OK, so it's the 394 version. That's the same as the one I had (still have....not in use, currently) as a kid.
It's fussy. It's the heat from the bulb rising up through the vanes in the beacon that (should) cause it to rotate.
However...
If the bulb is not getting hot enough (high enough voltage) and the needle spindle inside the beacon top is not perfectly centered/aligned perpendicular to the top of the beacon it will disappoint. Been there. Experienced that.
Other quirks?.....maybe the vanes on the beacon top are not consistently bent, too closed, too open. After all, this thing is necessarily light in weight, unforgiving to rough handling, etc.. IOW, as Ralphie's dad said in A Christmas Story...."F-r-a-g-i-l-e!!" Dust/dirt in the dimple on top of the bulb can inhibit free rotation of the beacon.
And the downside, of course, of jacking up the bulb voltage in an effort to create more heat is a shortening of bulb life. Thankfully the dimpled bulbs continue to be readily available, though. Beacon tops?...in excellent condition/manufacture?.....not so much.....at least at as reasonable a price as the bulb.
So......simple in concept? You bet. Reliable in performance?....not that I'd testify to.
Which is why, I'm surmising, Lionel subsequently switched to the 494 design.....w/coil, a.k.a. vibramotor.....which has a whole different set of quirks.
Good luck.
KD