If you told Musk, that he is causing net loss for the company this way, he would answer " so then the workers need to work harder". He can't be at fault.

Companies pay when people make mistakes.

Why the fuck would you fire someone when you just paid for a lesson that prevents further mistakes?

Meanwhile the thing other employees learn from the firing approach is to get better at covering up their mistakes.

And guess what happen when you ask workers to work 10 hours a day every day? Mistakes.

Same thing when children get punished too harshly or unfairly. They just learn how to lie and hide things

There is a story about a Japanese airline pilot who had to ditch a plane near I want to say San Francisco. No major injuries, no fatalities. When questioned during the inquiry, he said something to the effect of "I believe you Americans have a saying 'I fucked up'", and completely took responsibility. Instead of firing him, in recognition of his honesty, the airline demoted him back to the beginning of the pilot rankings and had him work his way back up. Within a decade he was back in his former position. The lesson is, own your mistakes!