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A critical analysis of Elon Musk’s leadership in Tesla motors

Article  in  Journal of Global Entrepreneurship Research · May 2021


DOI: 10.1007/s40497-021-00284-z

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Journal of Global Entrepreneurship Research
https://doi.org/10.1007/s40497-021-00284-z

RESEARCH

A critical analysis of Elon Musk’s leadership in Tesla motors


Md. Rahat Khan 1

Received: 8 December 2019 / Accepted: 28 February 2021


# The Author(s), under exclusive licence to Faculty of Entrepreneurship, University of Tehran 2021

Abstract
This present study applies qualitative research method to evaluate the entrepreneurial roles and leadership styles of Elon Musk in
Tesla motors. The study places its focus on the general review of Elon Musk’s leadership and attempts to match the leadership
traits with some traditional leadership approaches widely recognized in leadership theory. The study employs a structured
observation technique assimilating numerous secondary sources with a view to analyzing Musk’s leadership traits in Tesla
motor. The results unfold Musk’s leadership attributes and shows that they match more or less with all the traditional leadership
approaches but the servant leadership approach. Additionally, the outcomes also demonstrate a new character (entrepreneurial
leader) in Musk’s leadership. Finally, the study offers some recommends for Elon Musk to follow, such as the champion/
corporate intrapreneur and the servant leadership approaches so that they add practical values in his leading trait. This study
will be a guideline for the new entrepreneur and will provide some distinctive ways of improvement in existing entrepreneurship
as well as for management literature.

Keywords Elon Musk . Tesla motors . Entrepreneur . Leadership

Introduction Leadership is nothing but the ability to influence others


(Robbins & Judge, 2013). In the twenty-first century, leader-
In the twenty-first century, both the scholars and practitioners ship is a challenge not only to lead an organization but also to
have said, core tricks are crucial to impel organizational per- lead the environment as the business environment is changing
formance such as strategic planning and leadership (Bennett dynamically. During the past few years, organizations have
& Lemoine, 2014). Doheny et al. (2012) stated that trans- become progressively more conscious of the serious need for
versely many industries, an increasing wave of volatility, un- leaders. So, leaders have to make constant changes in people,
certainty, and business complexity and anxiety are cracking process, structure, and technology. This entails flexibility and
markets and shifting the surroundings of competition. promptness in management decision-making (Horney et al.,
Although globalization has shaped opportunities with one 2010). From the textbooks some traditional and basic leader-
hand, on the other hand, it has also established some threats ship qualities can be found such as autocratic, democratic,
as well. The obstinate global recession has dulled repeated laissez-faire leadership style (Robbins & Judge, 2013). As
explode of confidence for the return to a way of affluence. the environment has changed; so the concept of leadership
The task of assimilating technological progress that hit the has also changed (Rost, 1993; Goldring & Greenfield, 2002).
market, along with the effects of demographic changes in The current study is narrowly focusing on the leadership
the workforce has created some uncertainty that the leaders traits of Elon Musk in Tesla motors. The basic aim of the study
might face some major challenges. So, leaders require im- is to find out to what extent the patterns of leadership tactics
provement in the discipline based on the concurrent business match with Musk’s leadership in Tesla motors. More specifi-
environment. cally, this particular study will try to observe Elon Musk’s
leadership practices in Tesla motors and try to unearth which
sorts of leadership attributes exist in Mask’s leadership. As a
* Md. Rahat Khan consequence, the study will cover the following. The follow-
rahatkhan.mrk14@gmail.com;
rahat.khan.dba@cityuniversity.edu.bd
ing part of the study will discuss some leadership attributes
under the shape of literature review. In the third section, the
1
Department of Business Administration, City University, Khagan, study will discuss the methodology of the research. After that,
Birulia, Savar, Dhaka 1216, Bangladesh the study will evaluate and narrate about Elon Musk and his
J Glob Entrepr Res

Tesla motors. Then, the study will analyze the leadership style et al., 2017). Leaders can exercise creativity as a planned tool
based on Elon Musk’s leadership. Finally, the research will to direct their organizations to attain adaptability. Kabanoff
have a discussion on findings along with ending remarks. and Rossiter (1994) described applied creativity as a method
which works in a real-world to find or to solve complex prob-
lems; by having an authentic behavioral creative plan as the
Review of literature final answer.

