Category: Musk, Elon

Musk Confronts or Ignores Regulators Who Block Innovation

(p. A1) He’s become one of the world’s most successful entrepreneurs by reinventing industries from electric cars to rockets. Along the way, he’s also rewritten the rules of engagement with U.S. regulators.

Elon Musk has emerged a winner in a series of run-ins with a range of regulatory agencies that have watched as he sidestepped rules or ignored enforcement attempts. He has overmatched an alphabet-soup of agencies that oversee financial markets and safety in the workplace, on highways and in space flight.

Most chief executives try to avoid regulators—or at least stay in their good graces. Many accused of overstepping have paid fines or agreed to make improvements.

Mr. Musk, revered by some investors for his iconoclastic approach, has taken a different tack on his way to becoming one of the richest men in the world, not letting regulations hinder his goals to revolutionize transportation with Tesla Inc.’s electric cars or colonize Mars using SpaceX rockets.

Federal agencies say he’s breaking the rules and endangering people. Mr. Musk (p. A10) says they’re holding back progress.

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The Federal Aviation Administration criticized SpaceX for launching a rocket in December [2020] without a proper FAA license. Mr. Musk ridiculed the FAA space division in a tweet as “fundamentally broken.”

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When asked to comment on the specifics of this article, Mr. Musk replied with a “poop” emoji. Asked to elaborate, Mr. Musk declined to provide any input on his interactions with federal agencies or his view toward regulation. In a tweet Tuesday, Mr. Musk said he agrees with regulators “99.9% of the time.” He added that when they disagree, it “is almost always due to new technologies that past regulations didn’t anticipate.”

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After the FAA delayed a January [2021] test launch, Mr. Musk accused the agency of holding back progress and argued that its regulations were outdated. “Their rules are meant for a handful of expendable launches per year from a few government facilities,” he tweeted on Jan. 28. “Under those rules, humanity will never get to Mars.”

. . .

The National Labor Relations Board ruled in March that Tesla had violated U.S. labor law by hindering unionization and ordered Mr. Musk to delete a tweet discouraging employees from unionizing. Tesla this month appealed the decision, saying the NLRB’s ruling was “contrary to law.”

Mr. Musk’s tweet remains online. The NLRB declined to comment.

For the full story, see:

Ben Foldy, Rebecca Elliott, Susan Pulliam. “Elon Musk’s War With Regulators.” The Wall Street Journal (Thursday, April 29, 2021): A1 & A10.

(Note: ellipses, and bracketed years, added.)

(Note: the online version of the story has the date April 28, 2021, and has the title “Elon Musk’s War on Regulators.”)

SpaceX Is the Wikipedia of Space: Launch Quickly and Upgrade Quickly

SpaceX has a Wikipedia approach to space. Launch quickly; correct and upgrade quickly. This is similar to Google’s approach to hard drives: buy cheap, unreliable ones, have a lot of backups, and be ready to replace a lot of hard drives. Also the ethernet’s approach to packets: be ready to lose them and re-send. I argue these examples illustrate redundancy, and that we can and should have a robustly redundant labor market.

(p. B1) The Starlink project, owned by Mr. Musk’s Space Exploration Technologies Corp. or SpaceX, is authorized to send some 12,000 satellites into orbit to beam superfast internet to every corner of the Earth. It has sought permission for another 30,000.

Now, rival companies such as Viasat Inc., OneWeb Global Ltd., Hughes Network Systems and Boeing Co. are challenging Starlink’s space race in front of regulators in the U.S. and Europe. Some complain that Mr. Musk’s satellites are blocking their own devices’ signals and have physically endangered their fleets.

. . .

The critics’ main argument is that Mr. Musk’s launch-first, upgrade-later principle, which made his Tesla Inc. TSLA +1.27% electric car company a pioneer, gives priority to speed over quality, filling Earth’s already crowded orbit with satellites that may need fixing after they launch.

