Part 5/11:
Innovation as the Core Driver of Margins
For investors, Musk notes two critical pillars: continued innovation and profit margins. Innovation, Musk asserts, is the primary catalyst for improved margins. The best engineers and a culture of relentless innovation are essential in pushing Tesla’s products beyond current limits.
Having access to the “most brilliant people” and providing an environment where they can thrive is Musk’s formula. He recognizes that merely paying top dollar is insufficient—what matters is the cultural environment that fosters continuous breakthrough innovations.