Strategy

In internal Tesla memo, Elon Musk says the way most companies communicate is 'incredibly dumb'

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Elon Musk
Tesla CEO Elon Musk told employees that they're always free to talk to him.  AP Photo/Jack Plunkett

Tesla and SpaceX CEO Elon Musk is no stranger to tackling challenges — his companies work on everything from space suits to self-driving cars to miles of tunnels under Los Angeles.

They also work on communication.

In an email from Musk to Tesla employees published by Inc's Justin Bariso, Musk encourages employees to buck the traditional chain of command found in most companies, in which messages always flow through managers.

"The problem with this approach is that, while it serves to enhance the power of the manager, it fails to serve the company," he wrote.

He continued:

"Instead of a problem getting solved quickly, where a person in one dept talks to a person in another dept and makes the right thing happen, people are forced to talk to their manager who talks to their manager who talks to the manager in the other dept who talks to someone on his team. Then the info has to flow back the other way again. This is incredibly dumb. Any manager who allows this to happen, let alone encourages it, will soon find themselves working at another company. No kidding."

A better way, Musk wrote, is to speak to whomever you need, whenever you need, however it best serves the company.

"Anyone at Tesla can and should email/talk to anyone else according to what they think is the fastest way to solve a problem for the benefit of the whole company," he wrote. "You can talk to your manager's manager without his permission, you can talk directly to a VP in another dept, you can talk to me, you can talk to anyone without anyone else's permission."

In fact, he wrote, in the spirit of "ensuring that we execute ultra-fast and well," employees should consider themselves "obligated to do so until the right thing happens."

Bariso reports the email was sent to employees "a few years ago" and that Tesla confirmed its authenticity.

When your company is at the forefront of technology and space exploration, communication might seem like an afterthought. But, as Musk apparently recognized, poor communication can set everyone back. How are you supposed to accomplish anything if you're misspeaking or your colleagues don't respect you?

If diverging from the traditional chain of command doesn't work on clearing up communication, perhaps we should wait for Musk's next project — he raised $27 million with the aim of linking human brains with computers.

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Libby Kane was a personal finance expert who has reported and edited stories about money for more than 10 years. She previously held the Certified Financial Education Instructor (CFEI) certification issued by the National Financial Educators Council.Experience She has written and edited articles on everything from investing tips to model budgets and has interviewed dozens of authors, financial planners, and early retirees to share their advice, experiences, and insights with a global audience. Before joining Business Insider in 2014, she was an associate editor at LearnVest, a personal finance site to help women learn about money. Her work has appeared on sites such as MSN, AOL, Forbes, Slate, and The Street.Her team at Business Insider has tackled projects including:• Women of Means, a series about women taking control of their finances• Inside the Racial Wealth Gap, an exploration of the causes, effects, and potential solutions of the racial wealth gap in the US (finalist, Drum Award, "Editorial Campaign of the Year," 2021)• Strings Attached, a series of essays from people who have left insulated communities and how that journey affected their relationship with money• Master Your Money, a year-long guide for millennials on how to take control of their finances  (first runner up, Drum Award, "Best Use of Social Media," 2022)• The Road to Home, a comprehensive guide to buying your first house (silver award winner, National Association of Real Estate Editors, "Best Multi-Platform Package or Series – Real Estate," 2022)Libby believes in one universal truth about money: Advice is never for everyone. The best strategies, tools, and products depend on your preferences, financial situation, history with money, and goals.ExpertiseHer expertise includes:• Behavioral finance• Early retirement• Budgeting• Saving moneyEducationLibby holds a bachelor's degree from Wellesley College.Outside of personal finance, Libby enjoys reading, baking, and walking her dog.