Working for Elon Musk: Ex-Employees Reveal His Management Strategy | WSJ

Summary

Elon Musk's intense and demanding management style, honed at Tesla and SpaceX, is being applied to Twitter. Known for rallying employees around ambitious missions and pushing for 'hardcore' work hours, Musk's approach has led to high productivity but also exhaustion and turnover. His leadership, characterized by direct communication and a focus on top talent, has faced challenges as he reshapes Twitter's mission and workforce, aiming for a leaner, more efficient company in a competitive social media landscape.

Takeaways

• 🗣️ Elon Musk is known for his intense and demanding management style, expecting quick and concise communication from his employees.
• ⏰ Musk's work schedule is notorious for including late-night texts and early morning calls, indicating a 24/7 work culture.
• ☕ Employees often have to prepare themselves for high-stress meetings with Musk, such as by consuming espressos to stay alert.
• 🕒 There is a '30-second rule' when presenting to Musk, underlining the need for brevity and directness in communication.
• 🚀 The mission of companies Musk leads, like SpaceX aiming for Mars colonization, is used to inspire and rally employees around a common goal.
• 🔧 At Twitter, Musk faces the challenge of aligning the company's mission with his vision, which may not be as universally motivating as space exploration.
• 💰 Musk is personally invested in his companies, having put significant personal funds into Tesla during a critical financial period.
• 🛌 Musk's dedication is exemplified by his willingness to sleep at the office and work long hours, setting an example for his employees.
• 🔪 Musk is known for making swift and significant cuts to the workforce, aiming to streamline operations and maintain a lean team.
• 🏆 Employees at Musk's companies often feel like they are part of an elite group, contributing to a 'special forces' mentality.
• 💼 Musk avoids traditional corporate hierarchies, preferring to communicate directly with employees working on projects of interest.
• 💼 Musk motivates his employees by tying their compensation to the company's performance, thus raising the stakes for everyone involved.

Q & A

What is the key to having a successful conversation with Elon Musk according to the script?

To have a successful conversation with Elon Musk, one must be concise and quick, as he values efficiency and directness in communication.

What is Elon Musk's management style like, as described by former employees?

Elon Musk's management style is described as intense, cutthroat, and tireless. He is known for demanding long hours and high levels of commitment from his employees.

How did Elon Musk approach the early days of his tenure at Tesla?

Elon Musk sent the company into crisis mode to jumpstart his vision for reinventing the auto industry, emphasizing a lofty mission and rallying employees around it.

What was the impact of Elon Musk's management style on Carl Medlock's experience at Tesla?

Carl Medlock was inspired by Tesla's mission and worked long hours, sometimes losing track of personal life, but he loved what he was doing. However, he was terminated in 2013 over a misunderstanding with his manager.

Why did Garrett Reisman join SpaceX and what was his experience like?

Garrett Reisman was inspired by SpaceX's mission to make human life multi-planetary and joined in 2011. He found the environment demanding but motivating, and he left in 2018 to teach at the University of Southern California, seeking a less intense work environment.

How does Elon Musk's approach to Twitter's mission compare to his approach at SpaceX?

While the mission at SpaceX is to colonize Mars, which is seen as dramatic and inspiring, Twitter's mission of protecting free speech is important but not as world-saving, which may affect employee motivation differently.

What does Elon Musk mean by 'hardcore' in the context of his work ethic?

By 'hardcore,' Elon Musk refers to working long hours, typically 80 to 100 hours a week, with high intensity, which he expects from himself and his employees.

How did Elon Musk's approach to work-life balance affect his employees?

Elon Musk's intense work ethic often led employees to sacrifice their personal lives, including family time, passions, and hobbies, in favor of their work at the company.

What was the subject of the email Elon Musk sent to his team when preparing to ramp up production of the Model S?

Elon Musk sent an email with the subject line 'Ultra hardcore,' signaling the need for an unprecedented level of intensity and commitment from his team.

How did Elon Musk's initial actions at Twitter affect the company's workforce?

Shortly after taking over Twitter, Musk laid off approximately 50% of the staff and many employees opted to leave rather than commit to his vision for the company.

What is Elon Musk's approach to corporate hierarchy and communication?

Elon Musk avoids traditional corporate hierarchy and prefers to communicate directly with employees working on projects that interest him, bypassing layers of management.

How does Elon Musk motivate his employees to work harder?

Elon Musk motivates his employees by raising the financial stakes, setting ambitious goals, and creating a sense of urgency to achieve the company's mission.

What challenges does Elon Musk face in transforming Twitter according to the script?

