The Tesla Playbook for Explosive Growth | Jon McNeill & Ed Mylett

China's twice us. They do 30 million new China's twice us. They do 30 million new cars a year. So, if you're running a car cars a year. So, if you're running a car cars a year. So, if you're running a car company that's tight on cash, eventually company that's tight on cash, eventually company that's tight on cash, eventually you want to get to China because it's a you want to get to China because it's a you want to get to China because it's a huge market. Every American company that huge market. Every American company that huge market. Every American company that goes to China has to have a joint goes to China has to have a joint goes to China has to have a joint venture. And the requirements of the venture. And the requirements of the venture. And the requirements of the joint venture are you split the cash joint venture are you split the cash joint venture are you split the cash 50/50. So, we we started to question our 50/50. So, we we started to question our 50/50. So, we we started to question our China team and said, "Is there a way China team and said, "Is there a way China team and said, "Is there a way that we could do this without a joint that we could do this without a joint that we could do this without a joint venture?" And they said, "No way. No venture?" And they said, "No way. No venture?" And they said, "No way. No way. No way." And so, Elon, I could see way. No way." And so, Elon, I could see way. No way." And so, Elon, I could see he's getting this twinkle in his eyes. he's getting this twinkle in his eyes. he's getting this twinkle in his eyes. He turns to me. He's like, "Would you be He turns to me. He's like, "Would you be He turns to me. He's like, "Would you be up for the first joint venture in China up for the first joint venture in China up for the first joint venture in China that doesn't share any economics if that doesn't share any economics if that doesn't share any economics if challenge accepted?" Like to compete challenge accepted?" Like to compete challenge accepted?" Like to compete with the Chinese, we had to take like with the Chinese, we had to take like with the Chinese, we had to take like 50% of the cost out. Uh he turns to us 50% of the cost out. Uh he turns to us 50% of the cost out. Uh he turns to us and says, "Guys, can you figure out a and says, "Guys, can you figure out a and says, "Guys, can you figure out a way to take 50% of the cost out?" So way to take 50% of the cost out?" So way to take 50% of the cost out?" So Doug and I go for a walk. And Doug and I Doug and I go for a walk. And Doug and I Doug and I go for a walk. And Doug and I are in the middle of the factory between are in the middle of the factory between are in the middle of the factory between the two halves and we're looking at this the two halves and we're looking at this the two halves and we're looking at this end of the factory that's all robots and end of the factory that's all robots and end of the factory that's all robots and uh and building the skeleton. And Doug uh and building the skeleton. And Doug uh and building the skeleton. And Doug says, "I think I have an idea to get rid says, "I think I have an idea to get rid says, "I think I have an idea to get rid of 50% of this." He comes in the next of 50% of this." He comes in the next of 50% of this." He comes in the next day. He says, "Here's the idea." and he day. He says, "Here's the idea." and he day. He says, "Here's the idea." and he rolls a Matchbox car across the table at rolls a Matchbox car across the table at rolls a Matchbox car across the table at me. I'm like, Doug, what's is this toy me. I'm like, Doug, what's is this toy me. I'm like, Doug, what's is this toy car? It's as big as my thumb. He said, car? It's as big as my thumb. He said, car? It's as big as my thumb. He said, "Yeah, this thing isn't welded. It's "Yeah, this thing isn't welded. It's "Yeah, this thing isn't welded. It's casted." He's like, "I think we could casted." He's like, "I think we could casted." He's like, "I think we could figure this out." figure this out." figure this out." >> I mean, he's actually said, I think I >> I mean, he's actually said, I think I >> I mean, he's actually said, I think I quote him correctly where he says, "I I quote him correctly where he says, "I I quote him correctly where he says, "I I don't think we're going to have a don't think we're going to have a don't think we're going to have a workforce anymore. We're going to have, workforce anymore. We're going to have, workforce anymore. We're going to have, you know, guaranteed minimum income. you know, guaranteed minimum income. you know, guaranteed minimum income. Everyone's going to be kind of floating Everyone's going to be kind of floating Everyone's going to be kind of floating around and the robots are going to do around and the robots are going to do around and the robots are going to do everything." I'm oversimplifying, but everything." I'm oversimplifying, but everything." I'm oversimplifying, but not by a lot. What do you see the next not by a lot. What do you see the next not by a lot. What do you see the next five years in the changes, the warnings, five years in the changes, the warnings, five years in the changes, the warnings, the sense of direction you would give? Okay, welcome back to the show Okay, welcome back to the show everybody. So, today is going to be everybody. So, today is going to be everybody. So, today is going to be tremendous. I just finished reading this tremendous. I just finished reading this tremendous. I just finished reading this book. I have to tell you all it's book. I have to tell you all it's book. I have to tell you all it's probably read 2,000 books for the show. probably read 2,000 books for the show. probably read 2,000 books for the show. I put this in the top 1% of all the I put this in the top 1% of all the I put this in the top 1% of all the books I've read doing this show. books I've read doing this show. books I've read doing this show. >> Um, the author, he's had a little bit of >> Um, the author, he's had a little bit of >> Um, the author, he's had a little bit of success in his life. Uh he was the success in his life. Uh he was the success in his life. Uh he was the president of Tesla. You've heard of them president of Tesla. You've heard of them president of Tesla. You've heard of them before. CEO of Lyft. He sits on the before. CEO of Lyft. He sits on the before. CEO of Lyft. He sits on the board of General Motors and Lululemon. board of General Motors and Lululemon. board of General Motors and Lululemon. He's had a bunch of exits himself. This He's had a bunch of exits himself. This He's had a bunch of exits himself. This is a true I'd call like a master class is a true I'd call like a master class is a true I'd call like a master class in business with a theory and a in business with a theory and a in business with a theory and a philosophy that you'll be able to follow philosophy that you'll be able to follow philosophy that you'll be able to follow today. So, it's heavy notetaking as today. So, it's heavy notetaking as today. So, it's heavy notetaking as well. I'm really excited to have him well. I'm really excited to have him well. I'm really excited to have him here today. And then I didn't know he here today. And then I didn't know he here today. And then I didn't know he was a Boston dude as well. So, it's was a Boston dude as well. So, it's was a Boston dude as well. So, it's great to have you here today, brother. great to have you here today, brother. great to have you here today, brother. John McNeel, welcome to the show. John McNeel, welcome to the show. John McNeel, welcome to the show. >> Thanks. Thanks for having me, Ed. Yeah, >> Thanks. Thanks for having me, Ed. Yeah, >> Thanks. Thanks for having me, Ed. Yeah, I uh I've told you I've taken I uh I've told you I've taken I uh I've told you I've taken screenshots of the book and sending it screenshots of the book and sending it screenshots of the book and sending it to friends of mine. As someone who's to friends of mine. As someone who's to friends of mine. As someone who's built some businesses and exited, I built some businesses and exited, I built some businesses and exited, I think I know when I read something true, think I know when I read something true, think I know when I read something true, but