“SpaceX has a gung-ho approach to space,” said Chris McLaughlin, government affairs chief for rival OneWeb. “Every one of our satellites is like a Ford Focus—it does the same thing, it gets tested, it works—while Starlink satellites are like Teslas: They launch them and then they have to upgrade and fix them, or even replace them alto-(p. B2)gether,” Mr. McLaughlin said.

For the full story, see:

Bojan Pancevski. “Rivals of SpaceX’s Satellites Cite Risk.” The Wall Street Journal (Tuesday, April 20, 2021): B1 & B2.

(Note: ellipsis added.)

(Note: the online version of the story has the date April 19, 2021, and has the title “Elon Musk’s Satellite Internet Project Is Too Risky, Rivals Say.”)

Clubhouse Tests the Market for Live Unfiltered Talk

(p. B1) Clubhouse and other audio-based social networks are attracting users with a simple appeal: hearing another human voice.

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(p. B4) Clubhouse could be successful in building paid features because of its air of exclusivity—an invitation is required to join, but easy to procure—and the high-profile names coming to converse on the platform, including Facebook Chief Executive Officer Mark Zuckerberg, Tesla Inc. CEO Elon Musk, actor Lindsay Lohan and Brad Parscale, one-time campaign manager for former President Donald Trump.

. . .  Mr. Musk’s appearance had in part helped drive an influx of China-based users to Clubhouse, where they participated in a rare outpouring of free debate on topics that are taboo in China, until Beijing’s censors this week appeared to cut off access to the app.

Any Clubhouse user can create a virtual room with designated speakers to discuss any topic, for example the merits of bitcoin, startup-building advice, stand-up comedy, or recovery from childhood trauma. Poetry readings, bedtime serenades and guided meditation are on offer. A number of the conversations are about Clubhouse itself, with users dissecting the app, lamenting its shortcomings and complaining about other users.

Tech executives have questioned the staying power of an app with so few guardrails for the length and quality of conversation and no way to filter out idle chatter.

. . .

As with seemingly all online communities, the challenge of moderation looms. Live audio is tougher to moderate than text or images, . . .

For the full story, see:

Heather Somerville. “Social Networks With A Voice Draw Users.” The Wall Street Journal (Friday, Feb 12, 2021): B1 & B4.

(Note: ellipses added.)

(Note: the online version of the story has the date February 11, 2021, and has the title “Clubhouse Wins Over Hollywood, Tech, Even Elon Musk. Are You Next?”)

Musk Says Under F.A.A. Rules “Humanity Will Never Get to Mars”

(p. B5) Last week, SpaceX and government regulators seemed to be in a strange standoff. SpaceX had filled the propellant tanks of this prototype of Starship — its ninth one — and looked ready to launch. But then the rocket stayed on the ground when no approval from the F.A.A. arrived.

Mr. Musk expressed frustration on Twitter, describing the part of the F.A.A. that oversees SpaceX as “fundamentally broken.”

Mr. Musk wrote, “Their rules are meant for a handful of expendable launches per year from a few government facilities. Under those rules, humanity will never get to Mars.”

Late on Monday [Feb. 1, 2021], the F.A.A. gave permission for Tuesday’s launch, but then revealed that the December launch had occurred without the agency’s approval. SpaceX had requested a waiver to conduct that flight even though it had not shown that a pressure wave that could be generated by an explosion during the test would not pose a danger to the public. The F.A.A. denied the request. SpaceX defied the ruling and launched anyway.

Even if Starship had landed perfectly, launching it without approval was a violation of the company’s license.

For the full story, see:

Chang, Kenneth. “SpaceX’s Starship Mars Rocket Prototype Again Crashes After a Test Launch.” The New York Times (Weds., Feb. 3, 2021): B5.

(Note: bracketed date added.)

(Note: the online version of the story has the date Feb. 2, 2021, and has the title “SpaceX’s Prototype Mars Rocket Crashes in Test Flight.”)

Musk Pivots Tesla to Be Less Automated and to Do More In-House

(p. B2) Mr. Musk became deeply interested in improving and automating the car-building process after painful struggles to increase production of the company’s first SUV, the Model X, in 2016.

