4 Ways to Apply Elon Musk’s Leadership Style (2023)

Over the past decade, Elon Musk, founder of SpaceX and CEO Tesla Motors, has sealed his status as one of the world’s greatest entrepreneurs. In the process, he’s gained an almost cult-like following with almost seven times the entire population of New York City following his every word on Twitter. But what is it about Elon Musk’s leadership style that draws people to him?

The answer is simple: Musk set his sights on the nearly impossible. Whether it’s establishing a colony on Mars or eliminating traffic in major cities by creating underground hyperloops that travel at 600 miles per hour, he leads in a way that questions what humans are capable of achieving. Watching his vision come to life is both inspirational and motivational. It makes some people want to dig their heels into the ground and tackle the world’s greatest problems with the same level of tenacity.

Table of Contents
  1. What Is Elon Musk’s Leadership Style?
  2. Autocratic and Transactional Leadership Traits
  3. How to Implement Elon Musk’s Leadership Style
  4. 4. Be Aggressive About Achieving the Business’s Goals
  5. Avoid the Pitfalls of Elon Musk’s Leadership Style

When it comes to guiding a company, there’s a lot that startup owners and executives can learn from Elon Musk’s leadership philosophy. Find out more about the way he leads and how to replicate his best leadership qualities.

What Is Elon Musk’s Leadership Style?

A person’s leadership style is how they lead themselves and their team. In total, there are seven different ones: democratic leadership, autocratic leadership, transformational leadership, transactional leadership, laissez-faire leadership, charismatic leadership, and servant leadership. While a person can show traits in all of the leadership styles, one leadership style is usually more dominant than the others.

(Video) Elon Musk's Leadership Style // Can it Work For You ??

Elon Musk’s leadership style is transformational since it focuses on innovation and achieving large scale goals. This leadership style’s strengths are innovative thinking, analysis, problem-solving, planning, and strategy execution. In short, transformational leaders don’t wait for the world to change—they make a plan and motivate others to join them so they can achieve their vision. Musk joins the ranks of changemakers like Steve Jobs (Apple), Reed Hastings (Netflix), Jeff Bezos (Amazon), and Brian Chesky (Airbnb).

Top 5 Elon Musk Transformational Leadership Quotes

  • “We will not stop until every car on the road is electric.”
  • “If you get up in the morning and think the future is going to be better, it is a bright day. Otherwise, it’s not.”
  • “There have to be reasons that you get up in the morning and you want to live. Why do you want to live? What’s the point? What inspires you? What do you love about the future? If the future does not include being out there among the stars and being a multi-planet species, I find that incredibly depressing.”
  • “Really, the only thing that makes sense is to strive for greater collective enlightenment.”
  • “People work better when they know what the goal is and why. It is important that people look forward to coming to work in the morning and enjoy working.”

Autocratic and Transactional Leadership Traits

Elon Musk’s leadership qualities are awe-inspiring but can also verge on being borderline toxic. Like Steve Jobs, he is highly respected and revered for his genius, but that doesn’t change the fact he’s still notoriously difficult to work with. This is because he also shows signs of being an autocratic leader and a transactional leader. Autocratic leaders want sole authority in their companies and rule with an iron fist, while transactional leaders can be cold and daunting because they view work as a business transaction. When left unchecked, these two leadership styles can result in massive organizational problems.

In 2018, Wired released an exposé about the cutthroat work environment at Tesla. “Everyone in Tesla is in an abusive relationship with Elon,” a past executive told writer Charles Duhigg. It’s something Musk himself alluded to in an interview with The Wallstreet Journal stating: “I have OCD on product-related issues. I always see what’s . . . wrong. Would you want that?” He also described himself to the interviewer as a “nano-manager.” A former employee backed up this sentiment in a Business Insider article, explaining his Tesla management style was one that showed control freak tendencies. “There was only one decision-maker at Tesla, and it’s Elon Musk,” the anonymous insider said.

Nevertheless, Musk isn’t a ruthless, task-oriented dictator—he’s obsessed with delivering excellent results. In the same Business Insider article, another former team member explained that even when there were disagreements with Musk, he was right 90 percent of the time. The employee said the experience was challenging, but they came out of it “10 times smarter.”