Some contemporary leadership styles which have been prac-


ticed in organizations for reaching the organizational goals Change leadership
have been stated below.
Change wants to craft a new system, which always needs
Charismatic and transformational leadership style leadership (Kotter, 1996). The concept basically explains
why thriving, and sustainable organizational advances depend
Charismatic leaders habitually try to build the status quo on the successful change in leaders who recognize how to
healthier, whereas transformational leaders spotlight on produce and publicize a vision, overcome battle to change
changing organizations into the leader’s vision (St. Thomas and handle conflict. Lewin’s (1947) theory of the change pro-
University, 2018). Transformational leadership (TL) was cess has three stages of unfreezing, freezing, and refreezing.
coined in 1973, in the sociological research named “Rebel Since then, both researchers and administrators have centered
Leadership: Commitment and Charisma in the revolutionary on the significance of change in execution processes for shap-
process.” The study was conducted by Downton, J.V. (Simic, ing employees’ behaviors and attitudes towards changing en-
1998). Then, James MacGregor Burns applied the term “trans- vironment. This prominence on change-process can be origi-
formational leadership” in the book titled Leadership (Burns, nated in the fields of justice (e.g., Shapiro & Kirkman, 1999),
1978). According to Burns, TL is a process where leaders and democratic decision-making (e.g., Schweiger & Denisi,
supporters constantly try to endorse their individual psycho- 1991), and organizational development (e.g., Quirke, 1996),
logical capability and motivational competence to higher
levels. In this process, the reciprocal and rising relationship
is present between leaders and their followers (Krishnan, Intelligence leadership
2004).
Intelligence leadership is found to steer the future by clasping
Participative/distributive leadership ambiguity and reorganizing problems as opportunities just
like a proactive attitude in enchanting their organizations into
In participative or teamwork leadership, more opportunities to the unexplored territory. According to Goleman (1998), emo-
contribute in decision-making offer employees with superior tional intelligence (leadership) is the ability to recognize per-
authentic rewards from work (Conger & Kanungo, 1988; sonal thoughts as well as of others, for managing emotion and
Thomas & Velthouse, 1990) along with advanced levels of for motivating ourselves and to fit in us and in our interaction.
psychological empowerment (Spreitzer, 1995), which can For leaders, emotional intelligence is vital for team success.
contribute in enhanced performance in the workplace. The All the same, who is more likely to thrive?—a leader who
participative leadership behavior shows that the leader has yells at his/her team when s/he is under anxiety, or a leader
the confidence in, and contiguity and admiration for the sub- who settles in, controls his/her emotional rush and tranquilly
ordinates and this type of leadership behavior fosters high evaluates the situation.
amount of trust towards the leader (Dirks & Ferrin, 2002, p.
614). For that consequence, the subordinates are liable to give
something back to their leaders along with the organizations Multicultural leadership style
by serving better work performance (e.g., Cohen, 1992;
Zellars & Tepper, 2003). A multicultural leader is able to apply multicultural lead-
ership by assessing the value of various cultures. A good
Creative leadership multicultural leader expresses excellence in talents includ-
ing patience, listening, admiration, and helpfulness while
Creative leadership is a philosophy to act, expand and appre- remaining polite. A multicultural leader will demonstrate
hend innovative ideas through mutual ambition of civilizing admiration for and make accommodations to permit indi-
the world through formation of enterprise. Creative leadership viduals of diverse cultures to work together and contribute
is employed to counterfeit an environment that supports inno- snugly with those of other beliefs and cultures (Dave
vative thoughts and mission-oriented entrepreneurship (Dijk Strathmann, 2016).
J Glob Entrepr Res

