How To Think Like Elon Musk

The First Principles method of solving problems involves reducing complex subjects to their simplest elements. Originally utilized in physics, it is known for its ability to uncover the essence of any problem by removing all biases and conventions attached to it.

The concept of reasoning from first principles has shaped public discourse for millennia. While Aristotle defined First Principles as “the foundation from which knowledge is derived,” the Roman philosopher, Socrates, developed the Socratic Method, which involves asking deep probing questions to clarify an issue. With this rigorous questioning technique, foundational principles akin to First Principles thinking are established. Similarly, French scientist, René Descartes, followed a similar method called Cartesian Doubt – a strategy of doubting everything to uncover undeniable truths.

Musk

In recent years, Elon Musk has sparked a resurgence in First Principle thinking popularity. Among the world’s wealthiest individuals, Musk is responsible for driving innovation at Tesla, SpaceX, The Boring Company, SolarCity, Neuralink, and Twitter (X.com).

First Principles thinking reveals the essence of any problem by eliminating assumptions and biases. By focusing on fundamentals rather than conventional wisdom, we can create breakthrough innovations and foster creativity. In order for Musk to be successful at SpaceX and Tesla, he has relied heavily on this approach. Elon advocates for returning to the basics instead of reasoning by analogy, which can lead to sub-optimal solutions. Using this strategy enhances creativity, operational efficiency, and drives significant industry advancements.

The following quote from Elon in Tim Urban’s blog post titled, “The Cook and the Chef: Musk’s Secret Sauce,” is insightful and captures the essence of Elon’s First Principle thinking:

“I think generally people’s thinking process is too bound by convention or analogy to prior experiences. It’s rare that people try to think of something on a First Principle basis. They’ll say, ‘We’ll do that because it’s always been done that way,’ or, ‘well, nobody’s ever done that, so it must not be good.’ But that’s just a ridiculous way to think. You have to build up the reasoning from the ground up – “from the first principles – is the phrase that’s used in physics.”

A further quotation from Tim Urban can be found in Polina Marinova Pompliano’s new book, Hidden Genius. She summarizes Urban’s First Principle anecdote regarding a chef and a cook as follows:

“Here’s how Urban characterized the difference between the way Musk thinks and the way most people think. It’s the difference between a chef and a cook. ‘When I say chef, I don’t mean any ordinary chef,’ Urban writes. ‘I mean the trailblazing chef – the kind of chef who invents recipes. And everyone else who enters a kitchen – all those who follow recipes – is a cook.’ The chef reasons from first principles, whereas the cook works off some version of a recipe that’s already out there.”

The chef has the confidence to experiment and create something new, while the cook sticks to the tried-and-true methods. The chef is the visionary, while the cook is the technician.

Tesla: Redefining Battery Costs

Elon Musk’s application of First Principles thinking is especially pivotal to the success of SpaceX and Tesla. It’s evident that without this approach, these ventures may not have thrived. By grounding his strategy in basic truths, Musk was able to redefine rocket ship and electric vehicle technology.

In a conversation with tech entrepreneur, Kevin Rose, Elon Musk elaborated on Tesla’s approach to battery costs using First Principles thinking:

“Somebody could say, ‘battery packs are really expensive, and that’s just the way they will always be. Historically, it costs $600 per kilowatt hour. So, it’s not going to be much better than that in the future. No, you have to first ask: ‘what are batteries made of?’ The First Principles are what are the material constituents of the battery? What is the spot market value of the material constituents? Ok, it’s got cobalt, nickel, aluminum, carbon, and some polymers for separation. If you break that down on a material basis and purchase them on the market… it’s like, oh, geez, it’s $80 per kilowatt-hour”

SpaceX: The “Idiot Index”

At SpaceX, Elon Musk applied this distinctive, First Principles, approach to redefine space travel. He challenged the high costs traditionally associated with rockets. By deconstructing these expenses, he identified reusable rockets as essential to reducing costs. Musk then embarked upon a complete redesign of rockets, focusing on fundamental components, which drastically reduced production costs.

In Walter Isaacson’s biography, Elon Musk, Musk’s approach is vividly described. He ruminates on the exorbitant prices the Russians demanded for a rocket engine, saying:

“As he stewed about the absurd price the Russian wanted to charge (for a rocket engine), he employed some first principle thinking, drilling down to the basic physics of the situation and building up from there. This led him to develop what he called the “idiot index,” which calculated how much more costly a finished product was than the cost of its basic materials. If a product had a high “idiot index,” its cost could be reduced significantly by devising more efficient manufacturing techniques.”

Furthermore, Elon Musk’s methodical approach was also recognized by Larry Page, co-founder of Google. In his book, also titled, Elon Musk, Ashlee Vance captures Page’s insights:

“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 judgements 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.”

First Principles: Think Like a Scientist

Elon Musk’s approach to innovation is deeply rooted in physics, demonstrating a mindset that emphasizes analytical clarity and foundational reasoning. This method is advocated by Musk, who stated during a TED Talk, “Well, I do think there’s a good framework. It is physics. You know, the sort of First Principle reasoning. Generally, I think there are… what I mean by that is, boil things down to their fundamental truths and reason up from there, as opposed to reasoning by analogy.” The scientific approach he has utilized, which contrasts sharply with reasoning by analogy – or simply tweaking what has already been done – has been instrumental in his success.

Musk’s endorsement of First Principles thinking extends beyond theory and finds strong analytical support in academic research. Adam Grant, Professor at Wharton Business School, explores the benefits of adopting a scientific mindset in his best-selling book, Think Again. Grant emphasizes that being a scientist is more than just a profession, but a way of thinking that is distinct from other careers. His question is whether people in other fields can be trained to think like scientists and whether this leads to better decisions.

As Grant’s research concluded, entrepreneurs who adopt a scientific thinking change directions (or “pivot”) more than twice as often as their peers. The key to this approach is to be actively open-minded, not just reactively. Rather than justifying why they are right, entrepreneurs trained in scientific thinking search for reasons why they might be wrong. A willingness to revise views in light of new information emphasizes the strength of thinking scientifically with First Principle thinking.