In a rare public acknowledgment of error, Mr. Musk conceded in 2018 that he went overboard with his automation attempts for the Model 3. That mistake snarled the company’s efforts to ramp up production in 2017 and 2018—a dark period that shook investor confidence in his ability to execute on his vision for Tesla to evolve from a niche luxury brand into a mainstream electric-car company.

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The factory expansion is a further acknowledgment by Tesla that some of its founding assumptions were off. The original business plan for the company, founded in 2003, was to create a car company resembling more of a personal technology company, rather than a traditional auto maker, by outsourcing vehicle assembly much like how gadgets were made.

But that effort was eventually abandoned as Mr. Musk began to realize the importance of controlling more of a company filled with complex logistics and manufacturing nuances.

He has since brought in-house more of his supply chain than is normal for a car maker, including seat manufacturing, and developed greater expertise in battery cell manufacturing.

For the full story, see:

Tim Higgins. “Tesla Races To Boost Vehicle Production.” The Wall Street Journal (Friday, July 24, 2020): B1-B2.

(Note: ellipsis added.)

(Note: the online version of the story has the date July 23, 2020, and has the title “Tesla Prepares for Hiring Boom as Elon Musk Targets Manufacturing Expansion.”)

California Places the Regulatory “Final Straw” on Elon Musk’s Tesla

(p. A15) Informed by Democratic Gov. Gavin Newsom’s authorities that his factory in Fremont had to remain in lockdown, Mr. Musk tweeted: “Frankly, this is the final straw. Tesla will now move its HQ and future programs to Texas/Nevada immediately.”

The keyword here is “final straw,” suggesting that Mr. Musk’s cost-of-doing-business problems with California predate this virus. Hundreds of businesses already have relocated out of California, fleeing the uncountable regulatory straws the state has laid across the backs of anyone doing business there.

For the full commentary, see:

Daniel Henninger. “WONDER LAND; Elon Musk’s ‘Final Straw’.” The Wall Street Journal (Thursday, May 21, 2020): A15.

(Note: the online version of the commentary has the date May 20, 2020 and has the same title as the print version.)

Does Musk Want to Reach Mars or Conspicuously Consume Real Estate?

In my book Openness to Creative Destruction, I describe and praise those who I call “project entrepreneurs.” These are innovative entrepreneurs, like Walt Disney and Cyrus Field, who are motivated primarily by a desire to bring their project into the world, rather than a desire for conspicuous personal consumption. I have been unsure whether to count Elon Musk as a project entrepreneur. The evidence quoted below suggests the answer is “no.”

(p. M1) Over the last seven years, Mr. Musk and limited-liability companies tied to him have amassed a cluster of six houses on two streets in the “lower” and “mid” areas of the Bel-Air neighborhood of Los Angeles, a celebrity-filled, leafy enclave near the Hotel Bel-Air.

Those buys—plus a grand, 100-year-old estate in Northern California near the headquarters of Tesla, the electric car concern he heads—means Mr. Musk or LLCs with ties to him have spent around $100 million on seven properties.

For the full story, see:

Nancy Keates. “Elon Musk’s Big Buyout.” The Wall Street Journal (Friday, December 6, 2019): M1 & M6.

(Note: the online version of the story has the date Dec. 5, 2019, and has the title “Elon Musk Buys Out the Neighbors.”)

My book, mentioned at the top, is:

Diamond, Arthur M., Jr. Openness to Creative Destruction: Sustaining Innovative Dynamism. New York: Oxford University Press, 2019.

Tesla’s Process Innovation May Be Low-Defect, Fast-Assembly

(p. A13) Tesla became a darling of government handouts, with tax credits and public funding galore. It quickly grew into a sales phenom with high prices but low volume. Then, this year, its production numbers started to match those of the other major manufacturers. How Mr. Musk achieved this—and whether he should be considered a visionary or a charlatan—is the subject of “Ludicrous: The Unvarnished Story of Tesla Motors,” by the automotive journalist Edward Niedermeyer.

. . .