Summary

Elon Musk’s transformational, autocratic, and transactional leadership style goes to show he’s in business to produce results, not make friends. He demands excellence because it is what drives transformation.

(Video) Elon Musk: His Style of Transformational Leadership? Should YOU Use It? The Benefits and Pitfalls

How to Implement Elon Musk’s Leadership Style

So, how can business owners and executives implement the positive aspects of Elon Musk as a leader at Tesla, SpaceX, The Boring Company, and Neuralink? Find out more about his most endearing leadership qualities and how to use them to your advantage below.

1. Let Failure Motivate You

“Failure is an option here. If things are not failing, you are not innovating enough.”

Elon Musk is no stranger to failure. Around Christmas 2008, he almost lost Tesla and SpaceX at the same time. Even during these dark times, he still demonstrated impeccable leadership skills that motivated his team to keep pushing forward. In a post on Quora, Dolly Singh, the former head of talent acquisition at SpaceX, wrote that after the loss of Falcon One in 2008, “A failure in leadership would have destroyed us not only from the eyes of the press or potential consumers but it would have destroyed us internally.” Knowing this, Musk addressed his team with a motivating speech that described their mission and the fact that they would not give up despite this setback. “Within moments, the energy of the building went from despair and defeat to a massive buzz of determination . . . in a matter of not more than 5 seconds,” she explained.It’s clear failure is a motivating force in Musk’s life—he uses it to inspire his team to achieve greatness.

(Video) The 6 Leadership Principles at TESLA & SPACEX via Elon Musk

When leading through failure:

  • Don’t dwell on the negatives. Instead, find the lesson in failure and implement it to the next iteration of work.
  • Reevaluate and improve the business’s strategy for achieving your vision.
  • Communicate the purpose of changes with your team.
  • Prepare employees for failure by teaching them how to recover when it happens. You can even write a manual on how to handle failure at your company. Leading by example is another great option. Show team members how to take ownership of mistakes and pivot away from setbacks.
  • Create a safe environment to fail by destigmatizing the shame that comes with failure. Discuss the importance of failure and how it leads to progress, growth, and innovation. Additionally, open up lines of communication around mistakes and discuss ways to improve. Be sure to lead this exercise by sharing your own failures and how you rise above them.

Learn more about how to overcome the fear of failure.

2. Become a Master at Problem Solving

Boil things down to their fundamental truths and reason up from there . . .”

As a transformational leader, Elon Musk focuses on solving the world’s greatest problems. The unique way he thinks about challenges is what allows him to do this. In a TED conversation with Chris Anderson, he states he looks at problems from a different perspective than most people. Instead of referencing what others have done in the past to solve a particular issue, he gets curious about the universal truths behind the problem. Disinterested in others’ assumptions, he asks questions until the root of the problem reveals itself. This helps him determine how to approach the issue and create an innovative solution.

To problem solve like Elon Musk:

  • Write out what you think you know about the challenge in front of you. Is what you’ve written an assumption or a universal truth? If it’s an assumption, get curious about why people formed this opinion. For example, is there a particular boundary those in your industry say can’t be crossed? Is this really true, or is it just something people think can’t be done?
  • Get to the core of the problem by using the 5 Whys method developed by Sakichi Toyoda, the founder of Toyota Industries. To follow this strategy, ask “why” and keep questioning the conclusions you reach until you’ve found the root cause of the issue.
  • Research the problem and consult with leaders and experts who can help you make an informed decision.
  • Reverse engineer the outcomes of your potential solutions to make the best choice.
  • Establish an action plan and monitor the success of your resolution.

Find out more about becoming an expert at problem solving.

3. Develop a Hunger for Knowledge

“One bit of advice: it is important to view knowledge as sort of a semantic tree—make sure you understand the fundamental principles, i.e. the trunk and big branches, before you get into the leaves/details or there is nothing for them to hang on to.”

(Video) Authentic Leadership - Elon Musk

When discussing his childhood, Elon Musk tells Rolling Stone, “I was raised by books. Books, and then my parents.” Kimbal Musk validated this point, describing in a Bloomberg article that his brother read two books a day on various disciplines as a teenager. Like many famous business owners, such as Warren Buffett, Mark Cuban, Oprah Winfrey, and Bill Gates, Musk has spent a large portion of his life reading and obtaining knowledge to guide his companies to success.

