Music Dragin' Space X Com Check ground stitches! We're going to go for a large budget phase next. 3, 2, 1, 0. Welcome aboard. Here again, we got to see ISSF, the window, which was pretty neat. The larger window ever flown in space. The larger window ever flown in space. The larger window ever flown in space. The larger window ever flown in space. The larger window ever flown in space.
Welcome to Stanford. I love this school. I've been looking forward to this interview for a long time. As I know, I have many of my classmates. A bit of a space nerd. As a kid, we read all the space books over the 60s. A polyphotine. It was my favorite movie. I think still is my favorite movie. Clean Cranc, the mythical flight director. It was a child hero. It's really great to have you. To me, space has always been about the next frontier and testing the limits of what is possible. Today, nobody embodies that better than SpaceX and your story. With that, let's get started.
One of the defining characteristics of SpaceX is what's taking. But the same could be said about you joining the company. 20 years ago, this year, after a stable career in aerospace. What led you to join SpaceX and take that risk at that time? First of all, I want to start out by saying thank goodness. I took that risk because I almost didn't. In fact, and when Elon asked me to be president in 2008, I almost didn't say yes. What a mistake that would have been.
Yeah, so I was in the aerospace industry. I started my engineering career. When was it? In 86? What to Chrysler Motors? Went back to school because I was unsatisfied with the level of technology that I was working on there. Went back to university. Thought I'd get my PhD. Wacky, so that I can't be in school again. I'm going to go back to work and so I went to aerospace. I think I started in 88. Interestingly, I started on Halloween in 1988 at the aerospace corporation.
My boss wasn't there when I started but came back a week later. He was on vacation and he said something about flying in on my broom in 1988. Which you can't say now. But he could say it then. The world is changing even if we feel like it's too slow. So I started my career in 88 in the aerospace industry and thought I'd been there for roughly 15 years. And I thought, look, it wasn't an industry that was vibrant. It wasn't innovative. We weren't moving quickly. We hadn't gotten back to the moon.
And I thought, you know, this is my last job in the aerospace industry working for Elon. If we can't do it at SpaceX, then I'd rather sell real estate or be a barista or something else. I didn't want to work in the industry. And so I knew this would be my last job in the aerospace industry and it will turn out to be the case. So that's super cool. Oh, but risk. You guys about risk. I'm glabbing around. Sorry. So it seemed risky actually. I had a very stable job.
I owned 3% share of the company that I was working for which is large for an employee. And it was a pretty safe job. So this was not a safe job. And I didn't know Elon well at all, in fact, at that time. But I really kind of jumped off the cliff. I was dithering around. He said he wanted me to join the company and I said, you know, I'm fine. I don't need a job and kind of dithered for about a month. And finally, I'm like, I'm such an idiot.
I was driving on the freeway in LA. Like, what an idiot. Say yes. So I called them on the phone and I said, I'm bleeping idiot. And he laughed. And he said, welcome to the team.
So you got sold on the idea, right? Yes. I had a lot of confidence that they thought it was going to be your last job. Last job on the industry. Oh, I got it. But it was the very stuff. Fair enough. Or sell it to you. But your first job was Vice President of Business Development. So now you had to sell that idea to customers. Yes. And SpaceX was a little more than a pipe dream at the time. You were many years away from launch. What was that selling process like?
You know, it's interesting. When you don't have a product, we had an ideal to sell. And it came at probably the best possible time. You know, we had the events of 9-11 and rapid launch. Low cost access to space. Because it was obvious that it was going to be very critical. And so it was great engineers. I am not going to take away. In fact, SpaceX is the great company and does the great things that we do because of our extraordinary staff. It's not because of me. It's not because of Elon.
And so I was selling the team. I was selling the ideal. I was selling the promise and the hope of reasonably priced launch. I still don't think launch is reasonably priced. But if you go by comparison, it's much less than it was before. We're getting there. Yeah.
So let's talk about launch. And about the first rocket, right? The first rocket was called the Falcon 1. And you had three unsuccessful launchers. It was 2008. The company was running out of money with the financial crisis. You were promoted to President CEO because of promises you had made customers at this point. So you had already been promoted. And the company bet the entire company on this one launch on the fourth launch of the Falcon 1. So let's watch that launch.
