Elon Musk’s cost-cutting philosophy —"Slash first, fix later"

Elon Musk’s approach to managing expenses across his companies—Tesla, SpaceX, and X (formerly Twitter)—has been defined by aggressive cost-cutting, even at the risk of disruption and controversy. In a detailed article by Ryan Mac, Kate Conger, Jack Ewing, and Eric Lipton, this strategy is described as "slash first, fix later," reflecting Musk’s preference to reduce costs to the bone, often dealing with consequences afterward.  

This methodology was evident during Musk’s early tenure at Twitter. After acquiring the platform in October 2022, he initiated sweeping budget reductions, including mass layoffs and the termination of executive perks. In one instance, Musk personally reviewed expenses, terminating contracts he deemed excessive. While these measures sparked operational challenges—such as data center disruptions—they also delivered significant savings.  

Musk’s focus on efficiency extends beyond Twitter. At SpaceX, he simplified rocket designs to lower costs and developed parts in-house to avoid expensive suppliers. This hands-on frugality allowed SpaceX to undercut traditional aerospace costs and spurred advancements in commercial space travel. Similarly, at Tesla, Musk's cuts have kept production costs competitive, though some decisions, like replacing radar sensors with cameras for autonomous vehicles, have raised safety concerns.  

Now, Musk’s cost-slashing ethos is poised to influence the U.S. government. President-elect Donald Trump has appointed Musk to lead a new Department of Government Efficiency, tasked with trimming $2 trillion from the federal budget. While Musk's tactics have proven transformative for private ventures, their application to the complexities of national governance remains to be seen.