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Have you ever wondered how Elon Musk comes up with new ideas?In this video, I’m going to take a deeper look at how Elon thinks about new product ideas.

And by doing so, I think it’s going to make us better thinkers and innovators.

This past week, Elon was interviewed at the Satellite 2020 conference.

He was asked about what advice he would give to his younger self.

Elon talks about the importance of having a simple design

If too complex often wrong

One great example of simplifying design is the Boring Company

Original design was a car carrier on a track

https://www.youtube.com/watch?v=u5V_VzRrSBI

Then a Model S/X directly on a track with cushions in front

https://www.youtube.com/watch?v=WQn-D-i5lyM

Then a smooth road, rely on Autopilot

https://www.youtube.com/watch?v=VcMedyfcpvQ

Easy to get stuck on the solution but when solving a problem, the solution is variable.

With the Model 3, Elon got caught up in a complex factory design. But they managed to pivot into a simpler design and this allowed them to build and ramp their China factory much quicker.

Besides simplifying the design, Elon shared another very important principle:

Don’t optimize something that shouldn’t exist.

Don’t get stuck in status quo. Maybe it was ok for a different time.

But things change rapidly - New technology, new software, new materials, new methods.

Is there any significantly better way to do this?

Examples of companies optimizing something that shouldn’t exist

1. Blackberry - optimizing keyboard and handset

Apple - didn’t focus too much on optimizing iPod, but on solving different problem… internet in your pocket

2. Yellow pages

3. Auto makers - more efficient ICE engines.

Solar Roof is a great example of not optimizing something that shouldn’t exist.

Disclaimer: All content on this channel is for informational and educational purposes only and should not be construed as professional financial advice. Should you need such advice, consult a licensed financial or tax advisor. No guarantee is given regarding the accuracy of information on this channel. Author is long TSLA at time of original video publish date.

Tags: Tesla, TSLA, Elon Musk, Model 3, Model Y, Cybertruck, Investing

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