Former Tesla President Says Tesla Benefits From Musk Leading Multiple Companies

Former Tesla President Says Tesla Benefits From Musk Leading Multiple Companies

In a recent interview on CNBC, former Tesla President Jon McNeill addressed concerns raised by Tesla investors regarding CEO Elon Musk’s management of the company. Investors had previously sent a letter to Tesla’s Board of Directors expressing concerns about Musk’s multiple commitments and the company’s governance.

McNeill defended Musk (video below), stating, “I don’t think he is too distracted. On the earnings call, he was answering questions on a deep level, like how neural nets work. He is involved, and he has always had a lot going on. He is incredible at managing his schedule and staying involved on key topics.” He also pointed out that Tesla still delivers more cars than ever, with a 36% jump in the first quarter.

Tesla’s solid margins and market leadership highlighted

The former Tesla President also emphasized the company’s strong margins, explaining, “Even though they cut prices six times this year, they still delivered more margin in the first quarter than anybody in the industry.” He acknowledged that Musk’s tendency to deliver on promises, albeit not always on time, could be frustrating for customers. However, he believes that the company’s ability to generate software revenue and other income streams in the future will make up for any current setbacks.

McNeill acknowledged the growing competition in the EV market and the autonomous vehicle sector, but he sees it as a driving force for innovation. “Competition is coming with autonomous vehicles, and there is a lot of capability to deliver margins off that platform and those cars. GM has a similar strategy, and others do too. It drives breakthroughs,” he said.

Musk has Access to the Best Engineers in the World

He also highlighted the benefits of Musk’s involvement in multiple companies, such as SpaceX, as it leads to cross-pollination of talent and innovation. “There are SpaceX materials engineers who really transform the way the Model Y gets produced. By moving that talent and content and switching them, you get the breakthroughs,” McNeill explained.

While understanding the investors’ concerns, McNeill shed light on the value that Musk’s multiple commitments bring to Tesla, which is often overlooked in the narrative. In addition, his defense of Musk’s management style serves as a counterpoint to the concerns raised by investors in their letter to Tesla’s Board of Directors.

As the EV market continues to grow and competition intensifies, it remains to be seen how Tesla will adapt to the changing landscape and address investor concerns. With McNeill’s insights, the debate around Musk’s management style and impact on the company will likely continue among investors and industry observers.

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