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Introduction
The Leadership style of Elon Musk will be analysed in this report by finding his leadership characteristics and traits including the leadership approach he follows. Elon Reeve Musk FRS is a business magnate, industrial designer, and engineer. He is the founder, CEO, CTO, and chief designer of SpaceX; early investor, CEO, and product architect of Tesla, Inc.; founder of The Boring Company; co-founder of Neuralink; and co-founder and initial co-chairman of OpenAI. A cent billionaire, Musk is one of the richest people in the world.
Musk was born June 28, 1971 to a Canadian mother and South African father and raised in Pretoria, South Africa. He briefly attended the University of Pretoria before moving to Canada aged 17 to attend Queen’s University. He transferred to the University of Pennsylvania two years later, where he received dual bachelor’s degrees in economics and physics. He moved to California in 1995 to attend Stanford University but decided instead to pursue a business career, co-founding web software company Zip2 with his brother Kimbal. The start-up was acquired by Compaq for $307 million in 1999. Musk co-founded online bank X.com that same year, which merged with Confinity in 2000 to form the company PayPal and was subsequently bought by eBay in 2002 for $1.5 billion.
In 2002, Musk founded SpaceX, an aerospace manufacturer and space transport services company, of which he is CEO, CTO, and lead designer. In 2004, he joined electric vehicle manufacturer Tesla Motors, Inc. (now Tesla, Inc.) as chairman and product architect, becoming its CEO in 2008. In 2006, he helped create SolarCity, a solar energy services company and current Tesla subsidiary. In 2015, he co-founded OpenAI, a nonprofit research company that promotes friendly artificial intelligence. In 2016, he co-founded Neuralink, a neurotechnology company focused on developing brain–computer interfaces, and founded The Boring Company, a tunnel construction company. Musk has also proposed the Hyperloop, a high-speed vactrain transportation system.
Musk was ranked 21st on the Forbes list of The World’s Most Powerful People in 2013 and has since maintained a spot in the top 35. In 2016, Musk was ranked as the 94th richest person in the world with an estimated net worth of $13.9 billion, and in 2020, he was ranked 31st on Forbes’ list of billionaires with a net worth of $38.8 billion. He is the longest-tenured CEO of any automotive manufacturer globally. On July 20, 2020, his wealth increased by $13.2 billion to $128 billion after Tesla’s stock price surged that day, making him the world’s second-richest person, behind only Jeff Bezos. His net worth increased to $151 billion on November 23, 2020, making him the world’s richest person for the first time. On January 7, 2021, Musk was officially named the world’s richest person, with a net worth of $188.5 billion after Tesla shares rose again. He has alternated between the first and second place with Jeff Bezos since October 2020. As of January 2021, Musk has a stake in three publicly traded companies: Tesla, SpaceX, and Neuralink. In addition to his public companies, he owns several private companies, most notably The Boring Company, a tunnel construction company.
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Leadership traits and characteristics of the leader
Quick thinking, decision making and fast implementing: Elon Musk is a quick thinker and fast implementer, which is one of the great characteristics of a leader. He explores the possibilities and takes fast action to implement the steps he has thought of. It helps the leader to utilize the available opportunities in the market and become profitable. His outstanding thinking capabilities help him to take the right decisions quickly and implement the decisions with proper planning that makes Elon Musk’s decisions beneficial and effective for his business.
Inspiring and motivating team: Elon Musk is one of the most inspiring leaders in the world. He has outstanding motivation skills and it helps him to make his 100k employees believe in his vision. Therefore, employees proactively participate in the way of achieving Elon Musk’s vision and giving their best efforts. This ability helps him to keep employees by his side and bring the outcome he wants from them employees. As a result, Elon Musk has possessed the position of one of the best leaders and successful businessman of the world.
Communication skill: Elon Musk has great communication skills and his skill is direct and objective-oriented. He uses a commanding style of communication while communicating with his employees. It helps him to clearly deliver messages to his employees, and he provides clear direction through his messages; therefore, employees can understand their leaders’ requirements and work on them. As a result, Elon Musk got the outcome he wanted from his employees’ performance.
Adaptability and flexibility: Adaptability and flexibility are two great traits and characteristics that leaders should have. Elon Musk has a higher level of adaptability and flexibility, and it is one of the biggest strengths that the leader. He can change his mind quickly after assessing a problem and situation and adopt the changes that need to be made to solve the problem or handle the situation.
Continuous learning: Elon Musk is a continuous learner, and he also tries to learn from experienced ones. He listens carefully to the people who have the proper experience and he gains new knowledge by doing that. It helps him to learn new ways of doing work and bring new developments to his company. Therefore, his companies stay ahead of the competition than others.
Personality assessment of the leader: The application of the Big Five Personality traits
One of the most effective frameworks for analyzing leaders’ characteristics is the Big 5 model. Here we will utilize the framework to assess the characteristics of Elon Musk.
