#172 Elon Musk Early Days of SpaceX

In "Liftoff: Elon Musk and the Desperate Early Days That Launched SpaceX," author Eric Berger chronicles the tumultuous beginnings of SpaceX, detailing how Elon Musk's unwavering commitment to making space travel affordable laid the foundation for the company's success. Despite starting from scratch with a small team, SpaceX launched its first rocket within four years and reached orbit in six. The book, recommended by a subscriber named Joseph, draws parallels to other influential figures like restaurateur Danny Meyer and highlights how companies are essentially problem-solving machines. It emphasizes the importance of learning from the failures of predecessors, as Musk did by studying other rocket scientists and entrepreneurs like Andy Beal. The narrative also underscores Musk's unique approach to business, where speed, risk tolerance, and a hands-on management style enabled SpaceX to overcome financial struggles, bureaucratic hurdles, and technical challenges to ultimately achieve its goal of orbit, setting the stage for its future ambitions in space exploration.

• Elon Musk's vision for SpaceX was to build the world's first low-cost orbital rocket.
• The success of the Falcon One rocket was crucial for SpaceX's future endeavors, including Mars colonization.
• SpaceX started from scratch, with an empty factory and a few employees, and launched its first rocket in under six years.
• The early team at SpaceX, including those who have moved on, played a significant role in the company's formative years.

"All of the aspirin original talk about Mars would mean nothing if SpaceX could not put a relatively simple rocket like the Falcon one into orbit."

The quote highlights the importance of the Falcon One rocket's success as a foundational step for SpaceX's ambitious goals, including Mars colonization.

• The book "Liftoff" by Eric Berger was recommended by a subscriber and details the early struggles of SpaceX.
• It emphasizes the importance of problem-solving in business, drawing parallels with Danny Meyer and Stanley Marcus's philosophies.
• The book is seen as a valuable resource for understanding the problem-solving nature of companies, particularly in the context of SpaceX's early financial and technical hurdles.

"The best companies are those that distinguish themselves by solving problems most effectively."

This quote encapsulates the idea that successful businesses excel through their ability to solve problems, a theme central to the story of SpaceX's early days.

• Studying the early days of companies is fascinating and educational because it reveals the foundational work that leads to future success.
• The stories of Bill Gates and Steve Jobs are recommended for insights into the early days of Microsoft and Apple.
• The early struggles and problem-solving of companies provide valuable lessons for understanding what it takes to build a successful enterprise.

"Companies are just effective problem solving machines."

This quote simplifies the essence of what a company is, highlighting the importance of problem-solving in the journey of a company like SpaceX.

• Elon Musk's unique approach to job interviews is designed to gauge how candidates respond to being thrown off balance.
• Musk shares his vision for SpaceX during interviews, aiming to attract individuals who align with the company's ambitious goals.
• The quote about Musk's interview with Brian illustrates Musk's unusual but purposeful interview tactics to assess potential employees' reactions and fit with SpaceX's culture.

"Do you dye your hair?"

A peculiar interview question from Musk, showcasing his tendency to challenge interviewees in unconventional ways to see how they react under pressure.

• SpaceX operates at a unique pace, often moving faster than traditional aerospace companies.
• The company prioritizes hiring talented individuals and operates with a sense of urgency, often making quick job offers.
• The contrast in pace between SpaceX and legacy aerospace companies was striking to early employees.

"This company operated at its own speed."

This quote reflects SpaceX's distinct pace of operations, which is faster and more intense compared to traditional aerospace companies, emphasizing the company's focus on rapid progress and innovation.

• Elon Musk is known for studying the successes and failures of other entrepreneurs and companies to avoid repeating their mistakes.
• He has read biographies of notable figures and analyzed the experiences of previous rocket ventures, such as Andy Beal's failed company.
• Musk's relentless self-belief and his approach to learning from others' failures are key factors in SpaceX's development.

"He wanted to learn from their mistakes as to not repeat them."

Musk's strategy of studying others' failures is to extract lessons that can prevent SpaceX from encountering similar setbacks, demonstrating his analytical approach to problem-solving.

• Musk's goal for SpaceX was to lower the cost of space travel, making it more accessible and ultimately enabling multiplanetary human existence.
• He drew analogies between reusable rockets and commercial aviation to explain the need for cost reduction in space travel.
• Musk's logical approach to problem-solving is evident in his step-by-step plan to achieve SpaceX's long-term goals.

"The first steps towards solving the multiplanetary problem then was bringing down the cost of the launch."

This quote reveals Musk's logical progression in tackling the challenge of making space travel affordable, an essential step towards his vision of a multiplanetary human civilization.

• Musk's approach to building SpaceX involved doing more with less, using smaller teams and cost-effective resources.
• He incentivized early hires with significant stock options, aligning their interests with the company's success.
• The recruitment of a talented German engineer illustrates Musk's problem-solving skills in overcoming obstacles to secure key personnel.