In terms of gaining knowledge, Musk advises people to:

  • Study work that establishes a foundational understanding of the subject.
  • Once this is complete, venture out into various subcategories to obtain more knowledge about this interest. For example, if you want to learn more about leadership, start with a book on what leadership is before diving into a comprehensive review of the Situational Leadership® model.
  • Stay curious and ask questions to gain more insight.
  • Develop a “communication loop” where the team gives one another feedback.

Get started by reading these 15 leadership books.

4. Be Aggressive About Achieving the Business’s Goals

“I don’t create companies for the sake of creating companies, but to get things done.”

Elon Musk’s leadership style, transformational leadership, focuses on creating real positive change in the world. This type of leader is action-oriented. Instead of sitting around and philosophizing about how to change the world, they outline and execute a strategy that makes their vision a reality. For example, the Tesla management style is centered around meeting company goals. Leaders place a heavy emphasis on deliverables because, for the business to stay alive, grow, and fulfill Musk’s vision, team members must complete these objectives. The same can be said about his other organizations. At the heart of Musk’s businesses is hard work that achieves a meaningful purpose.

To achieve goals like Elon Musk:

  • Set challenging objectives that help push the boundaries of what people can accomplish.
  • Spend at least one day a week working on the company’s business strategy.
  • Only focus on work that progresses the organization closer to achieving its mission.
  • Free up time to work on the business by delegating duties that do not require your attention.
  • Schedule out reasonable completion dates for all work.
  • Hire a project manager who coordinates with everyone on the team so work gets finished on time.

Discover more tips on goal setting.

(Video) 5 Elon Musk Leadership Traits to Copy

Avoid the Pitfalls of Elon Musk’s Leadership Style

Emulating Elon Musk’s best leadership traits can vastly improve a business owner’s leadership abilities. Yet, as previously explained, there are a few behaviors you’ll want to avoid. This is especially true when it comes to micromanaging employees and creating work environments that cause work anxiety and work burnout (for both leaders and team members). These issues create toxic workplaces, contribute to low employee retention rates, and sink budgets due to constant turnover.

To combat these issues:

  • Develop a work culture that encourages work-life balance. For example, if you see an employee working 90 hours a week, send them home.
  • Try following Amazon leadership principles to work on creating trust between yourself and your team members. Discuss expectations, show them how you would like duties performed, teach them how to do these, and help them as they grow into their new role.
  • Recognize and acknowledge people for all of their hard work. Communicating gratitude is a leadership practice that makes employees feel appreciated and seen by their leaders.
  • Learn how to be more charismatic as a leader, even when this isn’t your strong suit.

Interested in learning more about Elon Musk and his companies? Learn how he’s changing the landscape of manufacturing with the Tesla Gigafactory or check out this article next: “Who is Elon Musk? A Look Inside the Innovator’s Life.”

FAQs

What makes Elon Musk a good leader? ›

Embracing failures

Throughout his journey as a transformational leader, Elon Musk had his fair share of failures. Instead of letting those hurdles pull him down, he got inspiration from them. Elon Musk's piece of advice constantly revolves around learning and getting better from your setbacks.

What type of management style does Tesla use? ›

The tesla company has aimed to provide the most innovative products to its customers for which he uses the transformational leadership style which emphasises on innovation and development of the skills of the employees that helps the company to perform better and create a competitive environment for the rivals by ...

What are 5 characteristics of Elon Musk? ›

Elon Musk Personality Traits | Successful Personality Traits
  • Hard-work and Characteristic Work Ethics. ...
  • Strong Risk Tolerance. ...
  • 'Always Be Learning' Attitude. ...
  • Feedback Loop. ...
  • A tendency for Vertical Integration. ...
  • Faith in Self and the Founding Team. ...
  • Preferring to Stand Out From the Crowd.

How is Elon Musk a visionary leader? ›

Is Musk a Visionary Leader? Musk may fall into the “visionary leader” role more comfortably than other leadership styles. He has a bold, persistent personality that will not let him accept failure. He's also an extremely organized person with inspirational ideas and an intense focus on his work.

What is Elon Musk strategy? ›

Musk's strategy can be characterized by common themes across three areas: what fits into his vision for problems to solve, how he designs an organization as a solution to those problems, and why he can so effectively mobilize resources towards those solutions.

