Episode #399 How Elon Works
Figure I would put my notes about this since I mentioned it. I really like the Algorithm he uses for all business problems. What do you think? Elon Musk’s War Manual: Stories and Lessons from a Relentless Builder You think you know Elon Musk. You probably don’t. Strip away the Twitter noise, the political chaos, the tabloid relationships. What’s left? A 30-year masterclass in building impossible things. Walter Isaacson’s 615-page biography isn’t just a story about rockets and cars. It’s a playbook written in blood, sweat, and bankruptcies. Here’s what matters: Elon has used the same handful of principles across seven companies for three decades. These aren’t theories. They’re battle-tested ideas that built a trillion-dollar empire. And if you pay attention, some of them might work for you too. The $307 Million Education At 27, Elon sold his first company, Zip2, for $307 million. He walked away with $22 million. Most people would buy an island. Elon did something different. “I could go buy an island, but I’m much more interested in trying to build and create a new company,” he said. He put almost all of it into his next venture. The real payoff wasn’t the money—it was proving he could build something real. Lessons: - Money is fuel, not the finish line - Your next game matters more than your last score - Build companies that solve problems, not bank accounts Key Quote: “I’m going to put almost all of my winnings back into a new game. The real payoff is the sense of satisfaction in having created a company.” The Idiot Index (This is made me smile) When Elon started building rockets, he realized something insane: finished rockets cost 50 times more than their raw materials. Carbon fiber, metal, fuel—the ingredients were cheap. The manufacturing process was the problem. He created the “Idiot Index”—a calculation of how much you’re overpaying compared to material costs. If the index is high, you’re an idiot. A supplier quoted $120,000 for a part. Elon said it was no more complex than a garage door opener. His engineer made it for $5,000.