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Elon Musk ruthlessly cleaned house of any Tesla workers who disagreed or got in his way, a new book says

 

A new book details numerous instances where Elon Musk appears to “rage-fire” employees.

Tesla CEO Elon Musk.
  • The CEO created an environment where workers who disagreed with him were swiftly ousted, the book says.
  • In the past, Musk has denied allegations that he goes on such firing sprees.
  • See more stories on Insider’s business page .

Tesla CEO Elon Musk has denied allegations in the past that he has a propensity for rage firing people , but a new book tells a different story.

“Power Play: Tesla, Elon Musk, and the Bet of the Century,” by The Wall Street Journal’s Tim Higgins details numerous instances when the CEO appeared to fire employees and contractors out of sheer anger.

The book, released on Tuesday, reveals that Musk developed an atmosphere of fear in Tesla and SpaceX – an environment where the billionaire had a reputation for exploding at top executives and employees on the assembly line alike.

In 2006, ahead of Tesla’s first Roadster reveal party, Musk had his head of marketing Jessica Switzer, as well as a public relations firm, ousted because he was unhappy with Switzer’s decision to spend money on marketing. Higgins said Musk thought his name alone would be enough to incite interest in the vehicle.

Shortly after the executive’s departure, Musk threatened to fire another PR which was later hired to take on the Roadster reveal, citing his anger over a New York Times story on Tesla that did not mention Musk.

“I was incredibly insulted and embarrassed by the NY Times article,” Musk emailed the firm. “If anything like this happens again, please consider [your] relationship with Tesla to end immediately upon publication of such a piece.”

Mark Goldberg, a Morgan Stanley banker that helped take Tesla public in 2010, told Higgins that Musk repeatedly threatened to fire bankers from Morgan Stanley and Goldman Sachs before Tesla’s IPO launch in 2010.

“I don’t have time for this,” Elon Musk reportedly yelled during an episode . “I’ve got to launch the f—— rocket!”

Musk’s fury caused several executives to leave the company, Higgins said. Peter Rawlinson, the executive leading the development of the Model S, left Tesla after a series of spats with Musk. Musk put pressure on CFO Deepak Ahuja and Rawlinson’s key deputy Nick Sampson to bring Rawlinson back to the company. When they couldn’t, Musk fired Sampson in a fit.

Later, Tesla found itself without the heads of its manufacturing department ahead of the Tesla Model 3 launch due to Musk’s ire. The CEO went into a rage during a factory visit over issues with the Model X’s window. When a worker on the assembly line proposed a solution, Musk lit into the worker’s manager.

“This is totally unacceptable that you had a person working in your factory that knows the solution and you don’t even know that,” Musk reportedly said before firing the head of the factory.

Higgins writes that when an employee disagreed with the CEO they were often fired. For example, a paint shop manager was fired on the spot when he told Musk his production goals were not possible, and Kate Pearson, an executive in charge of delivery operations, was ousted for saying it was not feasible to hit Tesla’s delivery goal of 100,000 during the quarter.

By 2017, Musk began flying to Tesla’s Gigafactory to frequently address issues that often led to verbal spats. Longtime Tesla employees told Higgins Musk’s fury was unpredictable and often focused on public humiliation.

“He’d always been quick to fire people, but it had historically been through managers, not in person,” Higgins wrote. “Now it might be whomever he came across on the factory floor.”

Tesla did not respond to Insider’s request for comment. Ahead of the book’s release, Musk disputed some of the claims in Higgin’s book, calling them “false” on Twitter. Last month, Musk denied assertions he rage-fires employees, saying he gives “clear and frank” feedback.

The Evolution of Elon Musk: The Good, The Bad, and the Ugly

As someone who considers themselves up-to-date with the latest news and trends on everything design and innovation, I was taken aback when I saw a Facebook post back in December. My friend was calling out Elon Musk for being a jerk (and no it wasn’t one of the those Facebook friends that rants about everything). He was referring to a Twitter battle between Musk and Jarrett Walker, a public transit policy consultant with a PhD in humanities.

