars. Instead of doing the fashionable Silicon Valley thing of “pivoting” toward a new idea or plan, Musk would dig in deeper. ([Location 2780](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=2780)) - Tags: [[blue]] - Tesla employees soon got to witness the same Musk that SpaceX employees had seen for years. When an issue like the Roadster’s faulty carbon-fiber body panels cropped up, Musk dealt with it directly. He flew to England in his jet to pick up some new manufacturing tools for the body panels and personally delivered them to a factory in France to ensure that the Roadster stayed on its production schedule. The days of people being ambiguous about the Roadster’s manufacturing costs were gone as well. “Elon got fired up and said we were going to do this intense cost-down program,” said Popple. “He gave a speech, saying we would work on Saturdays and Sundays and sleep under desks until it got done. Someone pushed back from the table and argued that everyone had been working so hard just to get the car done, and they were ready for a break and to see their families. Elon said, ‘I would tell those people they will get to see their families a lot when we go bankrupt.’ I was like, ‘Wow,’ but I got it. I had come out of a military culture, and you just have to make your objective happen.” Employees were required to meet at 7 A.M. every Thursday morning for bill-of-materials updates. They had to know the price of every part and have a cogent plan for getting parts cheaper. If the motor cost $6,500 a pop at the end of December, Musk wanted it to cost $3,800 by April. The costs were plotted and analyzed each month. “If you started falling behind, there was hell to pay,” Popple said. “Everyone could see it, and people lost their jobs when they didn’t deliver. Elon has a mind that’s a bit like a calculator. If you put a number on the projector that does not make sense, he will spot it. He doesn’t miss details.” ([Location 2803](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=2803)) - Tags: [[blue]] - “He can be incredibly intimidating at times but doesn’t have a real sense for just how imposing he can be,” said one former Tesla executive. “We’d have these meetings and take bets on who was going to get bloodied and bruised. If you told him that you made a particular choice because ‘it was the standard way things had always been done,’ he’d kick you out of a meeting fast. He’d say, ‘I never want to hear that phrase again. What we have to do is fucking hard and half-assing things won’t be tolerated.’ He just destroys you and, if you survive, he determines if he can trust you. He has to understand that you’re as crazy as he is.” This ethos filtered through the entire company, and everyone quickly understood that Musk meant business. ([Location 2824](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=2824)) - Tags: [[blue]] - Leading up to the third launch, Musk had been his usual ultra-involved self. Anyone at SpaceX who held the launch back went onto Musk’s critical-path shit list. Musk would hound the person responsible about the delays but, typically, he would also do everything in his power to help solve problems. “I was personally holding up the launch once and had to give Elon twice-daily updates about what was going on,” said Kevin Brogan. “But Elon would say, ‘There are five hundred people at this company. What do you need?’” ([Location 3115](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=3115)) - Tags: [[blue]] - “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.” ([Location 3267](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=3267)) - Tags: [[blue]] - Zip2, PayPal, Tesla, SolarCity—they are all expressions of Musk. SpaceX is Musk. Its foibles emanate directly from him, as do its successes. Part of this comes from Musk’s maniacal attention to detail and involvement in every SpaceX endeavor. 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. ([Location 3345](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=3345)) - Tags: [[blue]] - Musk’s demanding management style can only flourish because of the otherworldly—in a literal sense—aspirations of the company. ([Location 3349](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=3349)) - Tags: [[blue]] - Musk does not simply want to lower the cost of deploying satellites and resupplying the space station. He wants to lower the cost of launches to the point that it becomes economical and practical to fly thousands upon thousands of supply trips to Mars and start a colony. Musk wants to conquer the solar system, and, as it stands, there’s just one company where you can work if that sort of quest gets you out of bed in the morning. ([Location 3353](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=3353)) - Tags: [[blue]] - Musk has managed to take these negatives surrounding the aerospace business and turn them into gains for SpaceX. He’s presented the company as anything but another aerospace contractor. SpaceX is the hip, forward-thinking place that’s brought the perks of Silicon Valley—namely frozen yogurt, stock options, speedy decision making, and a flat corporate structure—to a staid industry. People who know Musk well tend to describe him more as a general than a CEO, and this is apt. He’s built an engineering army by having the pick of just about anyone in the business that SpaceX wants. ([Location 3363](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=3363)) - Tags: [[blue]] - When speaking to potential recruits, Singh tried to energize them and be up front about the demands of SpaceX and of Musk at the same time. “The recruiting pitch was SpaceX is special forces,” she said. “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 ([Location 3399](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=3399)) - SpaceX and Musk also seem to inspire an unusual level of loyalty. 