Pedagogical leadership style researchers attempt to examine the result of factors related to
the risk, investigative action, test, or some other associated
The concept of pedagogy is transferred by its Grecian sources interference without upsetting the changes which are or are
(Heikka & Waniganayake, 2011). Pedagogical leader is a per- not unexposed to it (Institute for Work & Health, 2015). In
son who by his acts, speeches or else promotes pedagogical addition, observation includes an investigator to track all the
action. Pedagogical leadership demands extraordinary keen- related phenomena without providing information beforehand
ness and aptitude based on the secret attitudes of the leader. (Malhotra & Dash, 2016). In case of structured observation, it
The leader’s responsibility includes the sentiment of leader- denotes an important process in which a research obtains data
ship and influence, such as an educator or pedagogue, never- without the direct participation of the respondents. It also en-
theless the forms, methods, and techniques are different. The ables the investigator to gather information which could not be
idea of pedagogical leadership conveys leadership nearer to obtained utilizing traditional research methodology, such as
people’s interface, as contrasting to the earlier hierarchical survey questionnaires as well as interviews, either structurally
leadership style. The administration of pedagogy is nothing or non-structurally. Structured observation applies to a coding
but the management as a whole – how the worker can put his/ system for the purpose of processing the collected data and
her whole hearted effort in their work as a teacher and also information (Mintzberg, 1970). Observational study collec-
develop and learn his/her work. But on the other hand, tively denotes the studies of case, cohort, along with cross
Pedagogical leadership is the art of employees’ learning, and sectional analysis (Mann, 2003). Observation method refers
the execution is cleared by each leader’s own learning percep- to an insight into an association between the groups as well as
tion. (Lahtinen, 2017). dyads, which explains the overall scenarios, processes, and
captures situation and then notifies regarding the impact of
Servant leadership style physical environment (Mulhall, 2003). The approach and ap-
plication of observational method normally diverge based on
Robert K. Greenleaf (1904–1990) commenced the concept of the research philosophical orientation along with the role
servant leadership among contemporary organizational theo- (from the perspective the researcher observes the situation or
rists (Spears, 1995, 1996). In Greenleaf’s (1977) view, lead- participants) of that particular researcher (Walshe et al., 2012).
ership must mainly meet the demands of others. The spotlight Observation method is most commonly used in social sci-
of servant leadership is on the others instead of on one’s own ences, more specifically in case of anthropological researches.
and on understanding the task of the leader as a servant The basic aim of that method is to uncover the unconscious
(Greenleaf, 1977). Egotism should not stimulate servant lead- events or annoyances which may have some potential interest
ership; rather, it should lead to a higher flat of motivation in emerging markets (Wimmer et al., 2001). The data has been
(Greenleaf, 1977; Pollard, 1996). assembled from the secondary sources such as from different
newspapers, journals, blogs, websites of Tesla Inc. and some
Bridging leadership style other related secondary sources which contain information
regarding Elon Musk and his leadership attributes along with
Bridging leadership focuses on creating and maintaining suc- Tesla Inc. Clandinin & Connelly, 2000), in their study, have
cessful working associations among stakeholders and key recommended two types of tactics to clarify the data of qual-
partners. “Bridging” various perspectives and views often ini- itative research. Firstly, to identify the exact research ques-
tiates a good extent of diverse stakeholders, and a general tions, which are the best fitting for that particular research
agenda which can embark on sharing and developing things and then assemble the details and specific solutions or answers
in order to discover resolutions to societal and economic trou- of the investigated events? Secondly, to evaluate the partici-
bles. The “bridging leadership” concept was developed by a pants’ responses under thematic design as well as to restore
worldwide group of development practitioners and re- that thematic design towards a background that generates the
searchers assembled by Synergos (2017). Bridging leadership thoughtfulness and elucidates the stories’ components.
assists nurturing synergy and emphasizing motivation and be-
havior through the exercise of communication to construct Elon musk and Tesla motors
climate of trust and buoyancy.
About Elon musk