I think I also know when I've read but I think I also know when I've read but I think I also know when I've read something I've not read before. something I've not read before. something I've not read before. >> And so the book you guys is the >> And so the book you guys is the >> And so the book you guys is the algorithm. I want to make sure I get algorithm. I want to make sure I get algorithm. I want to make sure I get that in early. And it's really like a that in early. And it's really like a that in early. And it's really like a five-step algorithm that you talk about five-step algorithm that you talk about five-step algorithm that you talk about that I was asking around like is this that I was asking around like is this that I was asking around like is this his? Did he learn it from Alain? You his? Did he learn it from Alain? You his? Did he learn it from Alain? You know, kind of back and forth. And so why know, kind of back and forth. And so why know, kind of back and forth. And so why don't we start with where this comes don't we start with where this comes don't we start with where this comes from? I know from reading the book and from? I know from reading the book and from? I know from reading the book and then a brief overview of the five steps then a brief overview of the five steps then a brief overview of the five steps of the algorithm. of the algorithm. of the algorithm. >> Yeah. So where this comes from is is a >> Yeah. So where this comes from is is a >> Yeah. So where this comes from is is a framework we developed while we were framework we developed while we were framework we developed while we were trying to grow Tesla from two billion in trying to grow Tesla from two billion in trying to grow Tesla from two billion in sales to 20 billion in sales in 30 sales to 20 billion in sales in 30 sales to 20 billion in sales in 30 months. months. months. >> Crazy. >> Crazy. >> Crazy. >> So 10x in 30 months. No playbooks for >> So 10x in 30 months. No playbooks for >> So 10x in 30 months. No playbooks for that. Uh no like case studies you could that. Uh no like case studies you could that. Uh no like case studies you could go read. So we were really kind of go read. So we were really kind of go read. So we were really kind of inventing it as we went. inventing it as we went. inventing it as we went. >> And we started to see these patterns in >> And we started to see these patterns in >> And we started to see these patterns in in attacking challenges. And so we we in attacking challenges. And so we we in attacking challenges. And so we we baked that down into what we called the baked that down into what we called the baked that down into what we called the algorithm so that we could communicate algorithm so that we could communicate algorithm so that we could communicate it. So people would know like if we were it. So people would know like if we were it. So people would know like if we were if we were working with the team what we if we were working with the team what we if we were working with the team what we were up to, but we also wanted the teams were up to, but we also wanted the teams were up to, but we also wanted the teams to know they could use this tool too. It to know they could use this tool too. It to know they could use this tool too. It didn't require Elon. Uh it didn't didn't require Elon. Uh it didn't didn't require Elon. Uh it didn't require me. Uh and so I would say it require me. Uh and so I would say it require me. Uh and so I would say it >> it was something that we cooked up and >> it was something that we cooked up and >> it was something that we cooked up and invented while we were on this journey, invented while we were on this journey, invented while we were on this journey, the whole company together. And part of the whole company together. And part of the whole company together. And part of it like as we'll go through the steps it like as we'll go through the steps it like as we'll go through the steps here in a second more and more as here in a second more and more as here in a second more and more as technologies changed now with the advent technologies changed now with the advent technologies changed now with the advent of AI I think this is even more of AI I think this is even more of AI I think this is even more relevant. You correct me if I'm wrong relevant. You correct me if I'm wrong relevant. You correct me if I'm wrong but part of this is about speed and but part of this is about speed and but part of this is about speed and efficiency. I would almost call efficiency. I would almost call efficiency. I would almost call >> it's a lot about speed and efficiency >> it's a lot about speed and efficiency >> it's a lot about speed and efficiency because you have to move so fast and in because you have to move so fast and in because you have to move so fast and in our case we were growing from 4,000 our case we were growing from 4,000 our case we were growing from 4,000 people to 40,000 people. So you've got people to 40,000 people. So you've got people to 40,000 people. So you've got to have 40,000 humans making very rapid to have 40,000 humans making very rapid to have 40,000 humans making very rapid decisions way faster than we could make decisions way faster than we could make decisions way faster than we could make them. Uh and so part of the goal here them. Uh and so part of the goal here them. Uh and so part of the goal here was to equip the front lines. And that's was to equip the front lines. And that's was to equip the front lines. And that's why the book is told through the stories why the book is told through the stories why the book is told through the stories of the people that are on the front of the people that are on the front of the people that are on the front lines. Yes. Uh because you can see lines. Yes. Uh because you can see lines. Yes. Uh because you can see normal everyday people are doing this. normal everyday people are doing this. normal everyday people are doing this. >> It is. And um one thing and again I'm >> It is. And um one thing and again I'm >> It is. And um one thing and again I'm teasing the five. We're going to get teasing the five. We're going to get teasing the five. We're going to get into the five parts of the algorithm into the five parts of the algorithm into the five parts of the algorithm here in a minute. By the way, the reason here in a minute. By the way, the reason here in a minute. By the way, the reason I'm willing to do that is I want you all I'm willing to do that is I want you all I'm willing to do that is I want you all to know this. The book is so thick with to know this. The book is so thick with to know this. The book is so thick with information that just knowing the broad information that just knowing the broad information that just knowing the broad overview of the algorithm is not overview of the algorithm is not overview of the algorithm is not sufficient in learning what's in the sufficient in learning what's in the sufficient in learning what's in the book. So I think we're comfortable going book. So I think we're comfortable going book. So I think we're comfortable going into it. But I wanted to start out. One into it. But I wanted to start out. One into it. But I wanted to start out. One thing that surprised me when Alain hires thing that surprised me when Alain hires thing that surprised me when Alain hires you, right? This is a rule for business you, right? This is a rule for business you, right? This is a rule for business that I didn't think of. He says to you, that I didn't think of. He says to you, that I didn't think of. He says to you, you say in the book that he was looking you say in the book that he was looking you say in the book that he was looking for another entrepreneur to be kind of for another entrepreneur to be kind of for another entrepreneur to be kind of his right hand and a guy slash that was his right hand and a guy slash that was his right hand and a guy slash that was used to almost running out of cash most used to almost running out of cash most used to almost running out of cash most of the time. Yeah, of the time. Yeah, of the time. Yeah, >> that just surprised me. Normally, I'd be >> that just surprised me. Normally, I'd be >> that just surprised me. Normally, I'd be thinking I'm the entrepreneur. I want to thinking I'm the entrepreneur. I want to thinking I'm the entrepreneur. I