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. Numerous people interviewed for this book decried the work hours, Musk’s blunt style, and his sometimes ludicrous expectations. 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. ([Location 3408](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=3408)) - the factory’s most Muskian element is the office space that has been built smack-dab in its center. This is a three-story glass structure with meeting rooms and desks that rises up between various welding and construction areas. It looks and feels bizarre to have a see-through office inside this hive of industry. Musk, though, wanted his engineers to watch what was going on with the machines at all times and to make sure they had to walk through the factory and talk to the technicians on the way to their desks. ([Location 3454](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=3454)) - The factory is a temple devoted to what SpaceX sees as its major weapon in the rocket-building game, in-house manufacturing. SpaceX manufactures between 80 percent and 90 percent of its rockets, engines, electronics, and other parts. It’s a strategy that flat-out dumbfounds SpaceX’s competitors, like United Launch Alliance, or ULA, which openly brags about depending on more than 1,200 suppliers to make its end products. ([Location 3458](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=3458)) - 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. Musk’s growth as a CEO and rocket expert occurred alongside SpaceX’s maturation as a company. At the start of the Falcon 1 journey, Musk was a forceful software executive trying to learn some basic things about a very different world. At Zip2 and PayPal, he felt comfortable standing up for his positions and directing teams of coders. At SpaceX, he had to pick things up on the job. Musk initially relied on textbooks to form the bulk of his rocketry knowledge. But as SpaceX hired one brilliant person after another, Musk realized he could tap into their stores of knowledge. He would trap an engineer in the SpaceX factory and set to work grilling him about a type of valve or specialized material. “I thought at first that he was challenging me to see if I knew my stuff,” said Kevin Brogan, one of the early engineers. “Then I realized he was trying to learn things. He would quiz you until 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. After a couple of years running SpaceX, Musk had turned into an aerospace expert on a level that few technology CEOs ever approach in their respective fields. “He was teaching us about the value of time, and we were teaching him about rocketry,” Brogan said. ([Location 3501](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=3501)) - 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. I don’t ever set intentionally impossible goals. But I’ve certainly always been optimistic on time frames. I’m trying to recalibrate to be a little more realistic. I don’t assume that it’s just like 100 of me or something like that. I mean, in the case of the early SpaceX days, it would have been just the lack of understanding of what it takes to develop a rocket. In that case I was off by, say, 200 percent. I think future programs might be off by anywhere from like 25 percent to 50 percent as opposed to 200 percent. 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. It’s different to say, “Well, what do you promise people?” Because you want to try to promise people something that includes schedule margin. But in order to achieve the external promised schedule, you’ve got to have an internal schedule that’s more aggressive than that. Sometimes you still miss the external schedule. SpaceX, by the way, is not alone here. Being late is par for the course in the aerospace industry. It’s not a question of if it’s late, it’s how late will the program be. I don’t think an aerospace program has been completed on time since bloody World War II. ([Location 3531](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=3531)) - 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. ([Location 3548](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=3548)) - One of my favorite things about Elon is his ability to make enormous decisions very quickly. That is still how it works today.” ([Location 3600](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=3600)) - 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. Lockheed Martin could never do anything like that.” ([Location 3619](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=3619)) - Elon is brilliant. He’s involved in just about everything. He understands everything. If he asks you a question, you learn very quickly not to go give him a gut reaction. He wants answers that get down to the fundamental laws of physics. One thing he understands really well is the physics of the rockets. He understands that like nobody else. The stuff I have seen him do in his head is crazy. He can get in discussions about flying a satellite and whether we can make the right orbit and deliver Dragon at the same time and solve all these equations in real time. 