"What it did intrigue me was trying to build a rocket with 200 people instead of 20,000."

The quote from a prospective SpaceX engineer reflects the appeal of Musk's vision to build rockets more efficiently and with a leaner team, contrasting with the practices of traditional aerospace companies.

• Elon Musk invested $100 million of his own money into SpaceX, mirroring Andy Beal's previous investment in aerospace.
• Les Schwab's tire business model, praised by Charlie Munger, influenced Musk's incentive approach at SpaceX, rewarding employees with profit sharing.
• Musk used stock options to incentivize employees to save the company money, aligning their interests with the company's success.
• A young engineer from Turkey was recruited to SpaceX, highlighting Musk's problem-solving skills and network (e.g., coordinating with Larry Page to transfer the engineer's wife to LA).
• SpaceX had a unique work culture with few rules, emphasizing collaboration, shared responsibilities, and Musk working alongside his team.
• Musk's decision-making was rapid and decisive, cutting through bureaucracy.
• The early SpaceX environment was characterized by a hands-on approach, with Musk personally involved in the details of the work.

"So he's like, okay, I'm putting 100 million of my money in this. That's one half of what Andy Beal did and failed, right?"

This quote emphasizes Musk's significant personal investment in SpaceX, showing his commitment and the high stakes involved, similar to Andy Beal's investment.

"Les Schwab can tell you better than me and Warren can, because this guy built an entire successful business just understanding the power of incentives."

The quote highlights the importance of incentives in business success, as exemplified by Les Schwab, and how this influenced Musk's approach at SpaceX.

"Musk therefore came into the job interview with Alton prepared, Musk told him. So I heard you don't want to move to LA, and one of the reasons is that your wife works for Google. Well, I just talked to Larry, and they're going to transfer your wife down to LA."

This quote illustrates Musk's proactive problem-solving and his willingness to leverage his network to recruit talent for SpaceX.

"No strong smells, okay? No flickering lights and no loud noises in the cubicle farm that they all shared."

This quote provides insight into the simple but strict work environment rules at the early days of SpaceX, aimed at maintaining a comfortable and focused workspace.

"No job was beneath us, Brian said. And that's also something that's mentioned over and over again that a lot of the early employees appreciate that Elon was not."

The quote reflects the egalitarian work culture at SpaceX, where hierarchy was downplayed and everyone, including Musk, was expected to contribute to any task as needed.

• Elon Musk's hiring process focused on finding brilliant and hardworking individuals, with no tolerance for non-performers.
• Musk personally met with every new hire through the first 3000 employees, indicating the importance he placed on assembling the right team.
• Steve Jobs' approach at Apple, influenced by his time at Pixar and historical figures like J. Robert Oppenheimer, was to build a team of 'A players' to avoid a 'bozo explosion'.
• Both Jobs and Musk prioritized hiring the best talent to achieve their ambitious goals.

"One of Musk's most valuable skills was his ability to determine whether someone would fit his mold."

The quote underscores Musk's knack for quickly assessing a candidate's suitability for SpaceX's demanding work environment.

"I can usually tell within 15 minutes, and I can for sure tell within a few days of working with them."

This quote from Musk reveals his confidence in his ability to evaluate an engineer's capabilities and fit for his company rapidly.

"My role model was J. Robert Oppenheimer. I read about the type of people he sought for the Adam bomb project."

Jobs' quote indicates his admiration for Oppenheimer's ability to assemble a top-tier team for a critical project, which inspired Jobs' hiring strategy at Apple.

• SpaceX's success is partly attributed to its iterative design approach, favoring rapid prototyping and adaptation over the traditional linear design method.
• Tom Mueller, a key SpaceX engineer, embodied the principle of 'default optimism', a mindset that Musk admired and sought in his team.
• The contrast between SpaceX's dynamic work environment and the monotonous roles at legacy aerospace companies is highlighted, with SpaceX offering a more engaging and varied experience.
• Elon Musk's preference for iterative design over linear design demonstrates his philosophy of continuous improvement and fast-paced development.

"The iterative approach begins with a goal and almost immediately leaps into concept designs, bench tests, and prototypes."

The quote explains SpaceX's engineering methodology, which emphasizes quick testing and learning from failures to refine designs.

"I think that's why Elon liked me, because it was very optimistic, Mueller said."

Mueller's quote reflects the positive attitude and resilience that Musk valued in his employees, which aligns with SpaceX's ambitious objectives.

"The bad news is that we had to change everything, Mueller said. The good news is I learned everything that can go wrong with turbo pumps and really how to fix them."

This quote from Mueller illustrates the opportunity to learn and improve that comes with facing and solving complex engineering problems.

