Elon Musk Relies On First Principles To Do The Unthinkable


Elon Musk’s SpaceX has been able to build a rocket for about 2% of the typical price!

What made such improvement possible?  Well, a thinking based on “first principles”.

When Elon was estimating the cost of building rockets, he did not simply use the market benchmarks. Because, making decisions using “commonly-accepted wisdom” is the antithesis of first principles thinking.

Instead, his team analyzed the necessary parts of a rocket, then researched firsthand the prices of the raw materials of parts. As a result, the SpaceX team was surprised to learn that they could build a rocket that cost about 2% of the typical price!

Do you use first-principles thinking?

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