want to hire an operator. But that's absolutely hire an operator. But that's absolutely hire an operator. But that's absolutely not what he was looking for in you. not what he was looking for in you. not what he was looking for in you. >> No, he tends to hire orthogonally is >> No, he tends to hire orthogonally is >> No, he tends to hire orthogonally is what he calls it. people that have not what he calls it. people that have not what he calls it. people that have not been in the industry or role before. So been in the industry or role before. So been in the industry or role before. So the entire management team really nobody the entire management team really nobody the entire management team really nobody had been in the car business and when we had been in the car business and when we had been in the car business and when we were getting to know each other I kept were getting to know each other I kept were getting to know each other I kept saying to him I don't think I'm your saying to him I don't think I'm your saying to him I don't think I'm your guy. guy. guy. >> I think you need a big company guy. I >> I think you need a big company guy. I >> I think you need a big company guy. I mean your your your company's bigger mean your your your company's bigger mean your your your company's bigger than twice as big as my biggest company. than twice as big as my biggest company. than twice as big as my biggest company. >> And uh he said no no that's exactly what >> And uh he said no no that's exactly what >> And uh he said no no that's exactly what I don't need. I don't need. I don't need. >> And I said why? He said, "I need, as you >> And I said why? He said, "I need, as you >> And I said why? He said, "I need, as you said," he said, "I need a fellow said," he said, "I need a fellow said," he said, "I need a fellow entrepreneur because you know what it's entrepreneur because you know what it's entrepreneur because you know what it's like to carry the burden of payroll on like to carry the burden of payroll on like to carry the burden of payroll on your back your back your back >> and going to sleep at night making sure >> and going to sleep at night making sure >> and going to sleep at night making sure that you can make payroll the next that you can make payroll the next that you can make payroll the next week." week." week." >> That's a pressure that that big company >> That's a pressure that that big company >> That's a pressure that that big company people haven't faced. people haven't faced. people haven't faced. >> And he said, "You need to know the >> And he said, "You need to know the >> And he said, "You need to know the entrepreneurs's kind of life burden." entrepreneurs's kind of life burden." entrepreneurs's kind of life burden." Yeah. Yeah. Yeah. >> Which is in his in in his words, it's >> Which is in his in in his words, it's >> Which is in his in in his words, it's staring into the abyss while chewing staring into the abyss while chewing staring into the abyss while chewing glass. glass. glass. >> That's good. He's like, "I need somebody >> That's good. He's like, "I need somebody >> That's good. He's like, "I need somebody that's been through that." And he said, that's been through that." And he said, that's been through that." And he said, "The other thing that entrepreneurs know "The other thing that entrepreneurs know "The other thing that entrepreneurs know how to do is all allocate capital." how to do is all allocate capital." how to do is all allocate capital." >> Yeah. >> Yeah. >> Yeah. >> Because you have you don't have >> Because you have you don't have >> Because you have you don't have unlimited capital. You can't go to the unlimited capital. You can't go to the unlimited capital. You can't go to the market typically as an entrepreneur. market typically as an entrepreneur. market typically as an entrepreneur. >> And so he said, "I run this place like a >> And so he said, "I run this place like a >> And so he said, "I run this place like a private company." private company." private company." >> Yeah. >> Yeah. >> Yeah. >> And so we don't carry much cash on the >> And so we don't carry much cash on the >> And so we don't carry much cash on the balance sheet. balance sheet. balance sheet. >> Every nickel has to matter. >> Every nickel has to matter. >> Every nickel has to matter. >> Well, not only do you not carry a lot of >> Well, not only do you not carry a lot of >> Well, not only do you not carry a lot of cash on the balance sheet, this blew my cash on the balance sheet, this blew my cash on the balance sheet, this blew my mind. This is Tesla, right? Right. And mind. This is Tesla, right? Right. And mind. This is Tesla, right? Right. And now as we fast forward, we're looking at now as we fast forward, we're looking at now as we fast forward, we're looking at in his case, arguably probably the first in his case, arguably probably the first in his case, arguably probably the first trillionaire in the country. Certainly trillionaire in the country. Certainly trillionaire in the country. Certainly creeping on his way. He's on his way. creeping on his way. He's on his way. creeping on his way. He's on his way. He's he's the odds on favorite if we're He's he's the odds on favorite if we're He's he's the odds on favorite if we're going to have one, right? going to have one, right? going to have one, right? >> But the company actually had three >> But the company actually had three >> But the company actually had three months operating cash at any given time. months operating cash at any given time. months operating cash at any given time. >> Right. >> Right. >> Right. >> That's incredible to me. Three months >> That's incredible to me. Three months >> That's incredible to me. Three months cash on a company on that scale and that cash on a company on that scale and that cash on a company on that scale and that scope that wanted to grow that quickly. scope that wanted to grow that quickly. scope that wanted to grow that quickly. >> Yeah. >> Yeah. >> Yeah. >> And again, this is his mindset as an >> And again, this is his mindset as an >> And again, this is his mindset as an entrepreneur. If you if you fill the entrepreneur. If you if you fill the entrepreneur. If you if you fill the balance sheet with a lot of cash, people balance sheet with a lot of cash, people balance sheet with a lot of cash, people get soft in his words. So he said, you get soft in his words. So he said, you get soft in his words. So he said, you know, I want imminent death around the know, I want imminent death around the know, I want imminent death around the corner. Gosh. And it was even tighter corner. Gosh. And it was even tighter corner. Gosh. And it was even tighter than that. Ed, we had 3 months worth of than that. Ed, we had 3 months worth of than that. Ed, we had 3 months worth of cash. We had 70 days of payables. cash. We had 70 days of payables. cash. We had 70 days of payables. >> That's crazy. >> That's crazy. >> That's crazy. >> So we had 20 days of cash. >> So we had 20 days of cash. >> So we had 20 days of cash. >> That's crazy. >> That's crazy. >> That's crazy. >> There was no room for error in this >> There was no room for error in this >> There was no room for error in this equation. You know what it made me I equation. You know what it made me I equation. You know what it made me I wasn't this isn't in my notes. I wanted wasn't this isn't in my notes. I wanted wasn't this isn't in my notes. I wanted to ask you, but I want to ask your to ask you, but I want to ask your to ask you, but I want to ask your opinion about this. It's not in the opinion about this. It's not in the opinion about this. It's not in the book. We'll shift just for a second. book. We'll shift just for a second. book. We'll shift just for a second. Based on that and that experience and Based on that and that experience and Based on that and that experience and that philosophy, you know that you know that philosophy, you know that you know that philosophy, you know that you know the world we live in now, everybody's the world we live in now, everybody's the world we live in now, everybody's raising money. raising money. raising money. >> Yeah. >> Yeah. >> Yeah. >> Everyone's giving away equity quickly. >> Everyone's giving away equity quickly. >> Everyone's giving away equity quickly. It's a raise raise literally. Yeah. It's a raise raise