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. ([Location 3623](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=3623)) - SpaceX has test versions of all the hardware and electronics that go into a rocket laid out on metal tables. It has in effect replicated the innards of a rocket end to end in order to run thousands of flight simulations. Someone “launches” the rocket from a computer and then every piece of mechanical and computing hardware is monitored with sensors. An engineer can tell a valve to open, then check to see if it opened, how quickly it opened, and the level of current running to it. This testing apparatus lets SpaceX engineers practice ahead of launches and figure out how they would deal with all manner of anomalies. During the actual flights, SpaceX has people in the test facility who can replicate errors seen on Falcon or Dragon and make adjustments accordingly. SpaceX has made numerous changes on the fly with this system. In one case someone spotted an error in a software file in the hours right before a launch. SpaceX’s engineers changed the file, checked how it affected the test hardware, and, when no problems were detected, sent the file to the Falcon 9, waiting on the launchpad, all in less than thirty minutes. “NASA wasn’t used to this,” Watson said. “If something went wrong with the shuttle, everyone was just resigned to waiting three weeks before they could try and launch again.”12 ([Location 3630](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=3630)) - The guiding principle at SpaceX is to embrace your work and get stuff done. People who await guidance or detailed instructions languish. ([Location 3660](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=3660)) - the absolute worst thing that someone can do is inform Musk that what he’s asking is impossible. An employee could be telling Musk that there’s no way to get the cost on something like that actuator down to where he wants it or that there is simply not enough time to build a part by Musk’s deadline. “Elon will say, ‘Fine. You’re off the project, and I am now the CEO of the project. I will do your job and be CEO of two companies at the same time. I will deliver it,’” Brogan said. “What’s crazy is that Elon actually does it. Every time he’s fired someone and taken their job, he’s delivered on whatever the project was.” ([Location 3661](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=3661)) - We’re trying to have a really big impact on the space industry. If the rules are such that you can’t make progress, then you have to fight the rules. ([Location 3679](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=3679)) - “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?” ([Location 3681](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=3681)) - To make something like that vehicle happen, she said, the SpaceX employees needed to be effective and pushy. “Make sure your output is high,” Shotwell said. “If we’re throwing a bunch of shit in your way, you need to be mouthy about it. That’s not a quality that’s widely accepted elsewhere, but it is at SpaceX.” And, if that sounded harsh, so be it. ([Location 3784](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=3784)) - Tags: [[blue]] - the aerospace industry has historically had massive budgets to work with and tried to make the biggest, most reliable machines it could. The business has been tuned to strive for maximum performance, so that the aerospace contractors can say they met their requirements. That strategy makes sense if you’re trying to send up a $1 billion military satellite for the U.S. government and simply cannot afford for the payload to blow up. But on the whole, this approach stifles the pursuit of other endeavors. It leads to bloat and excess and a crippling of the commercial space industry. ([Location 3797](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=3797)) - Tags: [[blue]] - “We make our main combustion chambers, turbo pump, gas generators, injectors, and main valves,” Mueller said. “We have complete control. We have our own test site, while most of the other guys use government test sites. The labor hours are cut in half and so is the work around the materials. Four years ago, we could make two rockets a year and now we can make twenty a year.” ([Location 3906](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=3906)) - Tags: [[blue]] - It’s worth pausing for a moment to meditate on what Tesla had accomplished. Musk had set out to make an electric car that did not suffer from any