How does Elon Musk motivate his employees? ›

Musk has very high standards and expectations for his employees. He has said that he only wants to hire the “best and brightest” people. This high bar motivates employees to do their best work and strive to meet Musk's expectations. Musk encourages his employees to take risks and to not be afraid of failure.

What is Elon Musk decision making style? ›

Musk believes information should travel in any direction and across levels, no matter your title, rank or position. Musk has even gone so far as to say that those that enforce the chain of command will “find themself working elsewhere,” emphasizing how seriously he takes the issue.

How does Elon Musk manage all his companies? ›

Elon Musk manages companies through deep integrations and symbiosis between them. Like he felt it was difficult to commute from Tesla to SpaceX headquarter, day in and day out. So he started a company called Boring Company, and it is not 'boring' it here means tunnel boring machines.

Is Elon Musk participative leadership? ›

At this point, Elon shifts into Participative Leadership, which requires a leader to involve followers in decision-making by consulting with subordinates to get their opinions and input (Williams, 2018). In just this one example of Elon's leadership we can see Path-Goal Theory at work, whether he realizes it or not.

What is Elon Musk's IQ? ›

Elon's IQ is estimated to be around 155, while Albert Einstein's is 160. With such a slight margin, Musk is undoubtedly an incredibly smart person. Who is the smartest person on earth in 2022?

What are three characteristics of Elon Musk? ›

Elon tends to be ambitious, fast-paced, critical, and efficient at work. As a Type One, Elon tends to be rational, principled, and judicial. Elon usually has a desire for justice and equality and is motivated by a strong sense of right and wrong. As an INTJ, Elon tends to be confident, analytical, and ambitious.

Why Elon Musk should be a role model? ›

Elon Musk has been my role model since I was young.

Elon Musk is a man who has achieved great success in his life. He founded Tesla, SpaceX, and Solar City. He's made billions of dollars from these companies and still continues to innovate new ideas every day. He's also a great family man.

How does Elon Musk inspire people? ›

He raised the expectations of the people by exploring beyond the planet. He will be remembered for his entrepreneurial adventures and innovation. The ambitious entrepreneurs must learn lessons from his innovation, entrepreneurship, and leadership.

Is Elon Musk a charismatic or transformational leader? ›

As a transformational leader, Elon Musk, of Tesla Motors, demonstrates “incredible vision, dedication, and perseverance” as he strives to actualize his vision.

What skills do Elon Musk have? ›

His expertise ranges from rocket science, engineering, construction, tunneling, physics, and artificial intelligence to solar power and energy. In a previous article, I call people like Elon Musk modern polymaths. Modern polymaths: Follow the 5-hour rule and put at least 5 hours per week into learning.

What strategies did Elon Musk applied to exemplify locus of control? ›

Here are Musk's six tips:
  • Nix big meetings. “Excessive meetings are the blight of big companies and almost always get worse over time. ...
  • Ditch frequent meetings too. ...
  • Leave a meeting if you're not contributing. ...
  • Drop jargon. ...
  • Communicate directly, irrespective of hierarchy. ...
  • Follow logic, not rules.
18 Apr 2018

How do you set goals like Elon Musk? ›

Elon Musk uses a simple strategy to reach his goals—here it is
  1. Self-awareness = asking the right questions of yourself. Chen's team found that Musk and Jordan used metacognitive strategies or what could otherwise be called high-level thinking in their approach. ...
  2. The strategic mindset isn't just for work. ...
  3. About the Data:
25 Jan 2021

Does Elon Musk have a growth mindset? ›

He has what is known as a growth mindset, the belief that he can grow and develop abilities and skills he didn't have before. In addition, Musk and Tesla also demonstrated something every entrepreneur needs, an internal locus of control.

What are Tesla's core values? ›

Tesla's core values comprise “doing the best, taking risks, respect, constant learning, and environmental consciousness.” Tesla applies these values as the principles that govern the overall attitudes and practices of all stakeholders and its workforce.

How does Tesla empower its employees? ›

Think Like Owners. Like the above, Tesla encourages all employees to think like owners meaning that they always find the best way to do something, rather than going through the motions and ticking boxes. A culture that encourages this strategic thinking will create a team that is passionate, proactive and responsible.

