![First Principles: How to think like Tesla CEO Elon Musk [Video]](/_next/image?url=https%3A%2F%2Fd3t70bohx4vuj7.cloudfront.net%2FvXOMHS9QsE9UFGggHmfozbl-U-YZMs-QMojTDx2SBHE%2Fresize%3Afill%3A500%3A0%2Fgravity%3Asm%2FaHR0cDovL2Nkbi5zaG9waWZ5LmNvbS9zL2ZpbGVzLzEvMDE5Ni81MTcwL2ZpbGVzL2Vsb24tbXVzay10aGlua2luZ19sYXJnZV9ncmFuZGUucG5nP3Y9MTQ4MDI0ODQ2Mg&w=3840&q=75)
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"I tend to approach things from a physics framework. And physics teaches you to reason from first principles rather than by analogy. So I said, OK, let’s look at the first principles. What is a rocket made of? Aerospace-grade aluminum alloys, plus some titanium, copper, and carbon fiber. And then I asked, what is the value of those materials on the commodity market? It turned out that the materials cost of a rocket was around 2 percent of the typical price—which is a crazy ratio for a large mechanical product."
ELON MUSK
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The Two Types of Thinking
Comparison thinking: comes up with solutions based on pre-existing ideas. It is the way we normally think but it also limits the solutions to possible permutations of what already exists.
First principles thinking: starts free of preconceptions by studying the fundamentals of something and then working your way to a new thing. This helps you understand complex problems.
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