compromises. He did that. Then, using a form of entrepreneurial judo, he upended the decades of criticisms against electric cars. The Model S was not just the best electric car; it was best car, period, and the car people desired. America had not seen a successful car company since Chrysler emerged in 1925. Silicon Valley had done little of note in the automotive industry. Musk had never run a car factory before and was considered arrogant and amateurish by Detroit. Yet, one year after the Model S went on sale, Tesla had posted a profit, hit $562 million in quarterly revenue, raised its sales forecast, and become as valuable as Mazda Motor. Elon Musk had built the automotive equivalent of the iPhone. And car executives in Detroit, Japan, and Germany had only their crappy ads to watch as they pondered how such a thing had occurred. ([Location 4030](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=4030)) - Tags: [[blue]] - Musk has tried to turn any snafu with a Tesla into an excuse to show off the company’s attention to service and dedication to pleasing the customer. More often than not, the strategy has worked. ([Location 4056](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=4056)) - Tags: [[blue]] - The technology that Tesla’s engineers displayed proved good enough to attract the attention of the big boys. Not long after the show, Daimler voiced some interest in seeing what an electric Mercedes A Class car might look and feel like. Daimler executives said they would visit Tesla in about a month to discuss this proposition in detail, and the Tesla engineers decided to blow them away by producing two prototype vehicles before the visit. When the Daimler executives saw what Tesla had done, they ordered four thousand of Tesla’s battery packs for a fleet of test vehicles in Germany. The Tesla team pulled off the same kind of feats for Toyota and won its business, too. ([Location 4307](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=4307)) - Tags: [[blue]] - The savvy engineers knew better than to go into a meeting and deliver bad news without some sort of alternative plan at the ready. “One of the scariest meetings was when we needed to ask Elon for an extra two weeks and more money to build out another version of the Model S,” Javidan said. “We put together a plan, stating how long things would take and what they would cost. We told him that if he wanted the car in thirty days it would require hiring some new people, and we presented him with a stack of resumes. You don’t tell Elon you can’t do something. That will get you kicked out of the room. You need everything lined up. After we presented the plan, he said, ‘Okay, thanks.’ Everyone was like, ‘Holy shit, he didn’t fire you.’” ([Location 4368](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=4368)) - Tags: [[blue]] - The idea of Musk as a design expert has long struck me as bizarre. He’s a physicist at heart and an engineer by demeanor. So much of who Musk is says that he should fall into that Silicon Valley stereotype of the schlubby nerd who would only know good design if he read about it in a textbook. The truth is that there might be some of that going on with Musk, and he’s turned it into an advantage. He’s very visual and can store things that others have deemed to look good away in his brain for recall at any time. This process has helped Musk develop a good eye, which he’s combined with his own sensibilities, while also refining his ability to put what he wants into words. The result is a confident, assertive perspective that does resonate with the tastes of consumers. Like Steve Jobs before him, Musk is able to think up things that consumers did not even know they wanted—the door handles, the giant touch-screen—and to envision a shared point of view for all of Tesla’s products and services. ([Location 4394](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=4394)) - Tags: [[blue]] - Musk, though, approaches everything from a Platonic perspective. As he sees it, all of the design and technology choices should be directed toward the goal of making a car as close to perfect as possible. To the extent that rival automakers haven’t, that’s what Musk is judging. 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. ([Location 4427](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=4427)) - Tags: [[blue]] - “Elon felt like it was the most important problem facing Tesla at the time and that’s always what he deals with and how he prioritizes. ([Location 4588](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=4588)) - Tags: [[blue]] - What Musk had done that the rival automakers missed or didn’t have the means to combat was turn Tesla into a lifestyle. It did not just sell someone a car. It sold them an image, a feeling they were tapping into the future, a relationship. ([Location 4631](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=4631)) - Tags: [[blue]] - This sort of relationship is hard to pull off if you don’t control as much of the lifestyle as possible. PC makers that farmed their software out to Microsoft, their chips to Intel, and their design to Asia could never make machines as beautiful and as complete as Apple’s. They also could not respond in time as Apple took this expertise to new areas and hooked people on its applications. ([Location 4634](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=4634)) - Tags: [[blue]] - Tesla also has the edge of having designed so many of the key components for its cars in-house, including the software running throughout the vehicle. “If Daimler wants to change the way a gauge looks, it has to contact a supplier half a world away and then wait for a series of approvals,” Javidan said. “It would take them a year to change the way the ‘P’ on the instrument panel looks. At Tesla, if Elon decides he wants a picture of a bunny rabbit on every gauge for Easter, he can have that done in a couple of hours.”