Elon Musk faces challenges such as rallying a large workforce, finding the right talent, and pivoting the company to a private entity amidst an uncertain economy and social media landscape.

Outlines

00:00

🚀 Elon Musk's Intense Management Style

The first paragraph delves into Elon Musk's demanding and relentless management approach, as observed by former employees of Tesla and SpaceX. It highlights the need for brevity and quick decision-making when communicating with Musk, his tendency for early morning calls and late-night texts, and the high-energy environment he fosters. The paragraph also touches on Musk's strategy of rallying employees around a grand mission, as exemplified by Tesla's mission to revolutionize the auto industry and SpaceX's ambition to establish human life on Mars. However, it contrasts this with the less world-saving mission of Twitter, which focuses on protecting free speech. The narrative includes personal accounts from employees who have worked under Musk, sharing their experiences of the intense work culture and the sacrifices made in terms of personal life for the company's goals.

05:00

💼 Musk's Lean and High-Stakes Leadership

The second paragraph examines Elon Musk's history of streamlining company operations by reducing workforce sizes, as he did when he became CEO of Tesla and later at Twitter, where he reportedly laid off around half of the staff. It discusses the perception among employees that working for Musk signifies being part of an elite group, akin to 'special forces.' The paragraph also covers Musk's preference for a flat corporate structure, where he interacts directly with employees rather than through layers of management. Furthermore, it addresses his method of motivating employees by increasing financial incentives and the challenges he faces in steering Twitter through economic uncertainty and competition in the social media landscape. The summary concludes with insights into Musk's early stages of strategy formulation for Twitter and the advice for current employees to excel in their roles to gain his notice.

Keywords

💡Elon Musk

Elon Musk is a key figure in the video, known for his intense and tireless management style. He is the CEO of Tesla and SpaceX and has recently taken over Twitter. His approach to leadership is characterized by high expectations and a focus on mission-driven goals, which is central to the video's theme of examining his impact on the companies he leads.

💡Concise

Conciseness is emphasized in the script as a necessary communication style when interacting with Elon Musk. It means expressing something in a few words but in a clear and comprehensive manner. In the context of the video, it suggests that Musk values brevity and efficiency in discussions, as seen in the statement 'You have 30 seconds to make your point.'

💡Crisis Mode

Crisis mode refers to a state of high alert or urgency, often adopted in response to a critical situation. In the video, it is mentioned that Musk sent Tesla into crisis mode when he took over in 2008, indicating his strategy to rapidly address and reinvent the auto industry, which is a key aspect of his management approach.

💡Hardcore

The term 'hardcore' is used by Musk to describe a level of commitment to working long hours at high intensity. It is a central concept in the video, illustrating Musk's expectation for his employees to put in significant effort and time, such as '80 to 100 hour weeks', to achieve the company's ambitious goals.

💡Mission

A mission in this context refers to the overarching purpose or goal of a company. The video discusses how Musk rallies employees around lofty company missions, such as making human life multi-planetary at SpaceX or protecting free speech at Twitter. These missions are crucial to motivating his workforce and driving the company's direction.

💡Cutthroat

Cutthroat describes a management style that is highly competitive and ruthless. The video highlights Musk's reputation for this style, as he is known to make swift and significant changes, such as layoffs, to streamline his companies and maintain a competitive edge.

💡Tireless

Tireless refers to someone who works without getting tired or showing signs of fatigue. The video portrays Musk as a tireless leader who leads by example, often working long hours and even sleeping at the office, which sets the expectation for his employees to exhibit a similar work ethic.

💡Leaner

Being 'leaner' in a business context means reducing the size or complexity of an organization to become more efficient. The video mentions Musk's history of making his companies leaner by cutting the workforce, which is part of his strategy to streamline operations and focus on key talent.

💡Subscription Revenue

Subscription revenue is income generated from customers who pay a recurring fee for a service. In the video, Musk emphasizes the importance of subscription revenue for Twitter's survival, indicating a shift in the company's financial model to adapt to economic challenges.

💡Meritocracy

A meritocracy is a system where the most capable individuals are chosen for positions of power or responsibility. The video suggests that Musk values meritocracy by stating that employees who prove themselves at SpaceX are rapidly advanced, reflecting his belief in rewarding talent and performance.

💡Economic Downturn

An economic downturn refers to a period of negative economic growth. The video discusses Musk's concern about Twitter's ability to survive an upcoming economic downturn without significant subscription revenue, highlighting the challenges the company faces in a potentially contracting ad market.