Five, four, three, two, one, zero. The first stage one. We have the Falcon 1 launch vehicle. Falcon has clear the tower. Plus 12. Curious. This is a life. So it's a life or death moment for the company, right? You have a little more dramatic about that launch than I am actually. I figured we could pull a fifth launch off. But that was it. Right. Yeah, I thought we could get to five he thought four was it. I'm glad we didn't have to test who was right on that one. But yeah, it was quite a relief.
And what were the months leading up to it like? Well, this is a relief. This is of, I think it's a hilarious story. I was in Scotland, Glasgow. The IAC was having a show in Glasgow. So I was in Scotland to apologize, discuss, explain to the customers that were on the third Falcon 1 launch. That we failed. Kind of basically do a paper about that launch. And it was the night before my talk. I was in the hotel room with my husband. And this is not going to get inappropriate. My husband was sleeping. I'm in the bathroom with the shower on, typing up a proposal for the $1.6 billion NASA resupply to the International Space Station.
We're literally writing the proposal. I'm on the phone with my team back in the US because we had to update our pricing. And so the shower running so that my poor husband could sleep. I'm like punching away, talking. And then it's like, oh shoot, we're about ready to launch, right? And so I turned away from my proposal on my laptop to the launch. And was watching it as we lifted off. I ran out to the hotel room and I didn't care if I woke him up at this point. At this stage, we lifted off and we were climbing an altitude. And we watched a skit to orbit. And then in my yoga pants and jammy top, ran down the hall. That's probably the most inappropriate thing I'm going to say here today. But ran down the hall, knocked on all the doors from my team that was there. And we hugged and kissed and cried. And then kind of broke into the bar in the hotel because it was like two in the morning. And they let us have the champagne, but it was warm. But it was extraordinary.
I've always loved having emotional business, right? It is incredible. Incredible emotional moments, right? In fact, by the way, to future entrepreneurs, I think it's really important to have these big moments. Figure out what the big moments where you can bring your teams together. It cures a lot of ills. It really helps with morale and it's incredible for team building. So launches are easy. It's an easy spectacle to do that with. But I think it's really important to find those kinds of moments in the development for your future businesses.
So let's actually move forward a few years. Your first big kind of commercial product was the Falcon 9. It was designed in part of NASA's needs in mind to replace the space shuttle to go to the National Space Station. You had done a number of launches already, including seven resupply missions to the International Space Station with NASA. And the 8th one was also supposed to take critical food, supplies, medical equipment to the National Space Station. But that one didn't go as well. let's watch that video. This is two minutes into flight. Daddy coming back shows vehicle on course on track. Poof. Yeah.
You had made it seem routine almost at this point, right? And then this happens. You're in crisis management mode. What's the first thing you do? Yeah, so I was actually at my ranch in Texas on this launch. It was the first launch that I was not there. There. Therefore, yeah. By the way, it was also the first and only launch that I didn't do my pre-launch little routine. Which we can chat about later. But because I was in my slippers. And so I think the most important thing when you suffer something like that is you focus everybody on the job, the task at hand. We had a failure in front of us on Elon's birthday, by the way. That was his birthday. Which is why we don't like to launch on his birthday. It just feels like bad karma, actually. So you get to work. I had to do a press conference doing it remotely, of course. And we started digging through data. Of course, we obviously, I flew back to Hawthorne and pulled teams together and we figured it out. It was a weird one. That one. And then.
So this was in June 28th, 2015. And then we suffered another failure. It was not a launch failure on September 1st, 2016. Not a little over a year later. Right? We basically blew up a satellite that was sitting on the pad as we were going through a pre-launch test. So two failures. Not back to back. We had had an extraordinary success in December of 2015. And we can come back to that as well. But this is a point that I try to make with students for sure.
So I think after the CRS-7, that first failure, that failure that you saw there, I felt very comfortable leading the team through the investigation, leading the team through the physics, and getting to the answer. The business wasn't really at risk. I mean, failures are incredibly impactful. I think every failure we've had has either cost us or delayed us about half a billion dollars. But I felt like it did a pretty good job in that time frame. I did not do a good job after the failure when we blew up on the pad. I was much more worried about the business.