* ([Location 4669](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=4669)) - Tags: [[blue]] - The guys like Straubel who had been at Tesla since the beginning are quick to remind people that the chance to build an awesome electric car had been there all along. “It’s not really like there was a rush to this idea, and we got there first,” Straubel said. “It is frequently forgotten in hindsight that people thought this was the shittiest business opportunity on the planet. The venture capitalists were all running for the hills.” What separated Tesla from the competition was the willingness to charge after its vision without compromise, a complete commitment to execute to Musk’s standards. ([Location 4679](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=4679)) - Tags: [[blue]] - The Rives decided to make buying into the solar proposition much simpler and formed a company called SolarCity in 2006. Unlike other companies, they would not manufacture their own solar panels. Instead they would buy them and then do just about everything else in-house. They built software for analyzing a customer’s current energy bill and the position of their house and the amount of sunlight it typically received to determine if solar made sense for the property. They built up their own teams to install the solar panels. And they created a financing system in which the customer did not need to pay anything up front for the panels. The consumer leased the panels over a number of years at a fixed monthly rate. Consumers got a lower bill overall, they were no longer subject to the constantly rising rates of typical utilities, and, if they sold their house, they could pass the contract to the new owner. At the end of the lease, the homeowner could also upgrade to new, more efficient panels. 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. ([Location 4720](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=4720)) - Tags: [[blue]] - “We had a blanket rule against investing in clean-tech companies for about a decade,” said Peter Thiel, the PayPal cofounder and venture capitalist at Founders Fund. “On the macro level, we were right because clean tech as a sector was quite bad. But on the micro level, it looks like Elon has the two most successful clean-tech companies in the U.S. We would rather explain his success as being a fluke. There’s the whole Iron Man thing in which he’s presented as a cartoonish businessman—this very unusual animal at the zoo. But there is now a degree to which you have to ask whether his success is an indictment on the rest of us who have been working on much more incremental things. To the extent that the world still doubts Elon, I think it’s a reflection on the insanity of the world and not on the supposed insanity of Elon.” ([Location 4742](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=4742)) - Tags: [[blue]] - SolarCity, like the rest of Musk’s ventures, did not represent a business opportunity so much as it represented a worldview. Musk had decided long ago—in his very rational manner—that solar made sense. Enough solar energy hits the Earth’s surface in about an hour to equal a year’s worth of worldwide energy consumption from all sources put together.20 Improvements in the efficiency of solar panels have been happening at a steady clip. If solar is destined to be mankind’s preferred energy source in the future, then this future ought to be brought about as quickly as possible. ([Location 4748](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=4748)) - Tags: [[blue]] - SolarCity is a key part of what can be thought of as the unified field theory of Musk. Each one of his businesses is interconnected in the short term and the long term. Tesla makes battery packs that SolarCity can then sell to end customers. SolarCity supplies Tesla’s charging stations with solar panels, helping Tesla to provide free recharging to its drivers. Newly minted Model S owners regularly opt to begin living the Musk Lifestyle and outfit their homes with solar panels. Tesla and SpaceX help each other as well. They exchange knowledge around materials, manufacturing techniques, and the intricacies of operating factories that build so much stuff from the ground up. ([Location 4775](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=4775)) - Tags: [[blue]] - “We don’t necessarily need all of the money for the Gigafactory right now, but I decided to raise it in advance