Elon Musk just taught a huge lesson to every CEO in America. I hope they take notice
Tesla 241,300 vehicles delivered in the third quarter of 2021. This surprised many, Exceeding Wall Street ExpectationsThe company’s share price increased by 5 percent. Tesla was able to achieve this at a time when most auto companies’ sales have fallen sharply due to supply chain issues. Mentality Elon Musk And the Tesla employees who are accustomed to overcoming these problems is something that every business leader, and especially every entrepreneur, can learn from.
It’s hard to overstate the amount of achievement in Tesla’s third quarter. Tesla sold 102,000 more cars than it did in the same quarter of 2020 – an increase of more than 73 percent. The company set a record for quarterly production. Compare that with other automakers: GM sales were by 33 percent Ford sales were down 27 percent In those three months compared to the same quarter last year.
Why are auto makers’ sales dropping at a time when the demand for cars is so high Literally push inflation? If you’ve ever followed the news, you might already know the answer: the persistent shortage of computer chips, caused by a combination of pandemic shutdowns and canceled orders due to an expected drop in demand. This shortage affects everyone, and both analysts and automakers are quick to explain. For example, Chief Financial Officer Paul Jacobson warned Investors last month reported that “the global supply chain continues to deteriorate a little bit. We have multiple impacts that have exacerbated, in the first place, semiconductor supply chain risks.” The automakers themselves optimistically predicted an increase in sales – as soon as the factories supplied them with more chips.
Tesla, of course, was affected by the lack of chips, too, Musk acknowledged during earnings call in July. “The supply of chips has basically become a factor in our production,” he said. “This is out of our control, basically. It seems to be getting better, but it’s hard to predict.”
This is where other automakers have finished their data – chips are short, it seems to be getting better, and we’ll sell like gangbusters as soon as it does. The difference is that musk Explain how Tesla managed to build cars anyway.
A massive effort.
“The output we achieved was only thanks to the tremendous effort of the people inside Tesla,” he said. “We were able to replace the replacement chips. Then write the firmware in a matter of weeks. It’s not just a matter of swapping a chip. You also have to rewrite the software. It was an incredibly intense effort to find new chips, write new firmware, integrate it with the car, and test it. In order to maintain production.”
In other words, he and the employees at Tesla continued to do what they had always done. They have adapted to the changing landscape and found ways to solve problems quickly. Later in the call, Musk raised the question of whether Tesla could solve the problem once and for all by building its own semiconductor plant. He said, “People want to say, ‘Why don’t you make one piece of potato chips? “Okay, well, that would take us – to move like lightning – 12 to 18 months. So it’s not like you can just take out a piece of potato chips.”
I understand that Tesla isn’t going into the semiconductor field anytime soon, and I’m not suggesting that. I’d say Musk is the rare leader who will consider every possible solution to a problem, even those CEOs will immediately reject because those solutions are outside the company’s business model or something you don’t know how to do. When he is faced with something he does not know how to do, Musk goes and learns how to do it. In other words, Musk has what Carol Dweck, a professor of psychology at Stanford University, calls it growth mindsetBelieving that he can grow and develop skills and abilities he did not have before.
He and Tesla also offered something that I believe every successful entrepreneur needs – and that is Inner control positionPsychologists define it as the belief that your successes and failures are primarily caused by the things you do. People with an external center of control believe that their successes and failures are primarily determined by forces outside themselves. While both views have advantages and disadvantages, when faced with a problem like a shortage of chips, people with an inside position are more likely to do what the folks at Tesla did and figure out a way to build cars with alternative chips. People with an outside position are more likely to do what General Motors and Ford have done and pin their hopes on improving conditions at the semiconductor plants. (Another example of Musk’s willingness to take action in the face of challenges is his example recently announced Decision to move Tesla headquarters from Palo Alto to Austin.)
There is a small but growing group of Inc.com readers who receive a daily text from me that includes a challenge, motivational idea, or self-care. A lot of times, they text me and we end up in an ongoing conversation. (Are you interested in joining? You can learn more Here.) Many of them are successful entrepreneurs, and they tell me that when faced with a challenge, they tend to take action, thinking it is up to them to find a way to improve things.
The truth is that almost any situation you encounter at work or in life is a mixture of internal and external factors, things you can control and other things you cannot control. Focusing on what you can do and believing that your actions will make a difference – can change the rules of the game. Just ask Elon Musk. He’s got 241,300 cars sold to prove it.