A great video on how Musk did it to have much lower costs in Tesla and in SpaceX.
In particular, in the space industry, there were too many suppliers and suppliers of suppliers. So the cost would dramatically rise along the supply chain. Moreover, the price was not a problem as a government which needs a rocket would build it anyway. This is what they call a price-inelastic market.
So the intuition of Musk to build the components of a rocket internally yielded at much lower costs. This combined with reusable rockets really revolutionized the industry.
The same approach is more or less adopted for Tesla in particular for the electric car's battery. Previously Tesla used to buy it from Panasonic but the vision of Musk was that of building it internally with a 50% reduced cost.
All these ideas are what they call Musk economics!
Another characteristic aspect of Musk economics is that he wants to keep the production in US. Maybe that's why Trump likes him so much!
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Thanks :-)
Thanks for this awesome post, @alketcecaj. I did not see this video before and I was surprised by some of the figures that I did not see in many of the articles and books I've read about this topic. I love the innovation Musk brings and I know it will change the world a lot more in the future. Thanks for spreading the word!