literally. Yeah. It's a raise raise literally. Yeah. >> Almost daily, probably like you, I'm >> Almost daily, probably like you, I'm >> Almost daily, probably like you, I'm getting hit with some raise for some getting hit with some raise for some getting hit with some raise for some thing. thing. thing. >> And I've always felt like sometimes >> And I've always felt like sometimes >> And I've always felt like sometimes these folks that are raising money these folks that are raising money these folks that are raising money prematurely are they've got a false prematurely are they've got a false prematurely are they've got a false sense of reality in terms of success of sense of reality in terms of success of sense of reality in terms of success of the business, in terms of cash, cash on the business, in terms of cash, cash on the business, in terms of cash, cash on paper, etc. Do you kind of think that paper, etc. Do you kind of think that paper, etc. Do you kind of think that culturally that's a almost a perversion culturally that's a almost a perversion culturally that's a almost a perversion that's happened in the business that's happened in the business that's happened in the business marketplace? marketplace? marketplace? >> I think it's a real watch out and I >> I think it's a real watch out and I >> I think it's a real watch out and I talked to young CEOs about this about talked to young CEOs about this about talked to young CEOs about this about this very topic like if you load your this very topic like if you load your this very topic like if you load your balance sheet up balance sheet up balance sheet up >> Yeah. >> Yeah. >> Yeah. >> Everybody in the company knows that. >> Everybody in the company knows that. >> Everybody in the company knows that. >> And so therefore people aren't rubbing >> And so therefore people aren't rubbing >> And so therefore people aren't rubbing nickels together. Yeah. nickels together. Yeah. nickels together. Yeah. >> They're not being efficient. >> They're not being efficient. >> They're not being efficient. >> Uh they're being expedient. And when >> Uh they're being expedient. And when >> Uh they're being expedient. And when you're expedient you're burning cash. you're expedient you're burning cash. you're expedient you're burning cash. And when you're burning cash as an And when you're burning cash as an And when you're burning cash as an entrepreneur you're giving away your entrepreneur you're giving away your entrepreneur you're giving away your equity. equity. equity. >> That's absolutely >> That's absolutely >> That's absolutely >> so expensive. >> so expensive. >> so expensive. >> It is. This is so good. Okay. So based >> It is. This is so good. Okay. So based >> It is. This is so good. Okay. So based on all of that now with that backdrop on all of that now with that backdrop on all of that now with that backdrop talk to us about the algorithm. talk to us about the algorithm. talk to us about the algorithm. >> So the algorithm we basically we came up >> So the algorithm we basically we came up >> So the algorithm we basically we came up with these five steps that were that are with these five steps that were that are with these five steps that were that are core to how we drive innovation and core to how we drive innovation and core to how we drive innovation and solve problems. So uh so I'll just run solve problems. So uh so I'll just run solve problems. So uh so I'll just run through the five steps. Then we can talk through the five steps. Then we can talk through the five steps. Then we can talk through some examples of these. But the through some examples of these. But the through some examples of these. But the first step is essentially question first step is essentially question first step is essentially question everything. everything. everything. >> Question every requirement that >> Question every requirement that >> Question every requirement that somebody's given you question the status somebody's given you question the status somebody's given you question the status quo. Uh question question so you can rip quo. Uh question question so you can rip quo. Uh question question so you can rip into what the essentials are that you into what the essentials are that you into what the essentials are that you need to you need to deliver. Once you need to you need to deliver. Once you need to you need to deliver. Once you know that, then then you develop a know that, then then you develop a know that, then then you develop a process from end to end that delivers process from end to end that delivers process from end to end that delivers that the most efficiently. that the most efficiently. that the most efficiently. >> Then you optimize the heck out of that >> Then you optimize the heck out of that >> Then you optimize the heck out of that just by doing it manually. just by doing it manually. just by doing it manually. >> And uh and we'll get into some examples >> And uh and we'll get into some examples >> And uh and we'll get into some examples of that. Uh and then you apply speed. of that. Uh and then you apply speed. of that. Uh and then you apply speed. >> Yeah. >> Yeah. >> Yeah. >> Because you cannot have a process >> Because you cannot have a process >> Because you cannot have a process deliver quality with speed or without uh deliver quality with speed or without uh deliver quality with speed or without uh you can't have speed without quality. So you can't have speed without quality. So you can't have speed without quality. So you get both. And then uh this is you get both. And then uh this is you get both. And then uh this is surprising the last step given that surprising the last step given that surprising the last step given that we're tech people. we're tech people. we're tech people. >> The last step is automate last. >> The last step is automate last. >> The last step is automate last. >> Yeah. >> Yeah. >> Yeah. >> Because if you automate upfront, you're >> Because if you automate upfront, you're >> Because if you automate upfront, you're pouring concrete around your process. pouring concrete around your process. pouring concrete around your process. And if you discover improvements, it's And if you discover improvements, it's And if you discover improvements, it's really hard to improve it because now really hard to improve it because now really hard to improve it because now you got to go blast out the concrete of you got to go blast out the concrete of you got to go blast out the concrete of the software you developed. the software you developed. the software you developed. >> So uh so those are the five steps of the >> So uh so those are the five steps of the >> So uh so those are the five steps of the algorithm. algorithm. algorithm. >> Let's talk about the application on >> Let's talk about the application on >> Let's talk about the application on them. And by the way everybody, you got them. And by the way everybody, you got them. And by the way everybody, you got to get the book because the level of the to get the book because the level of the to get the book because the level of the the stories that are in the book sort of the stories that are in the book sort of the stories that are in the book sort of illustrate the principles better than illustrate the principles better than illustrate the principles better than even probably what you and I will be even probably what you and I will be even probably what you and I will be able to do today. But one of the stories able to do today. But one of the stories able to do today. But one of the stories in the book I've tried to do business in in the book I've tried to do business in in the book I've tried to do business in China a couple times. China a couple times. China a couple times. >> Yeah. >> Yeah. >> Yeah. >> And it's sort of known in I don't I'm >> And it's sort of known in I don't I'm >> And it's sort of known in I don't I'm probably overstating this. I got to be probably overstating this. I got to be probably overstating this. I got to be careful. But it's sort of known in the careful. But it's sort of known in the careful. But it's sort of known in the business world. It is the hardest place business world. It is the hardest place business world. It is the hardest place of the developed nations to try to go do of the developed nations to try to go do of the developed nations to try to go do