How does Tesla reward its employees? ›

Tesla offers employee discounts of up to 35% on their merchandise and a range of services, including travel, childcare, and entertainment. Tesla merchandise is in high demand, even with employees.

Is Elon Musk an authentic leader? ›

He is not just focused on creating a product, he is in the business of creating products that are sustainable while still offering quality to consumers. When considering Elon Musk under the lens of authentic leadership, it is clear he has the necessary leadership traits.

How has Elon Musk changed the world? ›

Elon created SpaceX, a space transport company. SpaceX made significant innovations and advancements in getting things and people into space. SpaceX is innovative because it lowers the cost of space exploration while drawing more attention to the potential to make money in space companies.

How does Elon stay organized? ›

One thing is to create a task list for every single day, and the other one is to carry it out. Elon Musk does it by dividing the day into 5 minutes slots. Then he thinks about how much time he needs to carry out each task. Once he figured this out, he then assigned tasks to time slots in his calendar.

How much does Elon Musk sleep? ›

Elon Musk says he is "fairly nocturnal" and only sleeps about six hours a day. The world's richest man made the comments during an August 5 episode of The Full Send podcast. He said he usually goes to sleep at about 3 a.m. and wakes up after about six hours at 9 a.m. or 9:30 a.m.

How Elon Musk organizes his day? ›

For example, Musk uses a timebox of 5 minutes. He then decides how many of these will be required to complete a particular task, and this is then added to his schedule. He then structures his entire day this way, filling up all available gaps. This might seem very limiting, but it can be a positive thing.

Is Elon Musk task oriented? ›

Musk is extremely task-focused and wants everyone to be 100% on board with his vision. He is known to set short deadlines with tight budgets and doesn't accept failure. He demands the best from every member of his teams and himself.

Who uses transformational leadership? ›

Jeff Bezos is seen by many as a great transformational leader. His leadership style Involves always pushing employees and staff to think about new products and possibilities. Amazon has taken e-commerce and delivery to an unprecedented level due to his transformational and innovative style.

What is transformational leadership style? ›

Transformational leadership is defined as a leadership approach that causes change in individuals and social systems. In its ideal form, it creates valuable and positive change in the followers with the end goal of developing followers into leaders.

Who has an IQ of 400? ›

Adragon De Mello: IQ 400

In 1988, when Adragon De Mello graduated from the University of California, Santa Cruz, with a degree in computational mathematics at the age of 11, he was the youngest college graduate in the United States (a record he no longer holds).

What is Kanye's IQ? ›

Kanye says he scored a 133 on Mensa IQ test, compares his brain to women's bodies - Consequence.

What is Bill Gates IQ level? ›

Stephen Hawking's IQ – How Yours Compares to His and Other Famous Persons' IQ
Name (First/Last)DescriptionIQ (SB)
Benjamin FranklinWriter, scientist & politician160
Benjamin NetanyahuIsraeli Prime Minister180
Bill GatesCEO, Microsoft160
Bill (William) Jefferson ClintonPresident137
111 more rows

Why Elon Musk is your role model Quora? ›

It's hard to know for sure but by comparing Elon with most other bright people that I have worked with, I would put his IQ at 160-165. He is very smart but he is also very determined and hard working. Together with his intelligence and vision, hard work is what makes him so successful.

What is Elon Musk famous for? ›

How did Elon Musk become famous? Elon Musk cofounded the electronic payment firm PayPal and founded the spacecraft company SpaceX. He became chief executive officer of the electric-car maker Tesla.

Who is your role model and why? ›

Your role model may be someone you know personally, professionally or someone you've never met, including: Family members. Friends. Past or current supervisors.

Where does Elon Musk get his inspiration? ›

From a young age, Musk became a fan of Isacc Asimov's books, gradually inspiring his interest in futurism while his father's career path cultivated his eye for design.

What is an example of transformational leadership? ›

Examples of Transformational Leadership

Oprah Winfrey: The media mogul is famous for her charismatic, visionary, and inspirational leadership style. Steve Jobs: Jobs was famous for his visionary leadership that transformed Apple into a leader in the technology industry.

What kind of manager is Elon Musk? ›

In 2015, Musk described himself as a "nano-manager" in an interview with The Wall Street Journal. "Diamonds are created under pressure, and Elon Musk is a master diamond maker," Dolly Singh, former head of talent acquisition at SpaceX, previously told Insider.

