Elon’s Oops

Elon Musk reportedly cut 10% of his workforce this week, presumably at Tesla.

He gets an oops because he probably could have avoided the layoffs.

It’s good that he’s opened Tesla plants around the world, but the openings probably consumed some funds that could have been used for new model development.

The purchase of Twitter probably didn’t help the cash flow situation, either, and certainly consumed a lot of management time to make it profitable.

And there’s SpaceEx; mostly government capital, but certainly lots of management time.

So, we have a financial drain that could have been avoided, and a management drain.

How does he fix it: 1. Don’t further develop the cybertruck, because Ford’s already ahead of you; 2. Get the baby Tesla to market ASAP, because Ford might beat you at that, too. 3. On the span of control issue, stay off of Twitter at least, and don’t give so many interviews.

All of these things are fixable, and we wish Elon well. He’s one of the world’s all time great entrepreneurs.