Methodology Musk is a South African entrepreneur born in 1971. In 1989,


at the age of 17, he evaded his obligatory service in the South
The study is qualitative type in nature which is based on struc- African military and moved to Canada for attending Queen’s
tured observation research method. The observational ap- University. In 1992, he studied in business and physics at the
proaches are usually used where the investigators or University of Pennsylvania. He completed both of his
J Glob Entrepr Res

undergraduate and graduate degrees in economics and contin- facilitate businesses, dwellers, as well as utilities to deal with
ued for a second bachelor’s degree in physics. After leaving storage, renewable energy creation, and consumption. The
the University of Pennsylvania, Elon Musk started his journey Tesla considers all of the abovementioned efforts as just their
as a PhD student in energy physics at Stanford University in beginning. After that, Tesla attempts to introduce eco-friendly
California. and most reasonable cars, and energy production (Tesla,
Elon Musk started his business career by launching X.com 2019).
in 1999 which is widely known as PayPal (Online money
payment system across the globe), then launched SpaceX in
Financial performance and products of Tesla
2002, Tesla in 2003 (Biography.com, 2018); Musk himself is
an entrepreneurial leader. He attacked the traditional environ-
At the very beginning of incorporation on June 29, 2010, the
ment (Khan, 2019) where people were scared for an eco-
IPO (Initial Public Offering) was $17.00 per share. The fol-
friendly vehicle along with good speed like a gasoline car,
lowing Table 1 shows the latest scenario of share price.
Mr. Musk and his Tesla made this possible for the world.
Total revenues were generated on 31st December 2014 as
The electric vehicle is a wonder of the century in transporta-
$3,198,356; 31st December 2015 as $ 4,046,025; 31st
tion industry which precisely means change leadership.
December 2016 as $ 7,000,132; 31st December 2017 as $
11,758,751; and 31st December 2018 as $21,461,268.
The Tesla motors
Until now, Tesla Inc. is offering the following products:
Tesla was originated in 2003 by a cluster of engineers who
dreamed to demonstrate that community did not require to • Model S • Model 3 • Model X • Model Y • Cyber truck
compromise to drive slower version of electric vehicles in • Tesla Energy Service • Roadster • Tesla Semi
comparison to the gasoline vehicles. They can avail the faster,
better, adventurous, smooth driving through electric cars than
the gasoline cars. At present days, Tesla builds considerably Critical analysis of Musk’s leadership (2003–2018)
scalable clean energy generation and storage products through
creating all-electric vehicles. This means, green vehicle, Elon Musk, the other name for Tesla motors, is considered a
which shifts towards a zero-emission prospect. In 2008, visionary leader who has the ability to see the future. Musk is a
Tesla launched Model S and the car accelerates from 0 to mastermind and thus discerns that, it values him while he pays
60 miles per hour within 2.28 s. In 2015, Tesla added a new attention to what his critics, customers, observers, and fol-
model in its product line named Model X. The model was the lowers have articulated. And he utilizes this collected infor-
upgraded version of Model S, which holds five-star safety mation to the best advantages (Galek, 2018). Some transfor-
ratings from all categories. The certification was given by mational characteristics have also been observed from Musk’s
the National Highway Traffic Safety Administration. leadership, He is constantly optimistic and tranquil even when
In 2017, the company came up with another new model at the edge of bankruptcy. After a breakdown in 2008 of the
named Model 3 and the model was considered the CEO’s rocket launch, employees were tired and emotionally broken
(Elon Musk) “Secret Master Plan” of 2016, a high-volume down. Musk tackled the situation saying:
electric vehicle with comparatively low price. Shortly, Tesla
produced the most comfortable and the safest truck named “We are going to do this. It is going to be ok. Do not
Tesla Semi. The truck can save a great number of fuel costs freak out.” An observer named Dolly Singh remem-
of its owners. bered “It was like magic. Everyone chilled out immedi-
All the vehicles and majority of the vehicles components of ately and started to focus on what just happened and
Tesla are produced in its own factory located in Fremont, figuring out how to fix it.” (Gromov, 2017; Blazek,
California. Tesla is captivating a proactive approach to safety. 2016)
For that consequence, the company entails the employees,
who gets engaged in the production, to join in a multi-day Mr. Musk has not directly affirmed that he applies any one
program of training before the very first day of entering into specific theory of leadership, rather his leadership styles run
the factory floor; because, the company wants to achieve the across a diversity of circumstances. Musk employs supportive
goal of having the safest factories across the globe. Tesla had a as well as participative leadership (distributed leadership) stat-
total amount of 37,543 full-time employees until December ed by (Williams, 2018) which supports the path-goal theory of
31, 2017 (Annual Report, 2018). leadership (Snyder, 2018).
To construct a completely sustainable energy ecosystem, Musk is a genuine risk-taker; he started his business with
Tesla also invents exclusive set of power energy solutions X.com in 1999 and the business was flourishing on that time
such as Solar Roof, Powerpack, and Powerwall. The solutions and is popularly known as PayPal. However, the dream was
J Glob Entrepr Res