Their Twitter feud began because of Elon’s comments at an AI Conference. Musk had called out public transportation for being a “pain in the ass” and that you could end up sharing a ride with someone “who might be a serial killer.” This led to a series of tweets by Walker aimed at Musk, saying that Musk wanted to create a public transportation system designed for the protection of the elite. To which Musk simply responded, “You’re an idiot.”

Up until this point, I had always thought of Elon Musk as a great leader and an innovation guru. I had nothing but respect for him. But these comments really shook me. After a quick Google search, I saw a couple of other articles that cast him in a negative light. This made me wonder if I was the idiot for thinking he was a great guy all along. It also made me realize I didn’t really know that much about him. This left me with one burning question: Is he a jerk or an innovative leader that we should aspire to be?

With Christmas quickly approaching, I added Elon’s biography, Elon Musk: Tesla, SpaceX, and the Quest for a Fantastic Future, to my wishlist. I decided that this internal debate could only be answered with thorough research. What follows is my quest to answer this question. During my journey through Ashlee Vance’s incredible book, my thoughts on Musk would swing back and forth seeing the good, the bad, and the ugly sides of him. So I decided to break down Musk’s life into 6 stages highlighting each of these different sides. Only after seeing all parts was I able to come to a conclusion to this question.

Elon Musk Biography.png

Little Kid Musk

  • The Good: As a boy, Elon had an insatiable appetite for learning. He would often read a book a day. His most remarkable achievement came after he convinced his dad to buy him a Commodore VIC-20 (an old ass computer). According to the manual it’s supposed to take about 6 months to get through the all of the BASIC lessons. He stayed up for 3 straight days and finished the whole thing. Then he designed an entire video game on it; the source code of which was published in a magazine netting him $500.
  • The Bad: He was teased and bullied a lot growing up. Sometimes this went as far as physical violence. On one occasion he was beaten up so badly that he blacked out and was hospitalized for an entire week.
  • The Ugly: His dad seems to be darkest and most private aspect of his life. It appears that he may have been abusive – maybe not physically but at least mentally. While Musk talked to the author about most topics, he refused to talk about his father saying “He’s good at making life miserable. I don’t know how someone becomes like him.”

First Business Musk

  • The Good: He left South Africa on his own without anything or anyone. He went to Canada where he stayed for a while – without a permanent home – until his brother met up with him. They made their way to Palo Alto and started their first business. Zip2 was basically mapquest before mapquest (which was Google Maps before Google Maps). It would end up selling for $307 million. Cha-ching.
  • The Bad: While Elon and his brother were able to create a successful company, they had problems with their investors’ powers. The investors forced the product towards Media companies as more of a business directory instead of the B2C direction that Musk had hoped. To make matters worse Elon also experienced his first canceled merger catastrophe (#foreshadowing).
  • The Ugly: Less than a decade after being essentially homeless in Canada, Elon was now Silicon Valley’s latest rich guy. It’s here we see the first signs of Elon potentially turning into a jerk. He purchased one of only 62 McLarens (really expensive car) in the world. He drove it around so much in the Valley that he started to get a dick reputation.

The Young and Rich Musk

  • The Good: Aside from the McLaren purchase, Elon poured all of his money into his next venture, a company that would change the banking industry. At the time people said he was crazy and that consumers would never trust the security of the internet for online banking. His company, X.com, was more successful than anyone had ever thought possible. He even beat out his biggest competitor, PayPal, started by Peter Thiel as they agreed to merge together with Elon becoming the largest shareholder.
  • The Bad: ‘Wait, I thought Elon founded Paypal?’ – you might be thinking to yourself. Well, while Elon was on a plane beginning his honeymoon one of the nastiest Silicon Valley coups of all time occurred. After the plane landed he headed straight back to try to save it only to be forced out as CEO. They later rebranded as PayPal.
  • The Ugly: After another horrible merger process, Elon finally had some time to step back and go on his honeymoon. However, he ended up getting malaria in South Africa and almost died because of it. One doctor said he was a day away from dying. After 6 months and 45 pounds lost, he survived. This was just in time for eBay to purchase PayPal for $1.5 billion – netting Elon $250 million. Cha-ching! While this might sound like a great thing, a book entitled The PayPal Wars published right after the deal that painted Elon as the villain of the entire company.
gray spacecraft taking off during daytime
Photo by SpaceX via Unsplash