The book hits its stride when the author details Mr. Musk’s attempts to revolutionize the way cars are built. DeLorean and others faltered due to their inability to roll out large numbers of vehicles at a decent level of quality. Likewise the assembly line has been Tesla’s biggest obstacle. For a generation, automakers have cleaved to Toyota’s system of production, which emphasizes reducing waste and defects, slowing down the assembly line to achieve these goals. Mr. Musk, in contrast, feels Teslas should be assembled with a fast-moving line, deploying robots where other carmakers have employed workers.

Many observers bet that fast assembly won’t work. But this year Tesla delivered an impressive 158,000 cars to customers in the first two quarters, about the same number of Lexus models sold in the U.S. during that same period. Low-defect assembly was the major innovation of the automotive industry a generation ago; fast-line assembly may be the next. If Tesla’s fast-produced vehicles turn out to be reliable, Mr. Musk will deserve plaudits.

. . .

The portrait of Elon Musk that emerges from this book is one of a social-media obsessive who is constantly overpromising, playing the role of the self-sufficient business person while relying on government favors. Still, Tesla facilities produce lots of actual cars, which is more than what most other one-man marques have achieved. The accomplishment may not be as grand as Mr. Musk would like us to believe: He couldn’t have built his cars without subsidies from taxpayers who cannot afford Teslas and were given no choice in funding playthings for the rich. But his is an achievement, nonetheless.

For the full review, see:

Gregg Easterbrook. “BOOKSHELF; A Revolutionary Old Product.” The Wall Street Journal (Wednesday, Aug. 28, 2019): A13.

(Note: ellipses added.)

(Note: the online version of the review has the date Aug. 27, 2019, and has the title ” BOOKSHELF; ‘Ludicrous’ Review: A Revolutionary Old Product.”)

The book under review is:

Niedermeyer, Edward. Ludicrous: The Unvarnished Story of Tesla Motors. Dallas, TX: BenBella Books, Inc., 2019.

Cocoa Beach Thrives During Private Space Race

(p. B6) Jeff Bezos and Elon Musk are racing to send people into outer space and eventually to the moon and Mars. They are already improving the fortunes of a coastal Florida city that is home to their budding space ambitions.

Cocoa Beach, which sits south of Cape Canaveral on the Atlantic coast, was hit hard by the 2009 recession and the subsequent end to the National Aeronautics and Space Administration’s space shuttle program. The economic downturn and space program’s demise led to large-scale layoffs and a reduction in tourism.

Now the city of 11,000 is in the middle of a resurgence as the private space industry’s rocket launches bring jobs and visitors back. Blue Origin LLC has built a rocket factory north of Cocoa Beach. The company—founded by Mr. Bezos, the chief executive of Amazon.com Inc. —plans to launch its New Glenn rocket from Cape Canaveral in 2021. Blue Origin hopes one day to bring people to the moon.

Space Exploration Technologies Corp., known as SpaceX, is holding test launches on the cape and is expected to shoot a rocket with 60 satellites into space this week—and, at some point, send people on a mission to Mars. SpaceX was founded by Mr. Musk, who is also a founder of Tesla Inc.

For the full story, see:

Konrad Putzier. “Florida City Buoyed by Space Race.” The Wall Street Journal (Wednesday, May 22, 2019): B6.

(Note: the online version of the story has the date May 21, 2019, and has the title “Space Rockets Spark Property Boom on Florida Coast.”)

Intense Scaringe Self-Funded Start of Audacious Rivian

(p. B1) NORMAL, Ill. — By definition, the time of the world’s richest man is pretty valuable. But early last fall, Jeff Bezos sought out a 36-year old entrepreneur named R.J. Scaringe and spent the better part of a day in Plymouth, Mich., at the company he founded, Rivian.

Mr. Bezos got a preview of Rivian’s electric pickup truck and sport utility vehicle and liked what he saw. Not long after his visit, Amazon led a $700 million investment in Rivian. Two months later, in April, Ford Motor invested $500 million. All told, Rivian has raised $1.7 billion without selling a single truck or S.U.V.