Table 1 Consolidated financial data from 2014 to 2018

Year ended December 31


2018 (2) 2017 2016 (1) 2015 2014
Consolidated statements of operations data:
Total revenues $ 21,461,268 $ 11,758,751 $ 7,000,132 $ 4,046,025 $ 3,198,356
Gross profit $ 4,042,021 $ 2,222,487 $ 1,599,257 $ 923,503 $ 881,671
Loss from operations $ (388,073) $ (1,632,086) $ (667,340) $ (716,629) $ (186,689)
Net loss attributable to common stockholders $ (976,091) $ (1,961,400) $ (674,914) $ (888,663) $ (294,040)
Net loss per share of common stock attributable to common $ (5.72) $ (11.83) $ (4.68) $ (6.93) $ (2.36)
stockholders, basic and diluted
Weighted average shares used in computing net loss per 170,525 165,758 144,212 128,202 124,539
share of common stock, basic and diluted
As of December 31
2018 (2) 2017 2016 (1) 2015 2014
Consolidated balance sheet data:
Working (deficit) capital $ (1,685,828) $ (1,104,150) $ 432,791 $ (29,029) $ 1,072,907
Total assets 29,739,614 28,655,372 22,664,076 8,067,939 5,830,667
Total long-term obligations 13,433,874 15,348,310 10,923,162 4,125,915 2,753,595