because you never know when there will be some bloody meltdown,” Musk said. “There could be external factors or there could be some unexpected recall and then suddenly we need to raise money on top of dealing with that. I feel a bit like my grandmother. She lived through the Great Depression and some real hard times. Once you’ve been through that, it stays with you for a long time. I’m not sure it ever leaves really. So, I do feel joy now, but there’s still that nagging feeling that it might all go away. Even later in life when my grandmother knew there was really no possibility of her going hungry, she always had this thing about food. With Tesla, I decided to raise a huge amount of money just in case something terrible happens.” ([Location 4833](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=4833)) - Tags: [[blue]] - “The competitors are all sort of pooh-poohing the Gigafactory,” Musk said. “They think it’s a stupid idea, that the battery supplier should just go build something like that. But I know all the suppliers, and I can tell you that they don’t like the idea of spending several billion dollars on a battery factory. You’ve got a chicken-and-egg problem where the car companies are not going to commit to a giant volume because they’re not sure you can sell enough electric cars. So, I know we can’t get enough lithium ion batteries unless we build this bloody factory, and I know no one else is building this thing.” ([Location 4867](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=4867)) - Tags: [[blue]] - When he started SpaceX more than a decade ago, however, he had far less capital at his disposal. He didn’t have the fuck-you money of a Jeff Bezos, who handed his space company Blue Origin a kingly pile of cash and asked it to make Bezos’s dreams come true. If Musk wanted to get to Mars, he would have to earn it by building SpaceX into a real business. This all seems to have worked in Musk’s favor. SpaceX has learned to make cheap and effective rockets and to push the limits of aerospace technology. ([Location 4888](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=4888)) - Tags: [[blue]] - Tony Fadell, the former Apple executive credited with bringing the iPod and iPhone to market, has characterized the smartphone as representative of a type of super-cycle in which hardware and software have reached a critical point of maturity. Electronics are good and cheap, while software is more reliable and sophisticated. Their interplay is now resulting in science fiction–worthy ideas we were promised long ago becoming a reality. ([Location 5146](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=5146)) - Tags: [[blue]] - “I’ve learned that your intuition about things you don’t know that much about isn’t very good,” Page said. “The way Elon talks about this is that you always need to start with the first principles of a problem. What are the physics of it? How much time will it take? How much will it cost? How much cheaper can I make it? There’s this level of engineering and physics that you need to make judgments about what’s possible and interesting. Elon is unusual in that he knows that, and he also knows business and organization and leadership and governmental issues.” ([Location 5191](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=5191)) - Tags: [[blue]] - “I don’t think we’re doing a good job as a society deciding what things are really important to do,” 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. Engineers are usually trained in a very fixed area. When you’re able to think about all of these disciplines together, you kind of think differently and can dream of much crazier things and how they might work. I think that’s really an important thing for the world. That’s how we make progress.” ([Location 5214](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=5214)) - Tags: [[blue]] - After finishing my reporting and writing for this book, I had a chance to speak with some of Musk’s confidantes and employees in a more relaxed manner and bounce various ideas off of them. I’m more convinced than ever that Musk is, and has always been, a man on a quest, and that his brand of quest is far more fantastic and consuming than anything most of us will ever experience. It seems that he’s become almost addicted to expanding his ambitions and can’t quite stop himself from announcing things like the Hyperloop and the space Internet. I’m also more convinced than ever that Musk is a deeply emotional person who suffers and rejoices in an epic fashion. This side of him is likely obscured by the fact that he feels most deeply about his own humanity-altering quest and so has trouble recognizing the strong emotions of those around him. This tends to make Musk come off as aloof and hard. I would argue, however, that his brand of empathy is unique. He seems to feel for the human species as a whole without always wanting to consider the wants and needs of individuals. And it may well be the case that this is exactly the type of person it takes to make a freaking space Internet real. ([Location 5305](https://readwise.io/to_kindle?action=open&asin=B00KVI76ZS&location=5305)) - Tags: [[blue]]