'In any system, the existence of first principles is a fundamental proposition or assumption that cannot be omitted or violated.'
——Aristotle
'First principles' is the decision-making framework that Musk vigorously advocates. This way of thinking originates from physics, starting with analyzing the essence of things, gradually peeling away appearances, and fundamentally rethinking the meaning of things. Musk firmly believes that only by tracing back to the essence of things can we find the best ways to solve problems. Not only does he understand this deeply, but he also mentions it in various public occasions and promotes 'first principles' as the basis for decision-making within the company. This framework not only lays the foundation for his personal achievements but also provides us with profound thinking inspiration.
Application of first principles: Innovation from the ground up
In 2014, during his graduation speech at the USC Marshall School of Business, Musk shared five core thoughts on work and life, one of which was his decision-making approach: 'You may have heard me say to think about problems from a physics perspective; that's first principles. That is, don't use analogy reasoning. You break things down to their fundamental elements and then reason up from there; this is a good way to determine if something makes sense.' Musk emphasized that this kind of thinking is not easy, it consumes energy, but it is the fundamental method of innovation. He believes this method is extremely powerful, enabling us to break through intuition and convention, explore essence, and discover new possibilities.
In an interview at TED, Musk further explained: 'First principles reasoning is like peeling layers of an onion using physics to see beyond appearances and grasp the essence, and then reasoning up from the essence.' This method is mentally taxing but can lead to significant leaps in innovation. For example, in the vacuum capsule high-speed rail project, if one were to use empirical thinking, most people would choose to enhance existing train functions, whereas first principles guided Musk back to the essence: the core of a transport tool is to move goods from point A to point B. Therefore, he proposed a model of magnetic levitation and low vacuum, breaking through traditional transportation methods.
Solving the battery cost problem with first principles
Musk's electric vehicle project also benefited from the guidance of 'first principles'. The cost of batteries has always been a bottleneck for the commercialization of electric vehicles, with the market price of storage batteries reaching as high as $600 per kilowatt-hour. However, Musk questioned based on first principles: What are the raw materials that make up the batteries? What are the market prices of these raw materials? Eventually, it was discovered that the cost of building the battery directly from raw materials was only $80. This discovery completely overturned the price composition of batteries, making the commercialization of electric vehicles possible. This case highlights the role of first principles in breaking 'established facts': most people see the status quo as an unchanging limitation, while Musk reassesses from a physical level and arrives at groundbreaking conclusions.
Mars exploration and the 'idiot index'
In the early days of SpaceX, Musk's first goal was to build small rockets to send mice to Mars. However, he quickly realized that this approach would create unpredictable and awkward scenarios, leading him to turn to a more symbolic plan: 'Mars Oasis'. This plan involved sending a small greenhouse to Mars to return photos of green plants growing, in order to stimulate public enthusiasm for Mars exploration. However, when Musk attempted to purchase rockets from Russia, he discovered that the costs far exceeded expectations, prompting him to rethink the manufacturing methods for rockets.
He developed the concept of the 'idiot index' — the ratio of the finished product cost to the material cost. After breaking down the manufacturing of rockets, he found that the manufacturing cost of rockets was 50 times higher than the material cost, indicating huge potential for savings in materials. Through this thinking model, Musk concluded that if humanity wants to explore Mars, it must fundamentally improve rocket manufacturing technology. On the return flight, he detailed the material costs of manufacturing rockets and began exploring the feasibility of independent manufacturing. Within a few years, SpaceX achieved 70% self-manufacturing of rocket components, successfully breaking down the high-cost barriers of traditional aerospace manufacturing.
Tesla Cybertruck: Redefining pickup trucks with first principles
The development process of the Tesla Cybertruck once again demonstrates the power of 'first principles'. Musk and the design team initially used Chevrolet's Silverado truck as a design reference, but Musk suggested that he wanted a more exciting truck. Subsequently, the team studied creatively designed models in automotive history, including the Lotus Esprit from the 1977 Bond film, which Musk is fond of. However, traditional automotive design thinking clearly could not meet his needs.
Musk shifted his thinking to 'first principles': What are the core requirements for a pickup truck? How should materials be chosen? Under this line of thought, he proposed using stainless steel for the body, not only for its durability but also because this material could serve as the exoskeleton structure of the vehicle, giving the Cybertruck a unique appearance. Ultimately, Tesla chose a stainless steel alloy developed by SpaceX and applied for a patent for it. The exoskeleton design of the Cybertruck makes traditional pickups pale in comparison, achieving new heights in durability and futurism.
Application of first principles in cost control
Musk's keen attention to costs is reflected in many of his decisions. He often expresses dissatisfaction with the high quotes from external suppliers, advocating for the in-house production of as many components as possible. For example, SpaceX once needed a valve, and the supplier quoted $250,000. Musk deemed this price too high and requested the team to manufacture it themselves, which they quickly accomplished at a much lower cost. Additionally, SpaceX produced other components in-house, drawing inspiration from car wash systems and using custom valves for rocket fuel, significantly reducing costs.
During the rocket manufacturing process, Musk continually questioned various specifications required by external sources. He believes that all standards should be treated as suggestions, and only conditions constrained by the laws of physics are truly inviolable. At SpaceX, engineers must continuously examine the rationality of each design requirement, rather than just following existing standards. This essence-based thinking enables SpaceX to continually break through in terms of costs and efficiency, creating aerospace technologies that exceed conventional limits.
Conclusion
The 'first principles' that Musk advocates is not just a thinking tool, but also an innovative methodology. By deeply analyzing the essence of things, he is able to break out of traditional thinking frameworks and redefine the boundaries of technology. In many of Musk's achievements, the application of first principles has propelled transportation, electric vehicles, and rockets to unprecedented heights.
In this rapidly developing era, Musk's first principles thinking provides us with a way to trace back to fundamentals and break inherent concepts. It reminds us that whether in personal decision-making or industry transformation, only by seeing the essence beyond phenomena can we find pathways for breakthroughs. As Musk said, 'In any case, try to do it this way as much as possible.'