Starting SpaceX Musk

  • The Good: After his near-death experience, Elon revisited his childhood dreams of going to Mars. He visited NASA’s website one day and found no plan or even mention of going to Mars. Taken aback, he headed to Russia to see if he could buy a rocket himself. After being pushed around with ridiculous prices, Elon dove into books studying how rockets are built. On their plane ride home from Russia, he declared he would build the rocket himself with a spreadsheet detailing how to do it. This was how SpaceX was born.
  • The Bad: While SpaceX was in full startup mode, Elon’s first son, Nevada, was born. Unfortunately, he died of sudden infant death syndrome.
  • The Ugly: At SpaceX Elon quickly gained a reputation as a staunch leader. One employee said  “If Elon was not happy, you knew it. Things could get nasty.” Even one of SpaceX’s greatest employees, Steve Davis, experienced Elon’s lack of caring. Davis was once assigned a task that seemed so impossible that another engineer said, ‘any other engineer at any other aerospace company would never have even attempted’. The assignment was to take a part that was quoted for $120,000 and built it on Elon’s proposed budget of $5,000. Davis spent nine months and poured his life into it. In the end, he was able to able to make it for only $3,900! Davis sent Elon an email detailing his greatest accomplishment to which Elon simply replied ‘Ok.’

‘Founding’ Tesla Musk

  • The Good: Elon had always seen a future of all-electric cars. So when Martin Eberhard and Marc Tarpenning approached Musk to become the first investor in a company called Tesla, Elon was all in. He wanted the car to be an image of the sustainable future. He wanted it to be a luxury brand and not some ‘silly looking Prius’. Because of that, he had a lot of say with setting up the company in Silicon Valley (as opposed to Detroit) and with the visual design of the car.
  • The Bad: As soon as Tesla created their first workable concept car, they decided to have a big press event. The event was a success with 30 high profile clients preordering the car for $90,000. The bad news for Elon was that in the press release he wasn’t listed as a founder. To make matters worse, a NY Times article about the company also left Elon Musk out. He was pissed.
  • The Ugly: As Tesla was beginning to work on fulfilling their first round of pre-ordered cars, things weren’t going so well. The parts for the car were way too expensive and everything was behind schedule. Musk was not happy, so it was his turn to plot a coup. He called for the board to replace Martin Eberhard as CEO. They agreed and the original founder of the company was gone. After an interim CEO, Musk took over in 2008.
Tesla
Photo by Matt Henry via Unsplash

Leading SpaceX, Tesla, Hyperloop, SolarCity, and the Boring Company, Musk

  • The Good: By this point, Elon has become an expert in leading multiple companies under extreme pressure all at once. In 2008 things were not looking great for Tesla and SpaceX. By Musk’s calculations, he only had enough money to save one company. Instead of panicking, Elon was able to keep his cool for long enough for SpaceX to win a contract to become NASA’s official supplier for the ISS. A similar ‘Tesla might go out of business’ situation happened again in 2013. It was so bad that Elon actually had a handshake deal with Google for them to buy and save Tesla. This never happened as Tesla’s sales team was able to beat projections and their stock went through the roof.
  • The Bad: Elon’s leadership style continued to stay fierce (to say the least). To crank up the pace of the Tesla Model S design, they had two sets of employees working 24 hours a day. To quote the author, “It’s just never enough for Musk.” For example, in 2010 SpaceX had just successfully launched their Dragon capsule; and right before the party Musk called in his top executives to yell at them (in tuxes in front of their significant others) because one of the parts for a future rocket was behind schedule.
  • The Ugly: Since managing multiple companies at once, his ugly side definitely reached its ugliest heights. Elon got divorced and his ex-wife, Justine, wrote many nasty articles on her blog about him. He was sued by the original founder of Tesla, Martin Eberhard, for his ouster from the company. And the crowning jewel of his ugliness came from the treatment of his longtime executive assistant, Mary Beth Brown. She basically did everything for him at every company. She never left his side. So one day she asked to get paid like an executive. He told her to take a 2-week vacation and that he would try to see if he could do her job. When she returned he told her he didn’t need her anymore. [Note: He did deny this on Twitter 2 years after the book was published.]