Source: Annual report Tesla, Inc. 2019

bigger and he sold his business in 2002 to liquid money for leadership from his tweet as either he had a plan to raise capital
starting other remarkable businesses like SpaceX and Tesla for a new project like intelligence leadership or a part of mar-
motors. According to Forbes, Musk owned his earliest ket positioning (inverters’ mind) for Tesla.
billion with the trade of PayPal in 2002 (Biography.com, Although he was very busy at his work and very work-
2018). Musk has also a good concern for his men. He priori- aholic: for instance, he could not manage time to celebrate
tizes on the safety of the workers. The following is what he his brother’s wedding reception, but he always spends
said in an email to his employees in reaction to a lately report- some time for socialization and talk back in tweeter
ed high injury rate at one of his Tesla stations (Muoio, 2017). (Galek, 2018); it is amazing and the purpose is nothing
but to draw the attention of customers along with their
He said, “It breaks my heart when someone is injured… minds for future growth of his business. That trait can also
I’ve asked that every injury be reported directly to me, be considered the marketing mind leadership of Musk.
without exception…I would like to meet with each in- Some former Tesla workers who personally worked or col-
jured individual so I can understand, from them, exactly laborated together with Musk on several instances
what we need to do to make it better…Then I will go expressed their experiences with him as follows. Few ques-
down to the production line and perform the same task tions were asked to them about their experience and opin-
that they perform…[Managers at Tesla] lead from the ions to work with Elon Musk (Matouesek, 2019).
front line, not from some safe and comfortable ivory
tower” Several workers who served or associated with Musk
observed his intellect. Almost everyone from the nine
The statement reflects Musk’s concern for employees as per people said, “He is very much intelligent and believes in
the management grid (Blake & Mouton, 1964). Musk is by change management. He is always ten steps clearly
born a change leader, always tried to attack the environment, ahead of any others”
took big risks, and proved that he is true to his vision. One of the participants who worked as a manager in
Musk has a great intention for socialization. He spends Tesla said, “You have to think 10 times more audacious
some of his time tweeting, one of his tweets “Am considering than he does to be able to be successful. If Musk liked
taking Tesla private at $420. Funding secured” made a huge your idea, he wouldn’t hesitate to put it into action”
impact on Tesla but went against the company policy. Few of
the directors were unhappy about the post and he was also During the interview, participating employees were asked
sued by U.S. Security Exchange Commission (SEC) about Musk’s leadership skills regarding how he could prop-
(Lekach, 2018); however, the tweet raised Tesla’s share up erly utilize his employees to become a better manpower in
7% after a few hours of posting. It may be considered positive Tesla Inc. Most of the participants said,
J Glob Entrepr Res

No one is better than him to properly utilize employees Nevertheless, some darker side of Musk’s leadership is also
in organization. One of the senior executives who obvious. Some fluctuations of his manners and preferences in
worked for Tesla motors shared his opinions as, “90% decision-making may downsize his leadership. Mr. Musk is
of the time I disagreed with Musk, I later realized Musk suffering from an age-old problem. He endeavors to do the
was right. I feel like I’m 10 times smarter now than whole thing by himself. Unluckily, his choice to do so exhibits
when I first joined,” a basic mix-up of what leadership means (Enderwick, 2018).
The physical health of Musk is also a part of his changing
This statement proves Elon’s quality and ability to practice behavior. As he is a workaholic he could not sleep well and
the transformational leadership trait (Ivana Simic, 1998) to his suffered from insomnia that may affect his leading ability as
employees. Two of the senior workers who worked under well. Two of his employees talked about him as,
Musk claimed that, “he would not hesitate to adjust the team’s
goals if the social networking message of the consumer cap- Employee-1: “Elon’s worst trait by far, in my opinion, is
tured his attention.” He also added that, “What ultimately a complete lack of loyalty or human connection,”
triggers him to act and make a decision is what he reads on Employee-2: “Many of us worked tirelessly for him for
social media,” years and were tossed to the curb like a piece of litter
without a second thought. Maybe it was calculated to
Another one said regarding the issue as, “When you’re keep the rest of the workforce on their toes and scared;
in a business meeting with him, he will pivot the direc- maybe he was just able to detach from human connec-
tion of the organization literally overnight. So tion to a remarkable degree. What was clear is that peo-
manufacturing could be a problem today, and as soon ple who worked for him were like ammunition: used for
as it stops being reported on social media, as soon as it a specific purpose until exhausted and discarded.”
stops being reported in the news, he’ll move on to what-
ever the news is claiming the new problem is.” A retired manager who had been on numerous phone con-
versations with Musk has now said that he assumed Musk had
An engineer who worked in Tesla as a production engineer not ever learned his name—something that he enjoyed, be-
has shared her opinion about the high level standard in Musk’s cause when somebody’s name did come up for the first time
leadership. throughout a phone conference, he would sometimes leave a
job shortly thereafter. Two retired senior employees said peo-
The engineer explained that, “Musk sometimes ple were afraid to say Musk that they argued with (Matouesek,
took that impulse too far, increasing costs and re- 2019).
ducing efficiency, but the quality of Tesla’s vehi-
cles is a testament to Musk’s perfectionism. Tesla One of them shared that, “Because of the pressure that
is an engineer’s paradise where the pencil is liter- he puts on his entire executive team, his senior leader-
ally never down.” ship team, even if they have the experience, they
wouldn’t dare speak up against him,”
During the interview, a former manager talked about
the goal-setting abilities and techniques generally The above comments for a leader from his subordinates
adapted by Musk in Tesla. He said, Musk occasionally may undermine the leadership quality of Musk. A leader must
set impracticable enlarge targets instead of a reasonable have the ability to understand his men and also some human
goal in an effort to accomplish it. That means, sometimes skills in all cases but Musk is falling apart from those types of
Musk believe in the “Think Big” concept of goal setting. traits. So he has a lack of servant leadership style (Greenleaf,
Through this concept, the employees and organization 1977).
may set highly optimistic stretch targets to motivate Nonetheless, People who are engaged in the technology
greater levels rather than a typical goal-setting strategy industry have declared that Musk’s impulse and the extent
(Brown, 2009). of his aspiration match that of both Steve Jobs and Bill
Gates. Edward Jung, who is a child genius and worked for
The manager also added, “He thought way outside the both Bill and Steve Jobs, said that,
box. The first time he met Musk, the Tesla CEO asked
him and a group of his coworkers what they saw when Elon has that deep appreciation for technology, the no-
they looked at a soda can. Musk said they could see a holds-barred attitude of a visionary, and that determina-
spaceship if they multiplied the soda can size. Musk said tion to go after long-term things that they both had, and
that 85 hours of work per week is the optimum amount. he has that consumer sensibility of Steve along with the
It is very much contagious” ability to hire good people outside of his own comfort
J Glob Entrepr Res