business. business. business. >> And in your case, if you're going to go >> And in your case, if you're going to go >> And in your case, if you're going to go over there and build a factory, they're over there and build a factory, they're over there and build a factory, they're getting a piece of it, right? And you getting a piece of it, right? And you getting a piece of it, right? And you have this great story in the book where have this great story in the book where have this great story in the book where Alain says to you, "No, we're going to Alain says to you, "No, we're going to Alain says to you, "No, we're going to own everything in there." And you go own everything in there." And you go own everything in there." And you go over there and get this thing done. So I over there and get this thing done. So I over there and get this thing done. So I to me that follows that falls under to me that follows that falls under to me that follows that falls under question everything. Like is it true question everything. Like is it true question everything. Like is it true that that's the case? Can you tell them that that's the case? Can you tell them that that's the case? Can you tell them that story? that story? that story? >> Yeah. So we're So uh in the US we >> Yeah. So we're So uh in the US we >> Yeah. So we're So uh in the US we produce 15 million new cars a year. Uh produce 15 million new cars a year. Uh produce 15 million new cars a year. Uh and historically we've been the biggest and historically we've been the biggest and historically we've been the biggest in the world. Uh China's twice us. They in the world. Uh China's twice us. They in the world. Uh China's twice us. They do 30 million new cars a year. So if do 30 million new cars a year. So if do 30 million new cars a year. So if you're running a car company uh that's you're running a car company uh that's you're running a car company uh that's tight on cash eventually you want to get tight on cash eventually you want to get tight on cash eventually you want to get to China because it's huge market. to China because it's huge market. to China because it's huge market. >> Um but as we sat down with our China >> Um but as we sat down with our China >> Um but as we sat down with our China teams they said hey you have to realize teams they said hey you have to realize teams they said hey you have to realize that every American company that goes to that every American company that goes to that every American company that goes to China has to have a joint venture and China has to have a joint venture and China has to have a joint venture and the requirements of the joint venture the requirements of the joint venture the requirements of the joint venture are you split the cash 50/50 are you split the cash 50/50 are you split the cash 50/50 >> uh they the profits and so that meant we >> uh they the profits and so that meant we >> uh they the profits and so that meant we were going to get half of it than we were going to get half of it than we were going to get half of it than we thought we would. So uh so the first thought we would. So uh so the first thought we would. So uh so the first step the algorithms question everything. step the algorithms question everything. step the algorithms question everything. So we we started to question our China So we we started to question our China So we we started to question our China team and said, "Is there a way that we team and said, "Is there a way that we team and said, "Is there a way that we could do this without a joint venture?" could do this without a joint venture?" could do this without a joint venture?" >> And they said, "No way. >> And they said, "No way. >> And they said, "No way. >> No way. >> No way. >> No way. >> No way. Uh this has never happened. GM >> No way. Uh this has never happened. GM >> No way. Uh this has never happened. GM doesn't have that. Proctor and Gamble doesn't have that. Proctor and Gamble doesn't have that. Proctor and Gamble doesn't have that. Coca-Cola doesn't doesn't have that. Coca-Cola doesn't doesn't have that. Coca-Cola doesn't have like no there's no way this is have like no there's no way this is have like no there's no way this is going to happen." Uh and so Elon every going to happen." Uh and so Elon every going to happen." Uh and so Elon every once in a while gets this twinkle in his once in a while gets this twinkle in his once in a while gets this twinkle in his eye and he and he and I kind of riff on eye and he and he and I kind of riff on eye and he and he and I kind of riff on stuff and I could see he's getting this stuff and I could see he's getting this stuff and I could see he's getting this twinkle in his eye. He turns to me. He's twinkle in his eye. He turns to me. He's twinkle in his eye. He turns to me. He's like, "How would you like how would you like, "How would you like how would you like, "How would you like how would you be up for or would you be up for the be up for or would you be up for the be up for or would you be up for the first joint venture in China that first joint venture in China that first joint venture in China that doesn't share any economics?" doesn't share any economics?" doesn't share any economics?" >> I said, "I don't know how to do that, >> I said, "I don't know how to do that, >> I said, "I don't know how to do that, but I'm challenge accepted." but I'm challenge accepted." but I'm challenge accepted." >> Really? >> Really? >> Really? >> So, I went to China and sat down with >> So, I went to China and sat down with >> So, I went to China and sat down with our team and said, "Explain to me the our team and said, "Explain to me the our team and said, "Explain to me the Chinese system so that I could Chinese system so that I could Chinese system so that I could understand the base assumptions." And understand the base assumptions." And understand the base assumptions." And they said, they said, they said, >> "Okay, two things. One is that in >> "Okay, two things. One is that in >> "Okay, two things. One is that in America the best students t t t t t t t America the best students t t t t t t t America the best students t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t t typically go t t t t t t t t t t t t t typically go t t t t t t t t t t t t t typically go off into business. They go to Wall off into business. They go to Wall off into business. They go to Wall Street, they go to consulting, they go Street, they go to consulting, they go Street, they go to consulting, they go to tech. Uh that's not the way it works to tech. Uh that's not the way it works to tech. Uh that's not the way it works in China. Half of the best students go in China. Half of the best students go in China. Half of the best students go into business. Half of the best students into business. Half of the best students into business. Half of the best students go into government. They're sort of go into government. They're sort of go into government. They're sort of split into two groups. And they uh as split into two groups. And they uh as split into two groups. And they uh as their new graduates of the top schools, their new graduates of the top schools, their new graduates of the top schools, they get a neighborhood they get a neighborhood they get a neighborhood >> uh and they're the party official in >> uh and they're the party official in >> uh and they're the party official in that neighborhood. And they have one that neighborhood. And they have one that neighborhood. And they have one goal. They get a base salary and they goal. They get a base salary and they goal. They get a base salary and they get a two to threex their base salary in get a two to threex their base salary in get a two to threex their base salary in bonus for job growth. It's the only bonus for job growth. It's the only bonus for job growth. It's the only metric. Grow jobs in your neighborhood, metric. Grow jobs in your neighborhood, metric. Grow jobs in your neighborhood, now you get a part of a city. now you get a part of a city. now you get a part of a city. >> Do that in a part of a city, now you >> Do that in a part of a city, now you >> Do that in a part of a city, now you become a mayor. Do that as a mayor, grow become a mayor. Do that as a mayor, grow become a mayor. Do that as a mayor, grow jobs, now you're a party official in the jobs, now you're a party official in the jobs, now you're a party official in