THE UNIVERSAL THEORY OF MUSK

Throughout Elon’s evolution, I struggled to find one event that would define him. There are so many ups and downs that I couldn’t just point to one moment and say ‘Yep, he’s a jerk because of this.’ or ‘Yep, he’s someone we should aspire to because of that.’ I had to look at the totality of his life in order to make sense of it all.

What was clear throughout the book is that Elon operates differently than most other successful people today. Jeff Hammerbacher, an early Facebook engineer, claims that “The best minds of our generation are thinking about how to make people click ads.” And Elon agrees with him saying “I think there are probably too many smart people pursuing internet stuff, finance, and law. That is part of the reason we haven’t seen that much innovation.” But it’s this statement that reveals Elon isn’t after these little innovations. He’s always in pursuit of his larger purpose.

I would like to die thinking that humanity has a bright future. If we can solve sustainable energy and be well on our way to becoming a multiplanetary species with a self-sustaining civilization on another planet… I think that would be really good. – Elon Musk

In the final paragraph of the biography, the author ends with “I asked Musk directly just how much he was willing to put on the line. His response? Everything that other people hold dear. I would die on Mars. If my wife and I have a bunch of kids, she would probably stay with them on Earth.”

Seeing Elon in this light connects a lot of dots. The objective of the video game he created as a kid was to save the world from an alien space freighter. In college, he wrote papers detailing his plans for sustainable energy in order to ensure that “civilization can continue to progress.” Even the founding all of his businesses were not driven by lucrative desires, but rather he was working to create a system of interconnected companies that can help our species in the short term as well as in the long term.

So with this universal understanding of Musk where does that leave us with our initial question?

It leads me to conclude that Elon cares about one thing above all else: saving our species. He cares so much about this that it doesn’t matter if people think he’s a jerk. To him, the greater good is more important that one individual’s feelings (even his family’s). So at the end of the day, I have to say that Elon Musk is a jerk, but he’s also an innovative jerk that we should aspire to be.

To be an Innovation Legend, do you have to be an A**hole?

Elon on Stage
My View of Musk As the Crowd Goes Crazy at SXSW 2018

If you’ve ever been to the SXSW Conference, you know it’s full of many surprises. This year none was bigger than the announcement that Elon Musk would be speaking. As soon as the email went out, I knew I would wake up as early as I had to in order to get tickets to see him talk. It didn’t matter if it meant waiting in line for hours or that I would miss the Melinda Gates’s keynote (that was poorly scheduled right after his). And I wasn’t the only one that felt this way.

When I got in line – 4 hours before he was scheduled to speak – people were already wrapped around a couple sides of the Austin Convention Center. There was a clear feeling of excitement in the air. And let me tell you, this excitement wasn’t for nothing; he delivered. It was an inspirational talk that covered everything from his biggest failure to his announcement that SpaceX is currently building “the first Mars interplanetary ship” and that they’ll “be able to do short flights, sort of up-and-down flights, probably sometime in the first half of next year.” (Mars here we come!!)

After the talk, one thing was clear — Elon Musk is having a moment. He is no longer just an entrepreneur with some successful companies. He’s reached a Steve-Jobs-like status as one of America’s great innovators.

content_com.google.android.apps.bigtopattachmentsdownloads3d6867307922ec07cb6ce89bba13f453attachmentsd_0_0_4c738d03_4a738556_fb880c26_3ba6f1ea_ee9fde5fSteveJobs
Photo via Flickr CC

As soon as this thought crossed my mind, dots began to connect between Jobs and Musk. Having read both of their incredible biographies (Walter Isaacson’s on Jobs and Ashlee Vance’s on Musk), it’s obvious to me that they’ve achieved far more than any of us mere mortals. They’re the only people of our generation who have been able to significantly alter multiple industries (personal computers, music, and phones for Jobs; and space travel, earthly transportation, and sustainable energy for Musk).

