The Success Formula

Musk’s approach can be written as a single equation of its key factors.

What the formula says:

• First-principles thinking, execution, and iteration multiply each other’s effects rather than adding.
• Vertical integration acts as an exponent, dramatically amplifying the other factors.
• Bureaucracy, tradition and complacency in the denominator can dramatically reduce success even when the other factors are strong.
• Shrinking the denominator (by deleting unnecessary processes) can matter as much as growing the numerator.

It explains why Musk’s companies post results that look mathematically impossible for their resources: they are running a different equation than their competitors.