At an all-hands gathering on Thursday, CEO Elon Musk urged employees to retain their shares.
In most companies, the recent impromptu evening all-hands meeting led by Elon Musk would have triggered severe alarm bells. However, Musk’s unique position as the face of Tesla — seemingly unbound by the conventional practices that govern other executives — allows him a certain level of leeway that few can match. The critical question remains: how much longer can he maintain this flexibility?
Despite persuading staff to sleep at the office or work in makeshift tents in the past, experts caution that Musk’s tolerance from employees, investors, and customers may be reaching its limit. “There’s no scenario where he can juggle so many responsibilities simultaneously and it all ends well,” remarked Wil Schroter, the founder and CEO of Startups.com, citing Musk’s extensive commitments across multiple companies, including Tesla, X, and SpaceX while simultaneously attempting to transform the federal government.
A Tall Order for Employees
Melissa Schilling, a management expert at New York University’s Stern School of Business, noted that Musk’s decision to call a company-wide meeting with little advance notice — scheduled to begin around 9 p.m. in Austin, exacerbated by tech issues that delayed its start — conveyed several negative messages. Schilling asserted that one of these signals was uncertainty. “That’s a precarious situation for someone who is so integral to the brand,” she stated, adding that scheduling a meeting during prime bedtime can undermine employee morale.
“When you imply that employees’ time doesn’t matter, you significantly damage the relationship,” she explained. Schilling highlighted that while it may have been acceptable for Musk to flaunt corporate norms in the early days of Tesla, time has moved on. “He no longer has the luxury to engage in boyish antics,” she concluded.
Musk did not respond to a request for comment from Business Insider. Schroter contended that while Musk frequently enjoys the benefit of the doubt, a major crisis — such as a significant drop in Tesla shares from their previous high, which have already declined by about 50% — might change that dynamic. “In such a scenario, you can’t go on doing whatever you feel like,” he remarked, referring to Musk’s other engagements, including his role in advising the government.
Resting on the Couch
Musk’s approach to work is not new. The world’s richest individual has openly admitted to sleeping on the factory floor during struggles with production for the Model 3, as well as crashing on a couch while revamping Twitter into X. While aspects of Musk’s behavior may fit the mold of a founding entrepreneur, Schilling remarked that the timing of the recent meeting suggested a lack of preparedness on Musk’s part.
Tesla has recently encountered instances of vandalism at its facilities, which Musk associates with those on the political left, while also facing a decline in stock value. However, after Musk’s recent meeting, Tesla shares showed signs of recovery, likely buoyed by Musk’s appeals to staff to hold onto their shares and enthusiasm for the Cybercab initiative.
A Whirlwind of Activity
Dorie Clark, a communication coach from Columbia Business School and author of The Long Game, explained that Musk’s ability to convene a last-minute evening meeting without raising eyebrows in most typical corporate environments stems from public perception of him as “a little bit chaotic” and non-traditional. “This is a man who smoked marijuana on the Joe Rogan podcast,” she pointed out. According to Clark, Musk’s established reputation as an impulsive, passionate leader could mitigate concerns regarding his unpredictability.
She suggested that the meeting could have sent a reassuring message to employees that Musk remains engaged and concerned about the company. Nonetheless, Clark warned that just this display of dedication might not suffice to maintain staff and investor confidence without further substantive actions to address Tesla’s challenges.
The Steve Jobs Paradox
Schroter opined that Musk’s choice to engage directly with employees was more impactful than sending a conventional email or relying on a communications team. “There’s a distinct difference when you speak directly to people, even over Zoom; they can see your emotions,” he noted. This method fosters a connection that conveys shared concerns. Yet, Schroter cautioned that how much leaders can demand from their teams correlates with how much the team is willing to go through with them.
He argued that, like Steve Jobs of Apple, Musk commands such loyalty from his employees that they strive to meet high expectations, including putting in long hours. “There’s only one Elon Musk,” he declared. “I’m not idolizing him; I’m just stating facts.” Schroter acknowledged that while Musk has a history of emerging successfully from challenges, “99.9% of CEOs” lack the freedom to make demands of their staff to the same extent. “His followers, the ones who work for him, believe fervently in the cult of Elon,” he concluded. “Most founders or CEOs can’t generate that kind of pull.”