This particular event was much harder to figure out what it was. And I definitely showed my, not despair, that's probably too much. But my concern, I definitely wore it on my sleeve, or as my husband says, I have a billboard on my forehead. And I wore that badly, in fact. So my lesson there is, you know, you certainly don't want to be disingenuous with your team and with your customers. But it's not really helpful to show your anxiety when you're suffering, because your employees are suffering worse than you are. So it's really better to keep people focused on the business, keep focused on doing great things, and they had demonstrated that they could do great work up till then too.
So that's a nice little nugget. Thanks for sharing that. So one of the things, particularly after this first failure that I find incredible, is you had six months without launchers, which I'm sure you had a bunch scheduled that were delayed. But six months later, you are launching a rocket again. But instead of simply focusing on getting that rocket and the customers payload up into space successfully, you take a huge risk as well and try to land the booster. Do you have that video?
And I have that video. And I know where's your favorite. It was a large pit out there was so fun. Why was this so exciting? Okay, so what's key about that is the last launch just prior to that one we failed. And it's disappointing for the employees. It's disappointing for the company, but we failed our customer. So we stood down, we discovered what the problem was. We redesigned the rocket to be able to land because the previous rockets really couldn't land in that way.
So we complete, we did a complete upgrade on the system while figuring out what we did to fail. And then like in complete view of the public, you go out there and you show are you, are you meant for greatness or you need to go back to the drawing board a little bit. That was a great, a great day. It was a great night. We had a lot of champagne at my house that night probably more than I've ever drank ever. I did not feel great the next day, but I did go to work. I went to work. Yeah, so that was an extraordinary moment for the company just share with us a little bit why it's so important to the whole business market.
Well, first of all, no one had ever landed a rocket before, right? That was the start and the key piece of the technology necessary to reuse rockets. So some, I know there are some space nerds out there, but there are many of you that are not. By the way, if you are a space nerd, you should wear that proudly. I certainly do. But rockets before SpaceX and to some extent the shuttle did it, but, but there was, there's no fully reusable launch system. Rockets launch and then they either disintegrate in the atmosphere of the second stage does or they just get dumped into the ocean right now.
So imagine what air travel would be like if you took an airplane from San Francisco to New York and you had to toss the aircraft after that flight. Like life and society in the world would be so different if you couldn't reuse your aircraft. And so we take that same approach with space travel that you have to be able to reuse your rockets in order to facilitate human access to space, which I think is incredibly important. So that was the start and we had tried many times before.
We tried parachutes, but they rip off in the speeding through the atmosphere. So that was just an extraordinary piece of technology, guidance, navigation, control, you know, hyper retroactive propulsion, crazy, hypersonic retroactive propulsion. It was just amazing. It was great and it started our ability to refly rockets. We didn't refly that one. That one is sitting outside the front of our building in Hawthorne, California. You can drive by it and see it in fact. It's kind of a neat monument.
But we have, I don't want to say perfected because we have not perfected, but we have operationalized the ability to land rockets, refurbish them and refly them. Our goal is to be able to do that like an airplane, like I was saying in the back room, you know, they said something someone asked something about, you know, rocket efficiency and we're not very efficient. We actually aspire to be as efficient as the airline industry. And that's probably horrifying to many of you in the audience because you probably don't think that the airline industry is particularly efficient, but it's way better than we are. So it's still a nice model to use.
So after this in 2015, this really became routine. Space X was launching dozens and dozens of trips up into space every year. In May 2020, mainly the pandemic, you took another huge leap and it involved humans. You launched two astronauts to the National Space Station, the first astronauts to launch on a private vehicle and the first to do so from American soil on any vehicle in nine years. We were doing it with the Russians. How did you carry that responsibility and how do you prepare the team for it?
So first of all, keep your head high. Don't show your anxiety, but I honestly hate crew launch days. I just don't like them. It's nerve-wracking. It's one thing to have a failure when you've got a satellite, even a billion dollar, three billion dollar satellite on top. You can't put a price tag on the two to four people that are sitting on top of that rocket and it's hurtling through the atmosphere. So it's quite anxiety-producing. It's always a huge relief to get drag into orbit, get drag into the International Space Station and then say, okay, NASA, they're yours now until we have to bring them back downhill six months later.
