Elon Musk’s Genius: Understanding the Cost of a Screw and the Value of a Photo



Last evening, Elon Musk inspired the audience D. It is difficult to overstate the extent and breadth of his aspirations or the effects of his launch ups PayPal, Tesla, also SpaceX on automobiles, payments and space.

Behind the urge to follow great men like Musk talk regarding their viewpoints is a expect to obtain a pearl of wisdom, some insight. Yesterday evening , I came away with two of these .

First, when the inevitable question came along along asking Musk to compare his own plans together with all the creations and ambitions within sharing software, Musk responded in another way:

He explained that there are many ways of creating value. Photo sharing apps create a small quantity of significance for a number of individuals. Aggregating that small value will create significant businesses.

Second, when asked about the origins of SpaceX, to starting the company his very initial step was supposed to know the cost structure of rocket businesses. He and his team calculated the cost. They found that the carbon and ceramic fiber and gas represented only about 2% of the complete cost of starting a rocket.  In his voice, the business has to be doing something silly to drive costs to their current order of size. In other words, there was an chance.

There is one thread common to both of these illustrations: Musk understands the specifics, the small things – the cost of titanium screws and also the marginal value of a shared photo, and the way they relate to the overall picture.

His ability to think in programs, understanding how ecosystems react and respond to regulation and subsidies in the instance of both Tesla and oil and gas businesses, and the way PayPal fit into the world of obligations and the way the expenses of screws and fuel fit into the overall cost of this rocket is exactly what I respect about Elon Musk.

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