Openness: The interest in trying new things and learning from letdowns are the characteristics that reflect a leader’s openness. Elon Musk is a creative and innovative thinker who is constantly pushing boundaries. He has demonstrated this by founding various companies, such as Tesla and SpaceX that are on the cutting edge of technology. He also has a strong interest in learning and is continuously exploring new ideas and concepts.
Conscientiousness: Capacity to face external pressures and preserve integrity reflect the Conscientiousness of a leader. Musk is known for his hard work and dedication to his projects. He is extremely organized and has the ability to stay focused even when faced with difficult tasks. He has a strong attention to detail and is known for his commitment to excellence.
Agreeableness: How individuals get along with others reflects a leader’s agreeableness. Musk is often described as having a strong sense of ethics and morality. He has a strong belief in the power of collaboration and encourages open dialogue between his teams. Additionally, Musk is often seen as a kind and generous individual, often donating his time and resources to charitable causes.
Neuroticism: The capability of managing one’s emotions, feelings and sadness is referred neuroticism. Musk is quite a controversial figure, and his outspoken nature has often been seen as a source of negativity. He is known for not shying away from confrontation and can be quite vocal when it comes to his opinions. He also has a tendency to be overly critical of himself and those around him, which can lead to conflict.
Extraversion: The capability of interacting with others is extraversion. Musk is an outgoing individual who loves being in the public spotlight. He enjoys sharing his ideas and engaging with people from all walks of life, which has helped him to gain a large following. He is also known for his enthusiasm and passion for whatever project he is working on, which often inspires those around him.
Evaluating the leadership style Elon Musk
Elon musk makes all decisions alone without involving anyone in his decision-making, and refers to the autocratic leadership style of the leader. Now we will see how the leadership approach helped the leader to be successful.
Contribution of Elon Musk’s autocratic leadership style in enhancing his businesses’ performance:
Faster decision-making: Elon Musk follows autocratic leadership, which allows him to make decisions faster. He does not need to allow other employees in decision-making. It would consume a huge amount of time if he allowed employees in decision-making. Elon Musk takes decisions faster which helps to take the right decisions without wasting time. For instance, purchasing Twitter was one of the fastest decision that he made.
Enhance workplace communication: As Elon Musk is an autocratic leader, he keeps open communication between himself and his team. He encourages employees to voice their opinions freely and take feedback from his team. This helps in motivating them and makes them feel valued, as their thoughts are taken into account. For instance, when he sends directions through mail to his employees directly without giving the responsibilities to HR or others. As a result, it ensures that employees understand his vision by reading his mail.
Enhance productivity: Elon Musk’s autocratic leadership style encourages employees to take the initiative and be accountable for their decisions. This approach helps in fostering a culture of productivity, as there is no fear of being reprimanded or punished by the leader. His decision-making process also ensures that tasks are completed quickly, thus leading to greater output. For instance, in 2010, Musk needed cash to invest in his business; therefore, he sold a Tesla stake without consulting others, and it brought 30% growth for his business.
Improve crisis management: Elon Musk’s autocratic style helps him in taking the right decisions quickly and efficiently. This helps him in crisis management, as he is able to take control of the situation without having to consult anyone else. For instance, during the COVID-19 pandemic, Elon Musk took a strict decision that Tesla would stay operational with a minimum employee onsite so that it could be safe and operations can continue.
Conclusion
Overall, Elon Musk is an inspirational figure and a highly successful leader. His traits align with the Big 5 framework and this has enabled him to become one of the world’s most successful entrepreneurs. His quick thinking and decision-making abilities, combined with his inspiring approach and ability to motivate others, have all played a role in establishing him as the world’s leading innovator. Additionally, his communication skills, adaptability and flexibility, and continuous learning habits have all helped to contribute to the success of his businesses. With Elon Musk as an example, it is clear that these characteristics are essential for any successful leader. Elon Musk’s autocratic leadership style has helped him to be successful in his businesses. His ability to take decisions quickly and efficiently, along with his passion for innovation, have enabled him to achieve great success. He also keeps open communication with employees and encourages a culture of productivity which further helps in enhancing performance. Thus, it can be seen that autocratic leadership is not always bad and can help in achieving great success when used correctly.
Reference
Andres Valdes (2020). 7 Leadership Traits Elon Musk Used To Build Tesla and SpaceX. [online] Andres Valdes. Available at: https://andresvaldes.com/7-leadership-traits-elon-musk-used-to-build-tesla-and-spacex/. [Assessed on: 20 November, 2022]
Kholghi, B. (2021). Bijan Kholghi. [online] About Leaders. Available at: https://aboutleaders.com/elon-musk-leadership-style-13-strategies-for-excellence/. [Assessed on: 20 November, 2022]