The Musk Companies: Redefining the Pace of Innovation
The Speed of Change
What's not widely known is the shocking aspects of how Tesla operates that are surprising even to established major players in the industry. One way to determine which automakers will succeed in the rapidly changing electric vehicle revolution is to evaluate their speed of innovation and ability to respond to challenges.
Joe Justice, an expert in change management who has worked at both Tesla and Toyota, explains that the key difference lies in the fundamentally different approach to business operations. While Toyota is famous for its lean manufacturing and agile methodology, the Musk companies have taken it to an entirely new level.
The level of nano-management by Elon Musk, where every hire at Tesla has to go through him personally, is completely alien to traditional corporations. This hands-on approach, combined with the passion of the chief engineer, has resulted in a pace of innovation that is unmatched.
Justice explains that the Musk companies are able to make changes across different domains in seconds, whereas traditional companies are siloed and resistant to ripple-effect changes. This allows Tesla to introduce products with more innovation in a decade than any other company.
The business fundamentals of the Musk companies are staggering. While Toyota's lean manufacturing approach famously reduced costs, Tesla is now able to manufacture vehicles at nearly 8 times the profit margin of Toyota. This is a result of the radically different work style and the use of digital self-management and mob AI.
Justice describes how teams of 3-5 people can automate and test work at the speed of a single person, constantly improving rate, quality, and customer satisfaction. This exponential growth in efficiency is what's driving Tesla's rapid ascent, leaving traditional automakers struggling to catch up.
The introduction of the Tesla Bot is another area where the Musk companies are pushing the boundaries. Justice sees the Bot as an attempt to replace human labor on a broad scale, similar to how AI is disrupting various industries. The crisis of self-worth and job identity that this will create is something most companies are not prepared for.
However, Justice believes that the Musk companies' ability to execute rapidly and with high quality when inspiration strikes will give them a significant advantage in this domain as well. The compounding effect of digital self-management and mob AI will allow the Tesla Bot to learn and perform tasks at a pace that traditional companies cannot match.
Justice's conviction in the long-term value of the Musk companies has only grown stronger. He believes that the capabilities these companies have built are so dramatically more epic that they could effectively buy out the largest automakers today, even if not in a full cash transaction.
The Musk companies' relentless pursuit of growth and innovation, combined with their unique operational approach, suggest that their dominance will only continue to expand. As Justice says, "the chips are all in the game," and investors who can ride this wave of exponential growth stand to reap significant rewards.
This is facts ma man, speed of innovation is one fo the biggest ways to know which will succeed. That's why I'm always happy to see Inleo changing so fast, no wonders it's the biggest on Hive
Part 1/5:
The Musk Companies: Redefining the Pace of Innovation
The Speed of Change
What's not widely known is the shocking aspects of how Tesla operates that are surprising even to established major players in the industry. One way to determine which automakers will succeed in the rapidly changing electric vehicle revolution is to evaluate their speed of innovation and ability to respond to challenges.
Joe Justice, an expert in change management who has worked at both Tesla and Toyota, explains that the key difference lies in the fundamentally different approach to business operations. While Toyota is famous for its lean manufacturing and agile methodology, the Musk companies have taken it to an entirely new level.
Nano-Management and Exponential Growth
Part 2/5:
The level of nano-management by Elon Musk, where every hire at Tesla has to go through him personally, is completely alien to traditional corporations. This hands-on approach, combined with the passion of the chief engineer, has resulted in a pace of innovation that is unmatched.
Justice explains that the Musk companies are able to make changes across different domains in seconds, whereas traditional companies are siloed and resistant to ripple-effect changes. This allows Tesla to introduce products with more innovation in a decade than any other company.
The Difference in Cost and Efficiency
Part 3/5:
The business fundamentals of the Musk companies are staggering. While Toyota's lean manufacturing approach famously reduced costs, Tesla is now able to manufacture vehicles at nearly 8 times the profit margin of Toyota. This is a result of the radically different work style and the use of digital self-management and mob AI.
Justice describes how teams of 3-5 people can automate and test work at the speed of a single person, constantly improving rate, quality, and customer satisfaction. This exponential growth in efficiency is what's driving Tesla's rapid ascent, leaving traditional automakers struggling to catch up.
The Rise of the Tesla Bot
Part 4/5:
The introduction of the Tesla Bot is another area where the Musk companies are pushing the boundaries. Justice sees the Bot as an attempt to replace human labor on a broad scale, similar to how AI is disrupting various industries. The crisis of self-worth and job identity that this will create is something most companies are not prepared for.
However, Justice believes that the Musk companies' ability to execute rapidly and with high quality when inspiration strikes will give them a significant advantage in this domain as well. The compounding effect of digital self-management and mob AI will allow the Tesla Bot to learn and perform tasks at a pace that traditional companies cannot match.
The Future Dominance of the Musk Companies
Part 5/5:
Justice's conviction in the long-term value of the Musk companies has only grown stronger. He believes that the capabilities these companies have built are so dramatically more epic that they could effectively buy out the largest automakers today, even if not in a full cash transaction.
The Musk companies' relentless pursuit of growth and innovation, combined with their unique operational approach, suggest that their dominance will only continue to expand. As Justice says, "the chips are all in the game," and investors who can ride this wave of exponential growth stand to reap significant rewards.
This is facts ma man, speed of innovation is one fo the biggest ways to know which will succeed. That's why I'm always happy to see Inleo changing so fast, no wonders it's the biggest on Hive