• The book "Space Barons" is mentioned as a comparison of the differing philosophies of Jeff Bezos and Elon Musk in their space ventures.
• Musk's criticism of Bezos' engineering timeline for Blue Origin engines showcases his confidence in his own engineering and team management skills.
• The narrative suggests that it is too early to declare a definitive 'better approach' between SpaceX and Blue Origin, as both companies are still evolving.

"Musk laughed when told about Jeff Bezos timeline for engine development."

Musk's reaction to Bezos' engineering timeline reflects his skepticism about Bezos' approach and confidence in SpaceX's more aggressive timelines.

"Boastful? Yeah, maybe. But SpaceX built and tested its first rocket engine in less than three years, with Musk leading the way."

The author acknowledges Musk's bold claims but also points out the tangible achievements under his leadership, demonstrating SpaceX's rapid progress.

• SpaceX's emphasis on speed is exemplified by the story of a supplier named Reagan, who Musk quickly brought in-house to improve efficiency and reduce costs.
• The move to internalize machining operations resulted in cost savings, faster production, and better communication between engineers and manufacturers.

"Musk agreed to meet Reagan's asking price. He needed the help. Ten minutes later, he returned with a contract."

The quote highlights Musk's swift decision-making and willingness to act quickly to secure necessary resources for SpaceX.

"By bringing it in house, Musk essentially cut much of his manufacturing costs in half."

This quote explains the strategic advantage gained by SpaceX when they moved a key part of their supply chain in-house, improving both cost and process efficiency.

• SpaceX's work culture emphasized immediate communication and problem-solving.
• Employees had direct access to engineers, facilitating quick responses.
• Elon Musk's personal work style was clear and straightforward.
• Musk had zero tolerance for dishonesty and underperformance.
• The perception of Musk by early SpaceX employees was that of an intensely focused and intimidating leader.

"At SpaceX, he sat in the cubicle farm. So he's right there next to him. I'm communicating with you immediately." This quote illustrates the close physical proximity of employees at SpaceX, which allowed for direct and rapid communication.

"He can't stand a liar, and he hates a thief. And if you say you can do something, you better fucking do it." This quote emphasizes Musk's intolerance for dishonesty and the importance he places on accountability and follow-through.

"I've never met a man so laser-focused on his vision for what he needed, or, excuse me, for what he wanted." This quote reflects Musk's intense focus on achieving his goals, as observed by an early SpaceX employee.

• SpaceX initially planned to launch from an Air Force base in Santa Barbara, California.
• The Air Force was skeptical about SpaceX's success, as previous private rocket companies had failed.
• SpaceX faced resistance from the Air Force, which led to the search for alternative launch sites.
• The company had to build a launch site on a remote island in the Pacific, facing logistical challenges.
• SpaceX's determination to move quickly was hindered by the Air Force's reluctance.

"They originally thought, okay, we're going to shoot it off. There's this air force base. It's in Santa Barbara, California." This quote sets the scene for SpaceX's initial launch plans, which were later complicated by the Air Force's skepticism.

"The air force is eventually not going to let them ever shoot a rocket." This quote reveals the eventual denial by the Air Force for SpaceX to launch from their base, necessitating a change in plans.

"So they're going to wind up having to go out to this army air force, this army air base in the middle of the Pacific." This quote describes the pivot SpaceX had to make to an alternative launch site due to the Air Force's decision.

• SpaceX's philosophy was to question existing aerospace parts and suppliers.
• Musk's risk tolerance was a key factor in SpaceX's approach to innovation.
• Musk encouraged his team to learn from past failures and to continuously improve.
• SpaceX's management style was action-oriented, avoiding unnecessary planning.

"Musk taught his team to assess every part of the rocket with a discerning eye." This quote highlights Musk's insistence on scrutinizing every component for optimization, rather than relying on pre-existing parts.

"He didn't want to fail, but he wasn't afraid of it." This quote from Gwynne Shotwell reflects Musk's attitude towards risk and failure, which is seen as an opportunity to learn and progress.

• Elon Musk sued potential customers, including NASA, to ensure fair competition.
• Musk's lawsuits were aimed at breaking down cronyism and opening up bids for contracts.
• SpaceX's legal battles were aggressive but necessary for the company's survival and success.
• Musk's determination to fight for what he believed was right was evident in his legal strategy.

"I was told by many people that we should not protest. You've got a 90% chance that you're going to lose. You're going to make a potential customer angry." This quote captures the advice given to Musk against protesting NASA's contract process, which he ultimately decided to challenge.

"I had to protest." This quote succinctly demonstrates Musk's resolve to fight for fair competition, despite the risks involved.

• SpaceX's first three rocket launches failed, placing the company's future on the line.
• The fourth launch was a success and a turning point for the company.
• Musk's leadership involved providing historical context and moral support to his team.
• The failures were emotionally taxing but also led to important learning experiences.