the province. And it goes all the way up to province. And it goes all the way up to province. And it goes all the way up to the top. So they have a system of the top. So they have a system of the top. So they have a system of government government government >> where everybody is operating off the >> where everybody is operating off the >> where everybody is operating off the same metric and that is job creation. same metric and that is job creation. same metric and that is job creation. >> Okay, >> Okay, >> Okay, >> super powerful and really simple. And >> super powerful and really simple. And >> super powerful and really simple. And they said so industry and government are they said so industry and government are they said so industry and government are working hand inand all the time to working hand inand all the time to working hand inand all the time to create jobs because the way you it create jobs because the way you it create jobs because the way you it survive in a single party system is you survive in a single party system is you survive in a single party system is you got to keep everybody employed. So got to keep everybody employed. So got to keep everybody employed. So that's why this is important. that's why this is important. that's why this is important. >> So that they said that's thing one is >> So that they said that's thing one is >> So that they said that's thing one is creating jobs is a big deal. I said okay creating jobs is a big deal. I said okay creating jobs is a big deal. I said okay good check the box. We're going to good check the box. We're going to good check the box. We're going to create a lot of jobs. create a lot of jobs. create a lot of jobs. >> Second thing they said you need to >> Second thing they said you need to >> Second thing they said you need to understand is every year they produce a understand is every year they produce a understand is every year they produce a five-year economic plan of industries five-year economic plan of industries five-year economic plan of industries they want to enter and eventually they want to enter and eventually they want to enter and eventually dominate. M dominate. M dominate. M >> and this was 2015 and they just >> and this was 2015 and they just >> and this was 2015 and they just published their five-year plan. published their five-year plan. published their five-year plan. >> Okay. >> Okay. >> Okay. >> I said, "What's what's in the five-year >> I said, "What's what's in the five-year >> I said, "What's what's in the five-year plan?" They said, "Five things." I said, plan?" They said, "Five things." I said, plan?" They said, "Five things." I said, "Okay, what are they?" They said, "Okay, what are they?" They said, "Okay, what are they?" They said, "Electric cars, batteries." "Electric cars, batteries." "Electric cars, batteries." >> Wow. >> Wow. >> Wow. >> Async chips, autonomous software. And >> Async chips, autonomous software. And >> Async chips, autonomous software. And I'm like, "Okay, we have we got like I'm like, "Okay, we have we got like I'm like, "Okay, we have we got like four of the five. We are in a strong four of the five. We are in a strong four of the five. We are in a strong negotiating position here because every negotiating position here because every negotiating position here because every party official wants us because we can party official wants us because we can party official wants us because we can help them check their boxes." help them check their boxes." help them check their boxes." >> So, we negotiated hard for a year. kept >> So, we negotiated hard for a year. kept >> So, we negotiated hard for a year. kept saying in these negotiations, we want a saying in these negotiations, we want a saying in these negotiations, we want a JV with no economic sharing. JV with no economic sharing. JV with no economic sharing. >> Yeah. >> Yeah. >> Yeah. >> And eventually we got it. >> And eventually we got it. >> And eventually we got it. >> That's unreal. >> That's unreal. >> That's unreal. >> Because we questioned that first >> Because we questioned that first >> Because we questioned that first assumption, but then you got to like assumption, but then you got to like assumption, but then you got to like learn what's the what's the what's the learn what's the what's the what's the learn what's the what's the what's the chess board look like and how can you chess board look like and how can you chess board look like and how can you maneuver through this to get to your maneuver through this to get to your maneuver through this to get to your goal? It's not just you will something goal? It's not just you will something goal? It's not just you will something into into existence. You got like figure into into existence. You got like figure into into existence. You got like figure it out. Do you think that was easier it out. Do you think that was easier it out. Do you think that was easier because you were a essentially a startup because you were a essentially a startup because you were a essentially a startup company as opposed to implementing this company as opposed to implementing this company as opposed to implementing this algorithm into General Motors or GE or algorithm into General Motors or GE or algorithm into General Motors or GE or someone listening to this who's they've someone listening to this who's they've someone listening to this who's they've they've owned 25 dry cleaners in their they've owned 25 dry cleaners in their they've owned 25 dry cleaners in their family for 40 years, right? And now I family for 40 years, right? And now I family for 40 years, right? And now I don't even know that they know what don't even know that they know what don't even know that they know what their legacy thinking has become, right? their legacy thinking has become, right? their legacy thinking has become, right? Like how do you Like how do you Like how do you >> how do you step back and say question >> how do you step back and say question >> how do you step back and say question everything? What are the things you everything? What are the things you everything? What are the things you should question? That was kind of the should question? That was kind of the should question? That was kind of the thing for me reading the book like in thing for me reading the book like in thing for me reading the book like in some of the businesses I own like well some of the businesses I own like well some of the businesses I own like well we've just always done it that way. we've just always done it that way. we've just always done it that way. >> Uhhuh. >> Uhhuh. >> Uhhuh. >> You know everything is we've just always >> You know everything is we've just always >> You know everything is we've just always done it that way and it seems to work done it that way and it seems to work done it that way and it seems to work pretty well or I always want to wonder pretty well or I always want to wonder pretty well or I always want to wonder are we are we winning in spite of the are we are we winning in spite of the are we are we winning in spite of the fact that we've always done it this way fact that we've always done it this way fact that we've always done it this way or because we've always done it this or because we've always done it this or because we've always done it this way. way. way. >> I I it can be both but I think it is to >> I I it can be both but I think it is to >> I I it can be both but I think it is to your point it's easier to do it in a your point it's easier to do it in a your point it's easier to do it in a startup than it is in a 150 year old startup than it is in a 150 year old startup than it is in a 150 year old company like GM. company like GM. company like GM. >> But uh but GM has done this uh as >> But uh but GM has done this uh as >> But uh but GM has done this uh as they've introduced their latest models. they've introduced their latest models. they've introduced their latest models. It used to take them two to three years It used to take them two to three years It used to take them two to three years to develop a car from idea to coming off to develop a car from idea to coming off to develop a car from idea to coming off the line. the line. the line. >> And so they decided to hand a young >> And so they decided to hand a young >> And so they decided to hand a young engineer named Josh Tavvel, 37 years engineer named Josh Tavvel, 