Elon Musk, the innovative, charismatic and brilliant businessman seems to continually roll out new ideas and new products at Tesla. In a perfect world this is exactly what investors are looking for but many of the ongoing projects are far from finished. Would it be fair to describe Elon Musk as a butterfly, spending limited time on various projects and then flying onto the next one?
Reality
If anyone can keep all of these plates in the air it has to be Elon Musk who was been there, done it, bought the T-shirt and the shop. He’s not a man who plays things by the book, he does everything his own way and is not afraid to upset the establishment. As a consequence, Elon Musk has many enemies in the world of business, politics and media. There is no doubt that the knives are out for the Tesla CEO and while he is not necessarily bothered in any way, shape or form, his shareholders might be.
Fighting fire with fire
Those who follow this forum will be well aware that we have noted on numerous occasions how Elon Musk is able to bring out groundbreaking announcements when the going gets tough for the company. There is a growing feeling that these announcements are used to deflect short-term criticism away from the company and his management style. We know that the company is burning cash at an alarming rate, production of the Model 3 is well behind the curve and while the company is adamant it will not tap shareholders for further funding this year, not everybody is convinced.
Perhaps if for example the basic Model 3 project was done and dusted, all deliveries fulfilled and new vehicles in the showrooms to keep up with demand, everybody would be happy? We recently heard word of a Tesla electric truck and only this week it was revealed that the company has produced a fleet of Model 3 dual motor vehicles. Apparently this “leak” of the dual motor vehicle was unintended but those who know Tesla and Elon Musk will be well aware that nothing happens unless authorised by the top management.
Workaholic
Elon Musk is a workaholic and while his daily business activities seem impossible to many people, he has a very set routine and it works for him. His day is set up as efficiently as possible; no time, money or brain capacity is wasted. Not only does he have massive exposure to the electric car market but he is also involved in solar power and space travel. Any normal person would struggle to run any one of these three businesses but to run all three together, just how does he do it?
The vast majority of successful entrepreneurs over the years have bowed to pressure from the mass media to make them more accessible. The reality is that Elon Musk is an extremely successful businessman, continues to think of new ideas and while extremely wealthy it seems that money is not his main goal. He will never bow down to the mass media, he will forever challenge the establishment and therefore will always be a target for criticism.
Is Tesla burning through cash too quickly? Should the company focus on one project at a time? If you change Elon Musk then you change the way he works, his results and his business skills will not properly utilised. On balance, looking back at his track record, Elon Musk has always delivered and while Tesla may well be his greatest challenge, it would take a brave person to back against him.