How did Elon Musk become so smart? ›

Another unique feature that has helped Musk become as smart as he is today is his passion for learning. By constantly learning about new topics and using his critical thinking skills, Elon Musk is able to maintain a strong sense of fluid thinking and crystal clear thinking.

What type of leader is Elon Musk? ›

Elon Musk's leadership style, transformational leadership, focuses on creating real positive change in the world. This type of leader is action-oriented. Instead of sitting around and philosophizing about how to change the world, they outline and execute a strategy that makes their vision a reality.

What effective leadership behaviors does Elon Musk demonstrate? ›

For better or worse, here are five things we've learned about leadership from Elon Musk.
  • Stay open to new ideas. As a child, Musk had a passion for science fiction books and movies. ...
  • Don't be afraid of failure. ...
  • Find a mentor. ...
  • Learn to say no. ...
  • Keep learning and stay curious.
27 Jul 2022

What made Elon Musk successful? ›

How did Elon Musk become famous? Elon Musk cofounded the electronic payment firm PayPal and founded the spacecraft company SpaceX. He became chief executive officer of the electric-car maker Tesla.

What makes Elon Musk a transformational leader? ›

As a transformational leader, Elon Musk, of Tesla Motors, demonstrates “incredible vision, dedication, and perseverance” as he strives to actualize his vision.

What skills do Elon Musk have? ›

His expertise ranges from rocket science, engineering, construction, tunneling, physics, and artificial intelligence to solar power and energy. In a previous article, I call people like Elon Musk modern polymaths. Modern polymaths: Follow the 5-hour rule and put at least 5 hours per week into learning.

What can we learn from Elon Musk? ›

Powerful Lessons you can Learn from Elon Musk
  • Be eccentric.
  • Connect ideas.
  • Follow your interests.
  • Learn constantly.
  • Assemble a great team.
  • Seek out criticism.
14 Jul 2022

Is Elon Musk an authentic leader? ›

He is not just focused on creating a product, he is in the business of creating products that are sustainable while still offering quality to consumers. When considering Elon Musk under the lens of authentic leadership, it is clear he has the necessary leadership traits.

Is Elon Musk participative leadership? ›

At this point, Elon shifts into Participative Leadership, which requires a leader to involve followers in decision-making by consulting with subordinates to get their opinions and input (Williams, 2018). In just this one example of Elon's leadership we can see Path-Goal Theory at work, whether he realizes it or not.

Is Elon Musk a charismatic leader? ›

Charismatic leaders such as Steve Jobs and Elon Musk are known for their inspirational characteristics, but we rarely hear about the other side of these personalities.

Why Elon Musk is your inspiration? ›

His ability to be passionate and also persistent to keep going forward even after multiple failures sets him apart from most. Elon Musk is an inspiration because of his ability to be passionate and persistent at the same time. He is always optimistic and not afraid to take risks, even after multiple failures.

What is Elon Musk's IQ? ›

Elon's IQ is estimated to be around 155, while Albert Einstein's is 160. With such a slight margin, Musk is undoubtedly an incredibly smart person. Who is the smartest person on earth in 2022?

Why is Elon Musk so successful as an entrepreneur? ›

The open mindset of big thinking is one of the prime factors of his success. Elon always had big plans and big dreams. He believes in the fact that big dreams prepare us for a higher level and demand higher work output with different thinking.

How has Elon Musk changed the world? ›

Elon created SpaceX, a space transport company. SpaceX made significant innovations and advancements in getting things and people into space. SpaceX is innovative because it lowers the cost of space exploration while drawing more attention to the potential to make money in space companies.

What is an example of transformational leadership? ›

Examples of Transformational Leadership

Oprah Winfrey: The media mogul is famous for her charismatic, visionary, and inspirational leadership style. Steve Jobs: Jobs was famous for his visionary leadership that transformed Apple into a leader in the technology industry.

Videos

1. The Management Style of Elon Musk. What we can Learn
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2. Elon Musk: A leadership case study | Jocko Willink and Lex Fridman
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3. 15 BEST LIFE & BUSINESS LESSONS FROM ELON MUSK
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4. Elon Musk on Time Management
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5. Elon Musk's Genius 5 Step Process To Innovate 10x Faster
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