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Sunday, October 23, 2022

Elon Musk’s Leadership Style

Elon Musk’s Leadership
Elon Musk is the CEO of SpaceX and Tesla. Musk is the wealthiest person in the world according to both the Bloomberg Billionaires Index and Forbes' real-time billionaires' list.

Elon Musk’s personality characteristics affected his leadership style as he is often described as a micromanager, and he has called himself a "nano-manager". He also doesn't make formal business plans; instead, he prefers to approach engineering problems with an iterative design methodology and tolerance for failures.

His relationship with employees isn't that good for example he has forced employees to adopt the company's own jargon. Also, His handling of employees - whom he communicates directly with through mass emails - has been characterized as "carrot and stick", rewarding those who offer constructive criticism while also being known to impulsively threaten, swear at, and fire his employees.

Elon Musk is an Autocratic Leader as he is task-oriented more than people-oriented (High in Task – Low in People). He is very impersonal as he expects his employees to work for long hours, sometimes 80 hours per week, which most employees are aware of and willing to meet the demands, while a few have left because of it. He often fires employees in sprees, such as during the Model 3 "production hell" in 2018, when Musk slept on the factory floor to set an example for his workers. In 2022, Musk revealed plans to fire 10% of Tesla's workforce, due to his concerns about the economy. That same month, he suspended remote work at SpaceX and Tesla and threatened to fire employees who do not work 40 hours per week in the office. Also, after Musk insisted on branding his vehicles as "self-driving", he faced criticism from his engineers for putting customer lives at risk, with some employees resigning in consequence.

I’ve admired the decision-making aspect of Elon Musk’s leadership approach as He insisted on vertical integration causing his companies to move most production in-house, and this resulted in saved costs for SpaceX's rocket, and he has also launched ambitious, risky, and costly projects against his advisors' recommendations, such as removing the front-facing radar from Tesla Autopilot. At the same time, I've criticized him because of his callousness to his employees.

In the end, Elon Musk is an effective and successful Leader as his leadership style has led Tesla to success, but he may face future threats related to candidates' attraction to his business.

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Elon Musk’s Leadership Style

Elon Musk is the CEO of SpaceX and Tesla. Musk is the wealthiest person in the world according to both the Bloomberg Billionaires Index and ...