37 years engineer named Josh Tavvel, 37 years old, uh their first Hummer EV project. old, uh their first Hummer EV project. old, uh their first Hummer EV project. So this was going to be their Halo car So this was going to be their Halo car So this was going to be their Halo car that they're bringing to the market, has that they're bringing to the market, has that they're bringing to the market, has every feature imaginable. every feature imaginable. every feature imaginable. >> And uh and Josh had this goal, I'm going >> And uh and Josh had this goal, I'm going >> And uh and Josh had this goal, I'm going to take a 36-month process and make it to take a 36-month process and make it to take a 36-month process and make it an 18-month process. an 18-month process. an 18-month process. And to do that, the president and CEO of And to do that, the president and CEO of And to do that, the president and CEO of the company said, "What do you need?" the company said, "What do you need?" the company said, "What do you need?" And he said, 'I need you to suspend the And he said, 'I need you to suspend the And he said, 'I need you to suspend the rules. rules. rules. >> Because there are a bunch of like way >> Because there are a bunch of like way >> Because there are a bunch of like way we've always done it things around here we've always done it things around here we've always done it things around here >> that aren't productive at all. >> that aren't productive at all. >> that aren't productive at all. >> And uh and so he was able and his team >> And uh and so he was able and his team >> And uh and so he was able and his team were able to suspend the rules and put a were able to suspend the rules and put a were able to suspend the rules and put a team of ninjas together that actually team of ninjas together that actually team of ninjas together that actually delivered the car in 14 months. delivered the car in 14 months. delivered the car in 14 months. >> That's crazy. >> That's crazy. >> That's crazy. >> And it's it's so it can be done in a 150 >> And it's it's so it can be done in a 150 >> And it's it's so it can be done in a 150 year old company, too. year old company, too. year old company, too. >> It can be done. Yeah. Speaking of >> It can be done. Yeah. Speaking of >> It can be done. Yeah. Speaking of putting a car together, you know, I read putting a car together, you know, I read putting a car together, you know, I read the book based on these questions, the book based on these questions, the book based on these questions, right? So, I just I poured into this right? So, I just I poured into this right? So, I just I poured into this thing. thing. thing. >> Can you tell them about the casting >> Can you tell them about the casting >> Can you tell them about the casting example in the book? Because to me, this example in the book? Because to me, this example in the book? Because to me, this was a pivotal thing in the development was a pivotal thing in the development was a pivotal thing in the development of the company. Totally. of the company. Totally. of the company. Totally. >> And there's one way to do it and then >> And there's one way to do it and then >> And there's one way to do it and then maybe there isn't anymore. Right. This maybe there isn't anymore. Right. This maybe there isn't anymore. Right. This is a this is a pivot point almost in the is a this is a pivot point almost in the is a this is a pivot point almost in the company's history. So, many of you have company's history. So, many of you have company's history. So, many of you have asked how to see me speak live and for asked how to see me speak live and for asked how to see me speak live and for the first time ever, you can come see me the first time ever, you can come see me the first time ever, you can come see me speak live in person. All of my speeches speak live in person. All of my speeches speak live in person. 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I hope to see you there. there. there. >> So Elon, his method of leadership is to >> So Elon, his method of leadership is to >> So Elon, his method of leadership is to set crazy goals and then have people set crazy goals and then have people set crazy goals and then have people around him that will accept the around him that will accept the around him that will accept the challenge of the crazy goal and try to challenge of the crazy goal and try to challenge of the crazy goal and try to figure it out. So we were we're in a figure it out. So we were we're in a figure it out. So we were we're in a management team meeting one day and he management team meeting one day and he management team meeting one day and he said, "Guys, like to compete with the said, "Guys, like to compete with the said, "Guys, like to compete with the Chinese," this was after we'd started Chinese," this was after we'd started Chinese," this was after we'd started our Chinese factory and we could see how our Chinese factory and we could see how our Chinese factory and we could see how efficient the Chinese auto industry was. efficient the Chinese auto industry was. efficient the Chinese auto industry was. He's like, "To compete with the Chinese, He's like, "To compete with the Chinese, He's like, "To compete with the Chinese, we we had to take like 50% of the costs we we had to take like 50% of the costs we we had to take like 50% of the costs out." out." out." And so he turns to me and uh and uh Doug And so he turns to me and uh and uh Doug And so he turns to me and uh and uh Doug Field who was the head of engineering at Field who was the head of engineering at Field who was the head of engineering at the time. Now Doug runs EVs at Ford. Uh the time. Now Doug runs EVs at Ford. Uh the time. Now Doug runs EVs at Ford. Uh he turns to us and says, "Guys, can you he turns to us and says, "Guys, can you he turns to us and says, "Guys, can you figure out a way to take 50% of the cost figure out a way to take 50% of the cost figure out a way to take 50% of the cost out?" out?" out?" >> So Doug and I go for a walk. >> So Doug and I go for a walk. >> So Doug and I go for a walk. >> And we go for a walk in the factory. And >> And we go for a walk in the factory. And >> And we go for a walk in the factory. And the factory is about 2 kilometers long. the factory is about 2 kilometers long. the factory is about 2 kilometers long. So it's 1.3 miles, basically 1.2 miles. So it's 1.3 miles, basically 1.2 miles. So it's 1.3 miles, basically 1.2 miles. >> And a car factory is kind of divided >> And a car factory is kind of divided >> And a car factory is kind of divided into two. First half of the factory is a into two. First half of the factory is a into two. First half of the factory is a bunch of robots putting the skeleton of bunch of robots putting the skeleton of bunch of robots putting the skeleton of the car together. And the second half the car together. And the second half the car together. And the second half half of the factory is people hanging half of the factory is people hanging half of the factory is people hanging parts on that skeleton. parts on that skeleton. parts on that skeleton. >> And in the first half it looks like an >> And in the first half it looks like an >> And in the first half it looks like an orchestration of hundreds of robots orchestration of hundreds of robots orchestration of hundreds of robots because it is. And there are hundreds of because it is. And there are hundreds of because it is. And there are hundreds of parts that are getting welded together parts that are getting welded together parts that are getting welded together to create the skeleton of the car. And to create the skeleton of the car. And to create the skeleton of the car. And Doug and I are in the middle of the Doug and I are in the middle of the Doug and I are in the middle of the factory between the two halves and we're factory between the two halves and we're factory between the two halves and we're looking at this at end of the factory looking at this at end of the factory looking at this at end of the factory that's all robots and uh and building that's all robots and uh and building that's all robots and uh and building the skeleton. the skeleton. the skeleton. And Doug says, "I think I have an idea And Doug says, "I think I have an idea And Doug says, "I think I have an idea to get rid of 50% of this." to get rid of 50% of