The Idiot Index

I just read about Elon Musk's 'Idiot Index'.

This is the ratio of the cost of the raw materials used to produce a product or component to the cost of the component itself. Of course it's less than one, but by how much?

For example this ratio was apparently 1:50 for rockets. I bet it's similar for cars. This is just an indication that either the manufacturing process for the product is pathetically inefficient, or there is price gouging. Either way, it's bad for business. But if others are doing it, there's your business opportunity.

I'll admit, I like Elon Musk as a businessman. He's just so good at what he is doing, and I love the concept of the 'Idiot Index'. It can also be adapted to services, IT and such. What is the value your product is providing and earning Vs how many people does it take to produce it? I think he applies it to X / Twitter. I won't comment on the political aspects of Twitter, but he does seem to be doing more with less.