Highlights

Elon Musk's communication style requires conciseness and speed when conversing with him.

Musk is known for late-night texts and early morning conference calls.

Former employees share their experience of needing to be energized for meetings with Musk, often with espressos.

Musk's management style is described as intense, with high expectations for employees to make their point within 30 seconds.

Tesla's 2008 crisis mode under Musk's leadership jumpstarted his vision for the auto industry.

Musk's approach to management involves rallying employees around a lofty company mission, as seen at Tesla and SpaceX.

Carl Medlock joined Tesla in 2009, inspired by the brand and mission, working 80-100 hours a week.

Garrett Reisman joined SpaceX in 2011, motivated by the mission to make human life multi-planetary.

The mission at Twitter, focused on protecting free speech, is not as dramatic as Musk's other ventures.

Musk's challenge at Twitter is to define the stakes and rally employees around a less dramatic mission.

Musk's 'hardcore' work ethic is a term he uses to describe working long hours at high intensity.

In 2012, Musk sent an 'Ultra hardcore' email to his team, signaling a new level of intensity.

After taking over Twitter, Musk sent a similar 'hardcore' email, but many employees chose to leave rather than commit to his vision.

Musk leads by example, often sleeping at the office and investing heavily in his companies.

Musk's approach is to do anything required to keep his businesses competitive, including personal financial sacrifices.

Employees describe Musk as inspiring but also exhausting and mercurial, with high turnover due to his demanding nature.

Musk is known for making companies leaner by cutting workforces, as seen when he became CEO of Tesla and later at Twitter.

Former employees say working for Musk instills a feeling of being part of an elite 'special forces'.

Musk avoids traditional corporate hierarchy and communicates directly with employees working on projects of interest.

Musk motivates employees by raising the financial stakes and the need for rapid innovation.

Twitter faces economic uncertainty and the need to generate more revenue, similar to Tesla during the Great Recession.

Musk warns that without significant subscription revenue, Twitter may not survive the economic downturn.

Musk is in the early stages of setting up his strategy for Twitter and finding trustworthy people to help transform the company.

At SpaceX, rapid advancement was possible for those who proved themselves capable and innovative, especially on a technical level.

Advice for Twitter employees is to focus on their job and avoid drawing attention to themselves in the current climate.

Transcripts

- If you're talking to Elon or you wanna have a conversation

with Elon and you get that opportunity to talk to Elon,

you need to be concise, quick.

- There's definitely 2:00 AM texts

and 6:00 AM conference calls.

- When I used to go into meetings with him,

I used to always stop by our barista

and I would get a couple espressos and chug that down

and then go into the meeting.

- He has never said this, but I've watched it.

You have 30 seconds to make your point.

- [Narrator] Elon Musk is known

by his employees to be intense.

When he took over Tesla in 2008,

he sent the company into crisis mode to jumpstart his vision

of how to reinvent the auto industry.

Now he appears to be using

a similar management playbook to remake Twitter.

We spoke with former Tesla and SpaceX employees

to better understand how Musk became known

for his cutthroat and tireless management style

and what that may mean for his future employees.

(audience cheers)

Step one for Musk is to rally employees

around a lofty company mission.

(tool bangs and whirs)

It's exactly what inspired Carl Medlock

to join Tesla in 2009.

- We were all so excited about the brand.

I mean, we were all working 80, 100 hours a week.

We kinda lost track of our families, our passions

our hobbies, and all that stuff,

but we loved what we were doing.

I never once had Elon or saw Elon do

a rah-rah meeting like that.

- [Narrator] Medlock now runs

his own electric vehicle repair shop in Seattle.

He said he was terminated from Tesla in 2013

over a misunderstanding with his direct manager.

Garrett Reisman was similarly inspired

by the mission of SpaceX and joined in 2011.

- It's a very demanding environment,

but by and large it's not because of him cracking the whip.

You know, making human life multi-planetary,

getting to Mars, having a colony on Mars.

It's something that motivates

pretty much everybody there at SpaceX.

- [Narrator] Reisman left SpaceX in 2018

to teach astronautical engineering

at the University of Southern California.

He said that after seven years at SpaceX,

he wanted to work somewhere less intense.

Yet at Twitter, the mission isn't exactly saving the world.

- They are talking about protecting free speech,

which of course is important,

but it is not as dramatic as trying to go to Mars.

- [Narrator] Tim Higgins is a tech and automotive reporter

for the "Wall Street Journal" and author of "Power Play,"

a book that traces the rise of Tesla and Elon Musk.

