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🇺🇸🇨🇳 CHINA HAS ITS OWN "HYPERLOOP", ELON ADVISES AMERICA TO DO THE SAME Imagine blasting through a tube at 620 mph like you’re in a real-life video game, and in 9 minutes, you’re in another city. That’s what China’s cooking up, a maglev train in a low-vacuum tube that’s...

47,673 views • 11 months ago •via X (Twitter)

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Elon Musk on raising capital: “You have to show investors that you’re all in” “Tesla almost died in 2008,” Elon explains. “The recession was particularly difficult for car companies, and in the summer of 2008 we had to raise a big funding round. But because of the collapse in the financial system, that funding round didn’t happen and we had to piece together money to keep the company going from myself and existing investors. We were able to complete a financing round that was just barely enough to keep the company going, and we closed it on the last hour of the last day that it was possible to do so. It was Christmas Eve 2008 at 6pm . . . and we would have run out of money a few days after Christmas.” Elon continues: “So while things are going really well these days, I think it’s always important to remember that when you’re creating a company, there are very dark times and it’s about getting through those dark times. That’s the difference between success and failure.” He offers the following advice to aspiring founders: “A company is a group of people gathered together to create a product or service. That’s really all a company is. So you have to really believe in what you’re creating and know in your heart and mind that this is something that matters and that the world ought to have.” Believing whole-heartedly in what your building is especially important for raising capital, Elon argues: “I think it’s important to show investors that you’re all in. For example with Tesla, the fact that I invested all the money I had and was all in — I literally had to borrow money from friends to pay rent in 2008 — made a huge difference to investors and convinced them to invest in Tesla at the same time that GM and Chrysler were going bankrupt. I think you have to show them that you really care, that you’ve got skin in the game, and that you’ve given it everything you’ve got. Then the other people at the company will follow suit, as will investors. I did that at both SpaceX and Tesla and think that’s really fundamental.” Elon also urges founders to only hire people who are passionate about what you’re building: “When you hire people, what you’re really trying to do is convince people to join you in the endeavor. You should hire people who are also passionate about what you’re doing . . . they need to really care about what they’re doing. Then they will stay during the dark times.” Source: Montana Jobs Summit (Nov 2013)

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Andrej Karpathy explains what makes Elon Musk unique “I don’t think people appreciate how unique [Elon’s style] is. You read about it, but you don’t understand it—it’s hard to describe.” The first principle Karpathy — who led the computer vision team of Tesla Autopilot — has observed is that Musk likes small, strong, highly-technical teams: “At companies by default, teams grow and get large. Elon was always a force against growth… I would have to basically plead to hire people. And then the other thing is that at big companies it’s hard to get rid of low performers. Elon is very friendly by default to getting rid of low performers. I actually had to fight to keep people on the team because he would by default want to remove people… So keep a small, strong, highly technical team. No middle management that is non-technical for sure. That’s number one.” Number two is that Elon wants the office to be a vibrant place where everyone is working on exciting stuff: “He doesn’t like stagnation… He doesn’t like large meetings. He always encourages people to leave meetings if they’re not being useful. You actually do see this where it’s a large meeting and if you’re not contributing or learning, just walk out. This is fully encouraged… I think a lot of big companies pamper employees, but there’s much less of that. The culture of it is that you’re there to do your best technical work and there’s intensity.” Elon is also unusual in terms of how closely connected he is to the team: “Usually the CEO of a company is a remote person, five layers up, who only talks to their VPs… Normally people spend 99% of the time talking to the VPs. [Elon] spends maybe 50% of the time. And he just wants to talk to the engineers. If the team is small and strong, then engineers and the code are the source of truth… not some manager. And he wants to talk to them to understand the actual state of things and what should be done to improve it.” And lastly, Karpathy believes the extent to which Musk is involved day-to-day operations and removing company bottlenecks is not appreciated. He gives an example of engineers telling Elon they don’t have enough GPUs. As Karpathy explains, if Elon hears this twice he’ll get the person in charge of the GPU cluster on the phone. If NVIDIA is the bottleneck, he’ll get Jensen Huang on the phone. Video source: Sequoia Capital (2024)

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Elon Musk on raising capital: “You have to show investors that you’re all in” “Tesla almost died in 2008,” Elon explains. “The recession was particularly difficult for car companies, and in the summer of 2008 we had to raise a big funding round. But because of the collapse in the financial system, that funding round didn’t happen and we had to piece together money to keep the company going from myself and existing investors. We were able to complete a financing round that was just barely enough to keep the company going, and we closed it on the last hour of the last day that it was possible to do so. It was Christmas Eve 2008 at 6pm . . . and we would have run out of money a few days after Christmas.” Elon continues: “So while things are going really well these days, I think it’s always important to remember that when you’re creating a company, there are very dark times and it’s about getting through those dark times. That’s the difference between success and failure.” He offers the following advice to aspiring founders: “A company is a group of people gathered together to create a product or service. That’s really all a company is. So you have to really believe in what you’re creating and know in your heart and mind that this is something that matters and that the world ought to have.” Believing whole-heartedly in what your building is especially important for raising capital, Elon argues: “I think it’s important to show investors that you’re all in. For example with Tesla, the fact that I invested all the money I had and was all in — I literally had to borrow money from friends to pay rent in 2008 — made a huge difference to investors and convinced them to invest in Tesla at the same time that GM and Chrysler were going bankrupt. I think you have to show them that you really care, that you’ve got skin in the game, and that you’ve given it everything you’ve got. Then the other people at the company will follow suit, as will investors. I did that at both SpaceX and Tesla and think that’s really fundamental.” Elon also urges founders to only hire people who are passionate about what you’re building: “When you hire people, what you’re really trying to do is convince people to join you in the endeavor. You should hire people who are also passionate about what you’re doing . . . they need to really care about what they’re doing. Then they will stay during the dark times.”

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