And their biographies reveal that they’ve been able to achieve this because of their relentless pursuit of their powerful personal purposes. Jobs was always trying “to make tools for the mind that advance humankind.” While Musk is currently trying to save our species by helping us create “a self-sustaining civilization on another planet.”

However, if you read my previous article detailing Elon Musk’s life, you know there’s a dark side to him; and this is where the dots that my mind was connecting between Musk and Jobs gets scary. While the companies that these two men founded have been widely successful, their employees haven’t always had the nicest things to say about them. Just consider some of these quotes:

“If Elon was not happy, you knew it. Things could get nasty.”  “He can be a downright liar about when things need to get done. He will pick the most aggressive time schedule imaginable assuming everything goes right, and then accelerate it by assuming that everyone can work harder.”

“[Jobs] had this uncanny capacity to know exactly what your weak point is, know what will make you feel small, to make you cringe.”  “He had these huge expectations, and if people didn’t deliver, he couldn’t stand it. He couldn’t control himself. It had a hurtful effect. It created a fear factor.”

While it might be easy brush off these comments as just a couple of disgruntled employees, there are plenty of other examples that point to a larger pattern of both of these guys being, well, assholes. Which leads me to the ultimate question that I’ve been struggling with since Elon’s talk.

Do you have to be an a**hole to be as innovative as Jobs and Musk??

I’m not going to lie; this hasn’t been an easy question for me to grapple with. Even just thinking of them as jerks didn’t really feel great to me (I don’t want other people reading this to think I’m being a jerk). But it kept nagging at me. Both of the greatest innovators of our generation are equally as inspiring as they are kind of assholes to the people around them.

After giving my thoughts some time to percolate, I believe there are three reasons that ultimately lead me to answer this question optimistically.

  • Haters gonna hate. When you try to change the world in such a profound way, you’re always going to have people that view what you’re trying to do as bad simply because it’s different. As an innovator, this different view of the world can sometimes get you a bad reputation. You’re telling people that current world isn’t good enough. For Jobs and Musk though, they ultimately had larger purposes that are both innately good so I have to conclude that part of their asshole appearance was just because they were trying to change the world.
  • Everyone loves drama. Because we live in a reality TV world, drama sells. For both Jobs and Musk, this drama has made them more popular and thus has made their innovation status reach new heights. I certainly can’t argue that if both Jobs and Musk were the nicest guys in the world that they wouldn’t be viewed as great innovators. But I do think that because they have a bit of an asshole side to them that the media loves to pay attention to them and this makes us talk about how great they are. I think people like Woz, Gates, Brin, and Page don’t get as much love when it comes to innovation because they stay out of the limelight.
  • There’s no ‘I’ in team. We’ve reached a point where the innovation challenges facing our society can’t be accomplished alone. This means that anyone looking to become an Innovation Legend must have a great team and must be able to motivate them. Both Jobs and Musk clearly chose to lead with clenched fists and sheer force. But I fundamentally disagree that a great leader can’t also be genuinely nice. Just because both of them had more of a harsh way of treating their employees doesn’t mean that we can’t treat our team with respect in order to accomplish anything we set our minds to.
Musk and Jobs
Photo 1 and Photo 2 via Flickr CC

So where does this leave me? It leads me to conclude that no, you don’t have to be a jerk to become an innovation legend. Some of the drama around Jobs and Musk certainly helped elevate their status. And some of the hate they get is also unjustified simply because they want to change the world. To be honest, though, it kind of stinks that both of their management styles have been so harsh that this question even has to be pondered. It doesn’t feel great to be inspired by guys that don’t always treat their teammates with respect.

Why I’m still inspired by both of them is because their overall purposes are focused on helping millions of people improve their lives. They feel at times in order to achieve this that they have to be jerks to a particular person at a particular moment in the innovation process. It’s all for the greater good.

As I sit here finishing this article, I am even more inspired than when I first started. I believe there is still another level of legendary innovator status yet to be reached. If we can have an inspirational purpose at the same level of both Jobs and Musk but also have a different management style full of love and compassion than I think our teams can achieve even greater things. I can’t wait to see the day that someone can attain that level. To infinity and beyond!

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