Elon Musk believes that bad news should be prioritized in meetings and wants employees to always bring up at least one piece of bad news. He feels that bad news should be loud, repeated, and immediate, while good news can be conveyed quietly. Musk cites examples from SpaceX, where they always lead with bad news. He emphasizes that this rule should be followed in every meeting within the company. Musk wants to implement this practice at X Corp as well.