Hey guys! Decided to make this quick post to share with you 5 business lessons from Elon Musk’s CyberTruck Release.
I believe these lessons will play a vital role in any businesses success moving forward in this digital age.
Story Content Triumphs Print Copy
- A couple years ago if you walked in to a public area sporting a jacket with the CyberTruck logo chances are that you will be qualified as a street gang member. The logo is hard to read and lacks every designers rule in what makes it appealing but not just the logo. The landing page failed to list any “gurus” tip in what makes landing pages convert. What Musk did instead is he focused on the story the audience will talk about relating to the CyberTruck based on the content released. They did not spend money on advertising but instead they spent money on a SHOW. Youtube influencers and bloggers on the front row, laser beams up above, Dj playing the right beats, every live stream available was focused on the SHOW. Musk focused on crafting the perfect story that the viewer will tell themselves about the Cybertruck.
o Keys- What story are people telling themselves about you or your business? Are you giving people enough content to allow them to create a good story about you and your product? A product will be sold way before you even offer it. If a product doesn’t align with peoples STORY about you then it will never sell. Take time to shape the story people tell themselves about you. A great book that talks more in depth is by Seth Godin, All Marketers Tell Stories.
- Basic human psychology understands the world in a contrast. Our brain is always looking for the opposite in order to better understand the world around us. Day/Night Open/Close Rich/Poor. Musk did not leave the media to influence the opposite of the CyberTruck because it would have discovered trucks like Rivian a truck that’s partnered by amazon technology or a truck by Lords Town Motors that teamed up with google. No! Those electric trucks are amazing beautiful machines and Musk wasn’t going to let that happen. So he compared the CyberTruck to Ford. Poor Ford, they had no idea.
o Keys- No one knows your business like you. You have the power to throw rocks at your enemies. If you don’t some one else will on your behalf. Create the contrast that favors you. This is commonly used by politicians and lawyers. Great book that shares powerful insights is by Jonah Berger, Invisible Influence.
Weaknesses into Strengths
- Tesla now understands what they suck at. They are really bad at trying to create a new procedure for creating an old product. They lost so much time and money because they couldn’t put a car together. They were trying to redesign the wheel. Musk said Screw all that. Let’s start from the beginning. So for the truck they re engineered how a vehicle gets assembled. The CyberTruck is designed in a way that requires very few moving parts. The whole shell can get stamped out creating 75% of the truck in one day. So instead of them trying to create a puzzle with 5,000 pieces, they are now able to create a puzzle with only 500 pieces. They can now make sure that the 500 pieces are bad ass, based on what they already know. For anyone to compete with the CyberTruck they need to know what Tesla already learned by all their screw ups.
o Keys- Take inventory of what you really suck at and what you are really good at. Try to improve what you suck at and if it’s just not clicking then toss it to the side. Now look at what your good at and double down and go all in. There are no boundaries in this digital age. Learn the information but don’t marry the strategy. Create your own path and no one will ever be able to compete with you because no one has ever walked the same path filled with the same screw-ups as you did. There’s a Strategy in Roberts Greene, The 33 Strategy of War that goes in detail. Strategy #8, Pick Your Battle Carefully, The Perfect Economy Strategy.
Avoid Losing Leverage
- Avoid Losing Leverage- Elon Musk is no stranger in raising money. He puts in a lot of his own money in but still 70% of his business ventures are back by investors; by public or private funding. Either way he mentions that he doesn’t like to lose leverage on any of his businesses. That’s the reason why Space X is still private. Once Tesla went public all the share holders wanted answers and not concerning the product quality or the companies mission but concerning their MONEY. With the Cyber Truck he knew it was going to be a similar story. So instead of Raising 20 million from 1-4 sources he raised 20 million from 20,000 sources allowing him to keep leverage over the project. If 2 people wanted their money back after they gave him 4 million each. It will put a dent. But if 2 people wanted their money back after giving him 100 bucks each. He won’t even realize it.
o Keys- For a long time I thought having one high end customer will be better than 200. I failed to realize that if that 1 customer is unhappy. That will bring in so much stress and that’s because I gave up all my business leverage to that one customer. That one customer will have the power over my business depending if they paid the invoice or not. Similar to a job. I don’t have a book to recommend but I have a quote from Henry Ford – “Sell to the masses, and live with the classes; Sell to the classes and live with the masses”
Speed is King
- Producing an electric truck was not a secret. It was actually a race. Huge companies like, Range Rover, Toyota and Lexus, Ford, Chevy all were in the run for producing the first manufactured all electric truck. 2020 was scheduled to be the year many of this manufactures where going to be releasing their electric trucks to the public. But Mr. Musk like a 5th grader wanting to get the price for turning in his paper first; jumped up unexpected and released his Cyber Truck. It was a brilliant check mate move. All other trucks will have to be compared to the specs that he set. He created the bar so that if your electric truck can’t take a sledgehammer to the door. I don’t want it. Lol
o Keys- This lesson sums all the previous lessons. You might fail; you might win either way those are not opposites. The opposite is actually doing nothing and waiting. Go at it like a fearless 5thgrader gathering up your strengths to jump over that sketchy ramp on your bike. Create a show for others to judge you on and embrace the journey. Accept all attention good or bad either way you’re alive to enjoy it. I have a poem that I often listen when I’m unsure of my business path that I’ll like to recommend. A poem from Charles Bukowski – All The Way.
I really hope these lessons can help you with your business in today’s fast paced digital world. Elon Musk is a phenomenal business entrepreneur that I look for business lessons. I learned so much from him at a distance and hope you can relate with some of these lessons.
Do you agree with any lessons I shared? Do you have a different opinion?