So keep people focused on the work for sure. Don't let them show your anxiety. You know, don't let them see my anxiety even though I've talked about this enough. They all know I'm scared enough during launch day on this. Follow your routine, be keenly aware. Make sure you've got employees that feel very comfortable talking about, hey, I might have screwed this up. Can we go back and look at the data and make sure that I didn't screw this up on the rocket or the spaceship. Yeah, keep them focused on the business. Don't show how nervous you are and pray.
So even this has become routine now. I think you've launched four trips to the International Space Station and something like that. So we did Bob and Doug and then we just flew CRS-4 and then we also flew Axiom and then we did Jared and his team. That's true. Okay, so seven.
So let's talk about the future then because you know, and let's talk about Starship, which is the big bet you have as a future or as this rocket was previously called the big Falcon rocket. BFR. BFR. Who chose to rename it? Well, Elon named it the first time. And Elon named it the second time. Got it. There was one in between two, ITS. Interstellar was over there. Yeah. Starship is better.
What's so different about this bet and what does it mean for humanity? So the difference here for those of you that are not space geeks, this first stage goes up, delivers the second stage to carry on its way to orbit, comes back. It's the first stage, but the second stage is now reusable. It drops off the payload, takes people around the moon, takes people to Mars, whatever it is, and then it comes back and lands. Our second stage right now is not reusable on the Falcon program. Our third stage, if you look at a dragon, is reusable. Not very operationally, right? It lands in the ocean, get helicopters and ships to go get it out of the water, take it back, clean off the salt water, refurbish it and refly it. A dragon takes currently like 90 days, we're trying to get it down to 45 and then even faster.
But that's not very operationally efficient. Starship is meant to launch land on the pad, on the pad. The arms come and pick up another starship, pick it up, put it back on the pad, and launch within an hour. So like an airplane. That's the plan. And it's supposed to take us either to Shanghai or to Mars, right? Hopefully some version of this would take us to another star system.
Which would be so great. So I talked with the development of this, because there's something remarkable about that. As you mentioned, it's supposed to be fully reusable. I saw many estimates online, but each one of these costs somewhere around $200 million to build. That might be a wild guess. But your product development strategy seems to be to blow one of these up every few months.
So let's take a look at star-ship number nine. Prepare to restart two engines, flip the vehicle vertical, then transition to one engine for the landing burn. So that seems expensive. I'm completely different to how traditional rocket technology works. They make the whole rocket as perfectly as possible. They win-tust it, and they say once it's perfect, we'll try to flight-tust it. These are prototypes that you just keep going.
What's behind that we are thinking about rocket technology? This isn't very well understood publicly. I'm a little surprised we don't talk more about it. We are much more focused for the star-ship program on production, building the system that will build the system. Then we are on the rocket technology itself. I didn't touch anything. I break hardware by walking the line, so this makes me nervous. We know how to get rockets to orbit. We know how to do that. This is a completely different one.
We are very confident in our ability to figure out how to do that. We were much more focused on, can we produce a rocket that can get to orbit? Like really produce Falcon. We produce between 7 and 11 Falcon first stages per year. We're producing a second stage every week right now. What we want to be able to do is produce a rocket a day or come much closer to automotive.
If you are going to take people to Mars, you're going to go in a flotilla or a swarm. I don't even know yet what the right term is yet for a group of starships to head to Mars. You're going to need a bunch of them. And producing five a year isn't going to get you there. You really want to launch hundreds on that synotic period with Mars when you're taking people there. We need to have a production system build rockets. Much like a production system to build cars. Maybe not quite so many. I don't think we need a million a year. But we need more than a couple hundred. That's all about the production system.
We will get this to orbit. I'm not saying it's easy because it's very different. You'll see the way, well not the orbital part but the landing part is very different. We belly flop to dissipate the heat and then convertical right at the last second. It's different from the way we do it and I'm Falcon. And we did it. We stuck a landing, bringing the starship back. Now it wasn't for more bit. It was just for altitude. It was not for more bit. So you're trying to do really hard things.
I want to talk about what that load. Space six has the most ambitious goals on the tidest of timelines. What's our latest timeline on getting to Mars? Getting to Mars? I think we'll put people down within a decade. You're in charge of. I know, I'm crazy. You're in charge of executing on that goal to get human beings to Mars within a decade. That's more Elon than me. But I'm here to help. Right. But how do you balance those ambitious goals? Which maybe Elon comes out and says, and getting the team comfortable that is possible? So there's a couple of strategies to do that.
