I have a new personal hypothesis on Elon and his companies.
Elon's companies are not necessarily better run than other companies, and in some cases are worse run. Their success and Elon's cult status as an innovator is a result not of above-average managerial competence but of a willingness to unilaterally defy the Nash equilibria of industries.
Automobiles, space flight, and energy are industries that have been stagnant for some time. Stagnation of an industry means that it's found some kind of Nash equilibrium where it's not really in anyone's short term best interest to innovate much or otherwise deviate from the norm.
Elon doesn't give a rat's you-know-what and innovates anyway. Game theoretically he defects. This results in companies that are loss-making in the short term, but if successful they will define a new Nash equilibrium where they are positioned to lead or at least to have carved out a significant chunk.
Another way of putting this is that Elon is willing to try to cross fitness valleys between local maxima.
It's a gamble of course: can you reach the next fitness peak / equilibrium point before you run out of cash? This is very hard, and is why Nash equilibria / fitness local maxima are so stubborn.
Elon's companies are not necessarily better run than other companies, and in some cases are worse run. Their success and Elon's cult status as an innovator is a result not of above-average managerial competence but of a willingness to unilaterally defy the Nash equilibria of industries.
Automobiles, space flight, and energy are industries that have been stagnant for some time. Stagnation of an industry means that it's found some kind of Nash equilibrium where it's not really in anyone's short term best interest to innovate much or otherwise deviate from the norm.
Elon doesn't give a rat's you-know-what and innovates anyway. Game theoretically he defects. This results in companies that are loss-making in the short term, but if successful they will define a new Nash equilibrium where they are positioned to lead or at least to have carved out a significant chunk.
Another way of putting this is that Elon is willing to try to cross fitness valleys between local maxima.
It's a gamble of course: can you reach the next fitness peak / equilibrium point before you run out of cash? This is very hard, and is why Nash equilibria / fitness local maxima are so stubborn.