areas that are more like Bill. You almost wonder wheth- to take care of his physical and mental health. He is suffering
er Bill and Steve had created a genetically engineered from insomnia for his workaholic attitudes, so he needs per-
love child and, who knows, maybe we should genotype fect sleep or good rest. Because, insomnia may be the reasons
Elon to see if that’s what happened. for reduced judgmental ability, depressions of work, forgetful
behavior, accidents or many more (Peri, 2014). Fourthly, lead-
A venture capitalist named Steve Jurvetson, who is a share- ership is all about human skill where the leader has the ability
holder of Tesla, SpaceX, and SolarCity, and also worked un- to cope up with people, understanding their demands, and
der Jobs’ leadership, and was familiar with Gates very well, work for mutual interests. The forgiveness along with peda-
also expressed: gogical mentality has a big impact on leadership style. For
those certain criteria, Musk had fallen short in many cases.
“Musk is an upgraded mix of the two. Like Jobs, Elon So, Musk needs to work on his human skill (Katz, 2009) as
does not tolerate C or D players,” But I’d say he’s nicer well. Finally, the personality is also a huge issue in leadership.
than Jobs and a bit more refined than Bill Gates. Personality in talking, in decision-making, in behavior is al-
ways evaluated by people who are surrounded by true influ-
ential characteristics like Elon Musk. But, the tweeting, mock-
ingly referring SEC as “Shortseller Enrichment Commission”
Result and discussion (Bloomberg, 2018) is not coherent to the personality like Elon
Musk. Musk also needs to work on his public speeches ap-
The CEO and co-founder of Tesla, Elon Musk has been ad- proach as well.
mired globally for both of his leadership and entrepreneurial
skills. Musk is an effectual sequential entrepreneur having
good standing as a creative mastermind. His roles as CEO
and Product Engineer have been exemplary behind the rapid Conclusion
growth of Tesla. Musk was considered a successful creative
thinking leader accredited with the fruitful launch of Tesla The remarkable achievements of Tesla have caused the world
Roadster in 2018, which was the first lithium-ion battery cell to become more interested in Musk’s leadership and how he
electric car. Later, Musk supervised the launch of the Model S, finds so many people, diagonally in numerous organizations,
Model X, and Model 3 eco-friendly electric vehicles along and the public, to turn into more motivated and interested in
with the acquisition of SolarCity Corp (Dudovskiy, 2018). attaining the goals he is situating. He was also listed as
Nevertheless, the recent leadership and role of Musk in “World’s Greatest Leaders” in 2017 among the top fifty of
Tesla have considerably made concern to investors and stake- Fortune Magazine’s (Fortune.com, 2018). This particular
holders. His one tweet about privatization of Tesla and research basically tries to understand the certain leadership
funding sent the company into a big turmoil. The company characteristics of Elon Musk in Tesla motors. In the
has been constantly deteriorating its declared targets of num- literature part, the study points out some conventional
bers of vehicles to be produced by huge margin. In addition, leadership traits, such as charismatic, transformational
monthly billions of dollars are being spent without any profit leadership style, participative or distributive leadership,
in view. In the very first quarter of the year 2018 alone, Tesla creative leadership, change leadership, intelligence
annealed through a record amount of USD 710 million losses leadership, multicultural leadership, pedagogical leadership,
(The Guardian, 2018). The above turmoil was blamed by the and servant leadership, along with bridging leadership style.
stakeholders just for Musk’s exhausted physical health along In analysis, the study has tried to match those leadership
with 120 h of work per week and he stayed three/four days in characteristics in comparison to leadership practices which
factory without departing outside (Steward et al., 2018). are implemented by Elon Musk in his Tesla motors. The
Figure 1 shows the overall outcomes and interlink between findings and discussion show that Elon Musk has
theoretical aspects of leadership and Elon Musk’s leadership. incorporated the participative or distributive leadership,
Few recommendations should obviously be made about Elon pedagogical leadership style, creative leadership, change
Musk and his leadership. Firstly, Musk needs to set a standard leadership, and intelligence leadership; however, he has
company culture of freedom and trust along with accountabil- some shortcomings in servant leadership style. While some
ity ascertained. Secondly, Musk should distribute some of his other leadership style like multicultural leadership and
work-load for his physical as well as mental health. Though it bridging leadership are found absent in his leadership trait.
will really be difficult to find a better replacement for Musk’s In addition, Musk has followed entrepreneurial leadership in
workloads, Musk can apply the champion approach or his organization. However, few mistakes or leadership faults
Corporate Intrapreneur Approach (Thompson & Strickland, of Musk have caused Tesla to suffer huge losses in recent
2003) like “He is nowhere but everywhere.” Thirdly, he needs times.
J Glob Entrepr Res