First of all, you always aim high. We have achieved everything we have wanted to. Never in the timeline. We fail on timeline but that feels like the right fail to make as opposed to not achieving what you're trying to achieve technically. So you demonstrate that you've been able to do these crazy, insane, absurdly ambitious things in the past. You can continue. you know, pump people up to do it again.
And you try to pull apart the seemingly impossible situation and how are we going to design and develop this. And you pull it into smaller pieces. You build a prototype. You test it. You put prototypes, you know, subsystems together and you test that. And you kind of use a building walk approach to reach your goals. And the team. They're very enthusiastic about it. It's the biggest of goals. It's like whatever. Rockets are super cool.
So you've been at SpaceX for over 20 years now. This year. Yeah. And now you lead a team basically of 12,000 people. What have you learned about your leadership style over the years? What are you wishing you now? You knew then that you know now. Let me answer the other stuff first. I'm not a regretter. So it's really hard for me to kind of go back and say, oh, I wish I did this thing.
I'm a very collaborative leader. Actually, I've got some employees here. You can tell me if I'm a BS artist or not. I like to get to solicit people's opinions, but I'm not afraid to make a decision. I need more data than Elon does to make a decision, in fact. And I don't know whether that's experience or risk taking. I don't know what it is, but I like a little bit more data, but I definitely like making decisions. I like to hear the conversation until you're done, and you have to make a decision. And it's rare that you get people to agree on any topic. Right? So you collect the best data that you can. You listen as hard as you can. You ask questions. You bring more data back, and then you got to go.
Yeah. So it's a slightly different question. Your job is to run the business, right? Sometimes things come up in the organization that are core to the culture, that are core to who you are as an organization. The sectoral misconduct allegations against Elon last week are just maybe one example of that. I'm wondering how you think about those moments, those moments of truth, and how you think about responding to different stakeholders.
So I think leaders in any business face, adversity, and really hard challenges. And what's most important is that, first of all, you think hard about what happened, what the response is going to be, and I think you just have to be really honest with yourself about what the right approach is. I did send a letter. I came out last night, very exciting for this particular discussion here. I did send a letter to employees. They were screaming to hear from me. And I was advised to not send that letter. Not by legal, but by my press team. And I said, you know what? First of all, I have to speak to the people. I have to speak to my employees. They're the reason why SpaceX is what it is. And I care deeply about them. But I knew I would have, no matter which way I played that, someone was going to be unhappy with me. But I had to say it. I have worked for Elon for 20 years. I don't believe he could have done what he was accused of. But he is imperfect. He's imperfect. I'm imperfect. And I thought being honest about that was the right approach, regardless of what my team told me to write or not. What was left out of that letter, by the way, is the end where I basically say, we are SpaceX's who we are because of you. And if you ever feel uncomfortable or work, please call me. So that part always left off. And anyway, so you face adversity. And I think the only way to get through it is to make sure you understand the situation to the greatest extent you can. And then be honest with yourself. And pick a path and do it. And don't be afraid to say you made a mistake if you make a mistake. I'm Irish. That's very Irish, by the way, to admit you are a dummy. And I'm not admitting that in this case, by the way, I'm saying one should be willing to do that.
Speaking of mistakes, I've heard that SpaceX has a culture of feedback. That's something we take very seriously here at the GSB as well. We have a whole class where we learn how to get feedback. Feedback is a gift, it is a continuous motto of the school almost. I'm wondering how SpaceX operationalizes that in the day to day.
So critically important, 360 feedback. And immediately, the sooner you get feedback, the better off you are. That's a golden nugget of data on how you are impacting your co-workers, your company, the project. So that feedback is so critical. So give feedback as quickly as you can. And we always try to tell people to do it. Our review system, we require that you get reviewed 360 feedback from at least three. Sometimes, if you've got employees that are really great in some areas and really not great in other areas, you try to solicit more feedback to figure out what's going on in those areas and try to work with them to figure out how you can get people to this place where it's all contribution all the time. So it's in our review system. We talk about it at the first day of work. Please give feedback. But engineers, well, you know, and it's not really human nature to be willing to look someone in the eye and say, hey, that was not helpful. Not super helpful. Could you do it this way? You know, be objective. Try to not personalize it. In almost every case, and feedback could be technical. It doesn't have to be like, hey, you were total jerk to me and I'm really mad about it. But in almost every case, the person, at least in my experience, person is not intending to do bad things. They either made a mistake. They were unaware. So I think approaching it as not taking it not personal, but just talk about how this situation impacted you or how this person's work, caused your work to not be great. You couldn't finish your project or whatever. It's just really important. Exactly what we preach here as well.