- Well, the challenge that Elon is going to have

at Twitter is what are the stakes?

- [Narrator] Neither Elon Musk nor Twitter

responded to requests for comment.

The company's mission is what Musk hopes

will drive people to be hardcore,

a term he uses to describe working long hours

at high intensity.

- You just have to put in, you know,

80 hour, 80 to 100 hour weeks, every week.

- I would see people at 2:00 in the morning

'cause we had finished up an event

and we were all still energized

'cause we were having such a good time.

- [Narrator] And Musk has used this idea of hardcore

to rally his team over the years

as they approach hard challenges.

For example, in 2012, when Tesla was preparing to ramp up

production of the Model S luxury sedan,

Musk sent his team an email

with the subject line, "Ultra hardcore,"

telling them to prepare for a level of intensity

that most of them had never experienced before.

About three weeks after taking over at Twitter,

Musk sent a similar email,

but hundreds of employees opted to leave the company

rather than sign up for Musk's vision of Twitter 2.0.

- The challenge here is Elon has inherited a huge workforce,

and he has to convince them to be on Team Elon.

And we're seeing him try to go through those ranks of people

to find the talent that he's going to need

to pivot the company to a private Twitter, and it's messy.

- [Narrator] Musk himself leads by hardcore example.

- I sleep on the couch over there.

Last time I was here I actually slept, literally,

on the floor 'cause the couch was too narrow.

- I showed up at work early one day,

and it was just me and him and one security guy

in the entire 5.5 million square feet.

And I didn't know he was there, right?

And at the factory,

there's walkways and safety areas and stuff like that.

But when nobody's there,

I just got on a bicycle, riding around,

and here Elon is asleep on this engineer's desk.

- [Narrator] In November, Musk tweeted that he was sleeping

at Twitter's offices in San Francisco.

And it's not just his time, but his money.

- How much did you put into this company?

- (exhales sharply) Oh, man, about $55 million.

- In 2008, when Tesla was at its darkest moment

and he put in his personal last millions of dollars

to fund it, he was even, you know, couch surfing

in Menlo Park and paying my business expenses

with personal credit card debt, right?

His approach is to do anything required

to keep his businesses competitive,

and he lived that every single day when I worked for him.

- [Narrator] Konrad left Tesla in 2011

for Renault Nissan Mitsubishi.

- People that I've talked to with Elon

talk about how he in one hand is incredibly inspiring,

but on the other hand a lot of people will say

he was also exhausting and mercurial,

and after a while they just couldn't keep up with him.

- [Narrator] There is also a history of employees

at Tesla and SpaceX alleging misconduct at the companies.

Musk is also known to quickly make his companies leaner.

When he became CEO of Tesla,

he cut about 20% of the workforce.

About a week after he took over Twitter,

Musk laid off roughly 50% of the staff

according to a document seen by "The Journal."

And people familiar with the matter estimated

that likely over 1000 have resigned.

Former employees have said

that this cutthroat approach instills in them this feeling

that anyone working for Musk is the best of the best.

- Back in the day at Tesla, Elon would often say

that people who work for him are special forces.

- He wants to hire a key engineer who in his mind

has way more value than, say, a hundred engineers,

and to deploy those top talent on the hardest problems,

and be able to move faster

and not have the same kind of level of bureaucracy.

- [Narrator] Former employees have said

that Musk avoids traditional corporate hierarchy.

- If Elon was interested in something you were doing,

he would come and talk directly to you.

He's not gonna go through a bunch of different layers

of management and have the information filter up.

- [Narrator] Musk also motivates employees to work harder

by raising the financial stakes.

- When Elon became CEO of Tesla,

the economy was in shambles.

It was the Great Recession and there was huge questions

about whether people were gonna wanna buy a luxury car,

and not just a luxury car, a luxury car that was electric.

(car door slams)

Similarities to Twitter today,

we've got an uncertain economy.

The company needs to start generating more money.

It has a huge debt load.

It has to find its place in this social media world

that's under a lot of pressure

as the ad market, it kind of contracts.

- [Narrator] In November,

Musk wrote in an email to Twitter employees

that without significant subscription revenue

there is a good chance Twitter will not survive

the upcoming economic downturn.

Musk is still in the early stages of setting up his strategy

for Twitter and finding people he trusts

to help him transform the company.

- At SpaceX, if you proved yourself to be capable,

innovative, especially on a technical level,

then that led to very, very rapid advancement

throughout the company.

- If I were an employee at Twitter right now,

I'd probably just do your job.

Don't let him know your name.

(lighthearted music)