An insider, sharing insights anonymously with Fortune, provided details on the hiring dynamics at X, shedding light on Musk’s preferences and red flags when considering potential candidates.

The interviewee highlighted Musk’s unequivocal stance on candidates who have experienced previous layoffs. According to the insider, Musk views candidates who have been laid off negatively, regardless of the circumstances surrounding the layoff.

This position reflects Musk’s approach, where he appears to avoid individuals who have gone through mass layoffs. However, it is noteworthy that, despite Musk’s general aversion to hiring such candidates, the source revealed that Musk had rehired some of the workers he had laid off in the past.

Despite the quick and drastic nature of these decisions, Musk acknowledged that there might have been instances where individuals who were laid off perhaps should not have been. He acknowledged the unintended consequences, stating, “If you do it fast, unfortunately there’s going to be some babies thrown out.”

The company has also resumed hiring, as evidenced by the numerous positions listed on its careers page. Moreover, X is expanding its operations by establishing a new “trust and safety” center in Austin, Texas.

While this approach may be viewed as stringent by some, it aligns with Musk’s overarching goals and principles in building and leading successful ventures like X, Tesla, and SpaceX. As X continues its hiring activities and expands its footprint, the dynamics of its workforce will likely reflect Musk’s discerning approach to talent acquisition.

However, these methods often fail to capture the true potential and skills of candidates, resulting in missed opportunities for both employers and employees. Additionally, the emphasis on credentials and experience can lead to a lack of diversity and a perpetuation of the status quo.

By prioritizing potential and passion over credentials, Musk has been able to tap into a pool of talent that may have been overlooked by more conventional methods. This approach not only allows for a more diverse workforce but also fosters an environment where creativity and innovative thinking are valued.

Musk also values passion and purpose in his hires. He looks for individuals who are not only skilled in their respective fields but also deeply passionate about the mission and vision of his companies. This alignment of values and purpose creates a sense of shared ownership and commitment among employees, leading to greater motivation and productivity.

By prioritizing potential and passion, Musk has been able to build teams that are highly motivated, innovative, and capable of tackling complex problems. This approach allows for a diverse range of perspectives and ideas, leading to more creative solutions and better outcomes.

Straubel was initially hired as a consultant for Tesla but quickly impressed Musk with his innovative thinking and technical expertise. Recognizing Straubel’s potential, Musk offered him a full-time position and entrusted him with the development of Tesla’s battery technology. Under Straubel’s leadership, Tesla has become a leader in electric vehicle technology and energy storage.

Shotwell joined SpaceX in its early days and played a pivotal role in the company’s growth and success. Musk saw in Shotwell a combination of business acumen and engineering expertise, making her an ideal candidate to lead SpaceX’s operations. Today, SpaceX is at the forefront of the commercial space industry, thanks in large part to Shotwell’s leadership.