Conventional leadership Elon Musk’s leadership Recommendations

Charismatic Leadership
Entrepreneurial leadership
Transformational Leadership
Charismatic Leadership Champion approach
Participative or
Transformational Leadership or Corporate
Distributive Leadership
Participative or Intrapreneur
Creative Leadership
Distributive Leadership Servant Leadership
Change Leadership,
Creative Leadership
Intelligence Leadership
Change Leadership,
Multicultural Leadership
Intelligence Leadership
Pedagogical Leadership
Pedagogical Leadership
Servant Leadership Servant Leadership
Bridging Leadership

Fig. 1 Interlink between theoretical aspects of leadership and Elon Musk’s leadership. Source: Authors’ observation. ★Elon’s added leadership besides
conventional leadership approaches. ✵Recommendations to add these approaches. ⇒Has found in Elon’s leadership but need to improve (fall short)

Though the study has tried to assess the leadership traits of


Elon Musk in Tesla, yet many things can be done in future Author contribution The author prepared the full article based on the
secondary data.
works. As the research is qualitative in nature and the out-
comes of the research have been drawn based on secondary
sources with the support of observation methods, but the fu- Declarations
ture research can explore these things based on quantitative
Ethics approval and consent to participate Not applicable.
techniques. More specifically a structured questionnaire can
be made based on this current research to survey Tesla’s em- Competing interests The authors declare no competing interests.
ployees who undergoes through the direct leadership of Elon.
Besides, the future research can be tested through the face to
face interview of Elon Musk and his employees. The implica- References
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