Before we go to Q&A, I know there are a lot of great questions in the audience. Two questions again about the future. Ferrison, you already made a reference to this. What comes after Mars?
Yeah, so we are not working on a ship that yet has the propulsion technology to take us to other star systems. But I certainly hope that Mars is that example that shows that humans can live beyond planet Earth, and that we will focus on propulsion technologies or some way of getting to a place that would otherwise take 4,000 or 5,000 years. So I'm very excited about that. It will not happen in my lifetime, but I hope that some of the work that we're doing will kick off the aspiration to go do that.
Like the shows that you watch, you know, we can't. And they're always about war by the way. Star Wars. What is that? Star Trek is not necessarily about war, but it's still military. I don't know why it is that way, but hopefully we can go there in a civilian way and meet other sentient beings, and that would be great. Yeah, it would be quite something.
So for the second question, I actually want to bring us back to Earth to this auditorium, because many of us are thinking about our very immediate future. So I checked this morning, I graduate in two and a half weeks as do many of my classmates here. You're our last view from the top speaker of the year. You have the stage. What advice would you have for us as we embark on the next chapter of our lives?
So it's a very simple statement, and I'll follow it up with a couple of examples. You want to take risks in your career. You absolutely want to take risks. Yeah, maybe in your life too, although you have to balance, right? You got to balance it. I almost said no to Elon when he asked me to join SpaceX. It would have been. So I would look back. I'm not a regreter. That is the one thing that I would go back and regret.
I almost said no when Elon asked me to be president. Because I really loved my job. My colleagues, my brother and sister VPs were great compatriots, and I thought it might be weird to be the boss. So I almost said no. And I'm so glad that I didn't, but it felt like a risk to say yes there. And then this is a more personal risk. So when I first met my current husband, husband number two, sorry. We had our first date, and I thought he was roughly my age. Roughly my age.
And then he said something about the Gulf War and wanting to have been a pilot. I was like, Gulf War. Like, how? And we were in the car and I looked over and I'm like, how old are you? And he was about eight years younger than me. I was like, not interested. Why would I go out with this infant? No way. And luckily, I didn't take that little voice in my head. And I took the risk and dated a much younger man and happily married. So it's not really silly, but a little personal. But I almost said, I am not going to date someone that's eight years younger than me. That is weird. Anyhow, took the risk, paid off. What a great note to end on. With that.
Before we close, and we are almost out of time, wanted to do a traditional view from the top lightning route. Oh, okay. Ready? I'm terrible at these. Okay. Would you rather live in the universe or the metaverse? I'm not sure what the metaverse is by the way, but I think I'm all universe all the time. I'm not a student here who knows what the metaverse is.
What are your favorite pre-launch, which you mentioned before? Oh, I put the inside of my shoes with sticky notes that say Scotland on them. So I am in Scotland for every launch because we got to orbit for the first time when I was in Scotland. And the only gross thing about that is if I don't take them out right away, you like stepping on paper and it kind of disintegrates and then you get like feet paper all over the place. And you really have to vacuum it up. It's pretty gross.
Toast-launch, rituals? I don't have a post-launch ritual, actually. Avert celebration. Champagne. Every time? No. Every launch. Well, we're launching a lot. Maybe not every time. Maybe not every time. Certainly not during the day at work. That's an at-home thing.
Favorite space movie? Firefly. And that's the show. But there also was a movie. Firefly. Hands down. And you have a starship at your disposal. It's yours. You can go anywhere on Earth or into space. What would you take it? I'd go to the moon. Orbit or land? I would like to land. Successfully. Yeah, I love the moon. And why the moon are not Mars? Mars is six months. It's further. I don't like to camp.
So you're traveling for six months to really camp in the most extreme way. Humans have ever camped. Whereas camping on the moon, it feels like, ah, if you hate it, you just. How about that? You just come home. Or you can put up with it for a couple of days and then you just get home. Mars, you're kind of stuck for two years.