. . .

(p. B6) Rivian is promising to do for trucks what Tesla did for luxury cars.

That’s where the similarities between the two electric automobile makers end. Even as Tesla and its brash chief executive, Elon Musk, made headlines by setting and falling short of some audacious goals, Mr. Scaringe and Rivian have spent a decade fine-tuning their designs.

. . .

Mr. Scaringe founded Mainstream Motors, the business that would later become Rivian, in 2009 after completing a doctorate in mechanical engineering at the Massachusetts Institute of Technology.

His timing was odd to say the least — the financial crisis had made investors skittish, and the bankruptcies of General Motors and Chrysler did not bode well for an automotive start-up.

Family and friends provided the initial funding, and Mr. Scaringe and his father both took out second mortgages to raise money. Continue reading “Intense Scaringe Self-Funded Start of Audacious Rivian”

“Ridiculous” to Project “Our Psychology into the Machines”

(p. A8)  . . .  the soft-spoken, 55-year-old Canadian computer scientist, a recipient of this year’s A.M. Turing Award — considered the Nobel Prize for computing — prefers to see the world though the idealism of “Star Trek” rather than the apocalyptic vision of “The Terminator.”

“In ‘Star Trek,’ there is a world in which humans are governed through democracy, everyone gets good health care, education and food, and there are no wars except against some aliens,” said Dr. Bengio, whose research has helped pave the way for speech- and facial-recognition technology, computer vision and self-driving cars, among other things. “I am also trying to marry science with how it can improve society.”

. . .

Cherri M. Pancake, the president of the Association for Computing Machinery, which offers the $1 million award, credited Dr. Bengio and two other luminaries who shared the prize, Geoffrey Hinton and Yann LeCun, with laying the foundation for technologies used by billions of people. “Anyone who has a smartphone in their pocket” has felt their impact, she said, noting that their work also provided “powerful new tools” in the fields of medicine, astronomy and material sciences.

Despite all the accolades, Dr. Bengio recoils at scientists being turned into celebrities. While Dr. Hinton works for Google and Dr. LeCun is the chief A.I. scientist at Facebook, Dr. Bengio has studiously avoided Silicon Valley in favor of a more scholarly life in Montreal, where he also co-founded Element A.I., a software company.

“I’m not a fan of a personalization of science and making some scientists stars,” said Dr. Bengio, a self-described introvert, who colleagues say is happiest when hunched over an algorithm. “I was maybe lucky to be at the right time and thinking the right things.”

Myriam Côté, a computer scientist who has worked with Dr. Bengio for more than a decade, described him as an iconoclast and freethinker who would feel stymied by the strictures of Silicon Valley. A communitarian at heart, she said, he shuns hierarchy and is known for sharing the profits from his own projects with younger, less established colleagues.

“He wants to create in freedom,” she said. Citing the credo of student rebels in 1968 in Paris, where Dr. Bengio was born, she said his philosophy was: “It is forbidden to forbid.”

That, in turn, has informed his approach to A.I.

Even as Stephen Hawking, the celebrated Cambridge physicist, warned that A.I. could be “the worst event in the history of our civilization,” and the billionaire entrepreneur Elon Musk has cautioned it could create an “immortal dictator,” Dr. Bengio has remained more upbeat.

. . .

. . .  he dismissed the “Terminator scenario” in which a machine, endowed with human emotions, turns on its creator. Machines, he stressed, do not have egos and human sentiments, and are not slaves who want to be freed. “We imagine our creations turning against us because we are projecting our psychology into the machines,” he said, calling it “ridiculous.”

For the full story, see:

Dan Bilefsky.  “THE SATURDAY PROFILE; Teaching a Generation of Machines, Far From the Spotlights of Silicon Valley.”  The New York Times (Saturday, March 30, 2019):  A8.

(Note:  ellipses added.)

(Note:  the online version of the story has the date March 29, 2019, and has the title “THE SATURDAY PROFILE;  He Helped Create A.I. Now, He Worries About ‘Killer Robots’.”)