"The rocket did not get far enough for the atmosphere to thin. Half a minute after it took off for the first time, the Merlin engine flickered out." This quote describes the failure of SpaceX's first rocket launch, highlighting the high stakes and challenges involved.

"Musk seemed to recognize the emotional toll that failure might inflict on some of his engineers." This quote reflects Musk's awareness of the impact of failure on his team and his approach to leadership during difficult times.

• SpaceX's story is one of overcoming skepticism, logistical hurdles, and failures.
• The company's success is attributed to Musk's unique vision, determination, and approach to problem-solving.
• SpaceX's impact on the aerospace industry is significant, changing the dynamics of space exploration and launch services.

"Elon Musk was not walking on eggshells on his way to orbit. He was breaking a lot of eggs." This quote metaphorically describes Musk's aggressive and unapologetic approach to establishing SpaceX in the aerospace industry.

• Experiencing failure is inevitable in any endeavor.
• Learning from others' failures can be inspiring and educational.
• Understanding how others have dealt with failure can prepare one for future challenges.
• The transcript discusses the importance of facing and overcoming failures as exemplified by the challenges faced by SpaceX.

"And so when you see other people and you're reading the experience of other people having to deal with, I think it is very inspiring."

This quote emphasizes the value of learning from others' experiences with failure and finding inspiration in their stories.

• SpaceX faced a significant failure with the Merlin engine leading to a rocket crash.
• The problem of sloshing was known but not prioritized as a top ten risk.
• Elon Musk's philosophy of "always go to eleven" reflects the need to consider risks beyond the most apparent ones.
• The transcript describes the specific technical challenges encountered by SpaceX and the company's approach to risk management.

"After the Merlin engine failed and the rocket tumbled toward the ocean, their excited shout and chatter died."

This quote describes the immediate reaction to the failure of the Merlin engine, highlighting the emotional impact of the incident on the team.

• Elon Musk acknowledges the difficulty of creating a reusable orbital rocket.
• Musk's candid communication style is both humorous and humanizing.
• The transcript provides insight into Musk's thought process and his recognition of the complexity of the engineering problems SpaceX aims to solve.

"One of the hardest engineering problems known to man is making a reusable Orbital rocket."

This quote from Musk underlines the enormous challenge SpaceX is tackling in striving to develop a reusable orbital rocket.

• A young SpaceX intern named Dunn demonstrated exceptional persistence and quick thinking.
• Dunn's actions during an emergency situation on a C-17 flight contributed significantly to SpaceX's success.
• The transcript highlights the importance of determination and the impact of individual contributions in critical moments.

"Dunn is the one that has to crawl in mid flight or like 25,000ft in the air mid flight into a crumpling rocket and wind up opening these vents."

This quote illustrates Dunn's crucial role in a high-pressure situation, showcasing how his persistence and quick thinking saved the mission.

• The third failure of SpaceX was a moment of deep introspection and doubt for the team.
• The chief engineer questioned his competence, and Elon Musk faced personal and financial challenges.
• The transcript conveys the emotional toll of failure and the resilience required to continue pursuing ambitious goals.

"Maybe they just weren't that good. Certainly, there could be no denying the company's dismal record."

This quote captures the self-doubt experienced by the SpaceX team following their third failed launch.

• Despite the third failure, Elon Musk rallied his team to attempt a fourth launch.
• The team had to overcome extreme time constraints and work under intense pressure.
• The transcript describes the pivotal moment when the company's future hung in the balance and the collective effort required to proceed.

"Get your shit together, go back to the island and launch it in six weeks."

This directive from Musk to his team exemplifies the urgency and determination to succeed despite previous failures.

• The fourth launch's success was a moment of intense relief and validation for SpaceX.
• The company's culture and the team's dedication were key factors in overcoming the odds.
• The transcript captures the emotional high of achieving success after a series of failures and the significance of that moment for SpaceX.

"We went absolutely wild. We were jumping around, hugging each other, screaming."

This quote conveys the overwhelming joy and sense of accomplishment felt by the SpaceX team after the successful fourth launch.

• Elon Musk's frustration with the lack of progress in space exploration fueled his commitment to Mars.
• The transcript ends with Musk's critique of the slow pace of space exploration and his unwavering passion for the mission to Mars.

"It's a goddamn outrage."

This quote from Musk expresses his strong feelings about the lack of progress in human space exploration and his desire to push the boundaries of what is possible.

• The host encourages listeners to support the podcast by purchasing books through provided links.
• Gift subscriptions are suggested as a way to benefit others while supporting the podcast.
• The transcript concludes with a call to action for listener support to ensure the continued production of the podcast.

"With your support, there'll be a thousand more to go, maybe 2000, and see how many we can do."

This quote signifies the host's dedication to the podcast and the role of listener support in its sustainability.