Do yourself a favor and get your hands on Walter Isaacson’s biography of Elon Musk. If you’re into understanding the minds shaping our world, you’ll be hooked.
In statistics, the mode represents the most frequently occurring value. It’s a fitting metaphor for Elon Musk’s core business principles. For Musk, these guiding philosophies are as fundamental as any statistical truth, distilled into five key tenets and eight supporting corollaries.
As humans, we often take ourselves too seriously, assuming that decision-making is an exclusively human challenge. Yet, like us, computers face limitations in space and time. That’s a reality computer scientists have been grappling with for decades. Algorithms, however, handle these challenges with remarkable efficiency. Whether we realize it or not, we, too, rely on systematic approaches to problem-solving in our daily lives. We just don’t always recognize them as such.
Here’s one algorithm that has much to teach us.
Before we dive in, keep this in mind: the true power lies in adapting these ideas to your own style.
Learning isn’t just about absorbing knowledge; it’s about making it work for you.
While there may be nothing entirely new under the sun, Musk’s fearless innovation and relentless drive to push boundaries have brought something genuinely fresh into the tech world since he first set foot in the Bay Area.
Musk’s algorithm is the product of a mind deeply influenced by military precision, resourcefulness and an unorthodox approach to problem-solving. It is driven by a deliberate intent and commitment to uncovering the facts.
The Algorithm is a distilled blend of hard-earned lessons from the intense production surges at Tesla’s Nevada and Fremont factories. As Musk himself says,
“I became a broken record on the algorithm, but I believe repeating it to an annoying degree is actually helpful.”
Whether you’re running a bakery or launching the next big startup, Musk’s logic is both adaptable and valuable.
Trust me, you won’t regret it. And who knows? You might even find your own way to take these principles further.
Let’s dive in!
Musk started his first business at 12, selling his software “Blastar” for $500. So far, Elon Musk cofounded
Logic: Always challenge requirements, especially those from smart individuals. As they often go unchallenged.
Actions:
Logic: Eliminate unnecessary parts or processes. Reducing complexity upfront is essential.
Action: Remove as much as possible.
Hint: If you don’t eventually add back at least 10%, you haven’t cut enough.
Logic: A common mistake is to simplify and optimize a part or a process that should not exist.
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Action: Implement this after step two.
Logic: Every process can be speeded up.
Action: Implement this step only after completing the first three: Question every requirement, eliminate unnecessary parts or processes, and simplify and optimize.
Hint: At Tesla, Musk acknowledged wasting time speeding up processes that should have been eliminated.
Logic: Every process can be speeded up.
Action: Automation should come last.
Hint: Musk shares that the mistake in Nevada and Fremont was automating too early. They should have first questioned the requirements, deleted unnecessary steps, and resolved the bugs.
At Fremont, surrounded by 1,200 robots on each assembly line, Musk came face-to-face with the perils of over-automation.
The fix? Musk took matters into his own hands, walking the factory floor with a can of orange spray paint. As he moved through the maze of machines, he’d ask, “Go or stay?” If the answer was “Go” he marked it with an “X” and the workers knew it was time to remove it.
The algorithm was often paired with these additional corollaries:
The tech world evolves at a staggering pace, and to stay relevant and effective, you need to walk the talk.
Are you a software manager? Spend at least 20% of your time coding.
Are you a solar roof manager? Participate in installations on the ground.
Without this, they are like a cavalry leader who can’t ride a horse or a general who can’t use a sword.
Musk believes it can be difficult for people to challenge each other’s work because there’s a natural reluctance to throw a colleague under the bus. But he emphasizes that this mindset needs to be avoided.
Just don’t be confident and wrong.
When problems arise, don’t just rely on meetings with your managers. Instead, do a skip-level meeting with the team members directly below them.
Why does this matter? Engaging with those on the front lines uncovers insights that are often missed by the typical management layers.
Skills can be taught. Attitude changes require a brain transplant.
Everything else is a recommendation.
Remember, the real magic happens when you apply these insights to your own unique context.
To all the founders out there, I wish you nothing but the best.
May your endless meetings and pitch decks magically turn into overnight successes and unicorns. 🦄 💫
Cheers!
Meet Nihal:
Hey there! I’m Nihal, an engineer turned product strategist with a strong background in B2B dynamics and a proud Included VC Fellow. With entrepreneurial roots and work experience across 14 countries, my focus is on helping founders build products and teams that matter. Curious about the mind behind the keyboard? Let’s connect — drop me a line!
Fun fact: I launched my first business at just 12 years old.
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