Part 2/10:
The speaker emphasizes how Tesla contributes approximately 10% and SpaceX about 5% to their total asset allocation. A critical observation is Elon Musk's keen awareness of excessive spending in various projects and the need for operational efficiency. By switching from Cost Plus contracts to fixed-price contracts, the inherent risks can be redistributed away from the government to contractors like SpaceX. The speaker illustrates this by comparing the performance of Boeing and SpaceX on a government contract, where the latter exhibited significantly better results despite their lower initial bid.