this." to get rid of 50% of this." And I said, 'What is it?' He said, 'I And I said, 'What is it?' He said, 'I And I said, 'What is it?' He said, 'I got to go home and do some studying and got to go home and do some studying and got to go home and do some studying and reading about it, but I think I have an reading about it, but I think I have an reading about it, but I think I have an idea. See you tomorrow morning. idea. See you tomorrow morning. idea. See you tomorrow morning. So we he comes in the next day and he's So we he comes in the next day and he's So we he comes in the next day and he's he says, "Here's the idea." And he rolls he says, "Here's the idea." And he rolls he says, "Here's the idea." And he rolls a Matchbox car across the table at me. a Matchbox car across the table at me. a Matchbox car across the table at me. I'm like, "Doug, what's this toy car? I'm like, "Doug, what's this toy car? I'm like, "Doug, what's this toy car? It's as big as my thumb." It's as big as my thumb." It's as big as my thumb." >> He said, "Yeah, this thing isn't welded. >> He said, "Yeah, this thing isn't welded. >> He said, "Yeah, this thing isn't welded. It's casted." It's casted." It's casted." >> Yeah. >> Yeah. >> Yeah. >> Meaning they pour metal into a mold to >> Meaning they pour metal into a mold to >> Meaning they pour metal into a mold to create the the car. And I said, 'Well, create the the car. And I said, 'Well, create the the car. And I said, 'Well, Doug, the reason they can do that is Doug, the reason they can do that is Doug, the reason they can do that is because the pressure you have to have to because the pressure you have to have to because the pressure you have to have to keep uh molten metal in place is super keep uh molten metal in place is super keep uh molten metal in place is super duper high. You can do that for duper high. You can do that for duper high. You can do that for something as big as your thumb scale. something as big as your thumb scale. something as big as your thumb scale. >> You can't do that as uh on car parts. >> You can't do that as uh on car parts. >> You can't do that as uh on car parts. They're too big. Like, you blow this They're too big. Like, you blow this They're too big. Like, you blow this factory up literally trying to factory up literally trying to factory up literally trying to pressurize that molten metal. pressurize that molten metal. pressurize that molten metal. >> He's like, I think we could figure this >> He's like, I think we could figure this >> He's like, I think we could figure this out. Are you willing to go on like an out. Are you willing to go on like an out. Are you willing to go on like an exploratory journey with me to figure exploratory journey with me to figure exploratory journey with me to figure this out? I'm like, 100%. this out? I'm like, 100%. this out? I'm like, 100%. >> What do you want to do? He said, "Do you >> What do you want to do? He said, "Do you >> What do you want to do? He said, "Do you have anything in the factory uh that is have anything in the factory uh that is have anything in the factory uh that is excess aluminum that we could melt?" excess aluminum that we could melt?" excess aluminum that we could melt?" Right? Right? Right? >> And I said, "Yeah, we've got a bunch of >> And I said, "Yeah, we've got a bunch of >> And I said, "Yeah, we've got a bunch of like scratch and dent wheels that we like scratch and dent wheels that we like scratch and dent wheels that we pull off cars cuz they're scratched and pull off cars cuz they're scratched and pull off cars cuz they're scratched and dented and we put them out back and a dented and we put them out back and a dented and we put them out back and a recycler comes by every week and picks recycler comes by every week and picks recycler comes by every week and picks them up." He's like, "Awesome. Tell the them up." He's like, "Awesome. Tell the them up." He's like, "Awesome. Tell the recycler not to pick them up anymore. recycler not to pick them up anymore. recycler not to pick them up anymore. I'm going to put like a uh smelter back I'm going to put like a uh smelter back I'm going to put like a uh smelter back there and with a few engineers, we're there and with a few engineers, we're there and with a few engineers, we're going to start dumping these wheels into going to start dumping these wheels into going to start dumping these wheels into the smelter and we're going to melt the smelter and we're going to melt the smelter and we're going to melt metal and we're going to put them into metal and we're going to put them into metal and we're going to put them into molds." And so we literally start to do molds." And so we literally start to do molds." And so we literally start to do that like we're literally chucking that like we're literally chucking that like we're literally chucking wheels into this smelter. It's melting wheels into this smelter. It's melting wheels into this smelter. It's melting the aluminum and then we're pouring it the aluminum and then we're pouring it the aluminum and then we're pouring it into a mold as big as our hand and into a mold as big as our hand and into a mold as big as our hand and pressurizing it and getting that to pressurizing it and getting that to pressurizing it and getting that to work. And then we're pouring it into work. And then we're pouring it into work. And then we're pouring it into something that's maybe a couple of feet something that's maybe a couple of feet something that's maybe a couple of feet wide. And we go step by step by step wide. And we go step by step by step wide. And we go step by step by step until we get to the point where we've until we get to the point where we've until we get to the point where we've got a machine that's super powerful and got a machine that's super powerful and got a machine that's super powerful and sophisticated that can take half of the sophisticated that can take half of the sophisticated that can take half of the car's skeleton and mold it. car's skeleton and mold it. car's skeleton and mold it. >> Unreal. >> Unreal. >> Unreal. >> And this is called castings. And so if >> And this is called castings. And so if >> And this is called castings. And so if you were in the Fremont, California you were in the Fremont, California you were in the Fremont, California factory, you'd see that half the place factory, you'd see that half the place factory, you'd see that half the place is robots and it's uh it's building is robots and it's uh it's building is robots and it's uh it's building these skeletons. If you go to the Austin these skeletons. If you go to the Austin these skeletons. If you go to the Austin factory where they're building the Model factory where they're building the Model factory where they're building the Model Y, uh there is no half of that factory. Y, uh there is no half of that factory. Y, uh there is no half of that factory. Factories half the size because they're Factories half the size because they're Factories half the size because they're just building castings and all you do is just building castings and all you do is just building castings and all you do is stick these two things together. Unreal. stick these two things together. Unreal. stick these two things together. Unreal. And you got a car. And you got a car. And you got a car. >> Unreal. >> Unreal. >> Unreal. >> And so we figured this out and it meant >> And so we figured this out and it meant >> And so we figured this out and it meant it meant that cars were a lot easier to it meant that cars were a lot easier to it meant that cars were a lot easier to manufacture. One of the toughest things manufacture. One of the toughest things manufacture. One of the toughest things in car manufacturing is get everything in car manufacturing is get everything in car manufacturing is get everything to align. Sure. to align. Sure. to align. Sure. >> And that's because when you have a >> And that's because when you have a >> And that's because when you have a skeleton that's got several hundred skeleton that's got several hundred skeleton that's got several hundred parts, it's really hard to do that. But parts, it's really hard to do that. But parts, it's really hard to do that. But when you've got a when you've got a when you've got a when you've got a when you've got a when you've got a skeleton has two parts, super duper easy skeleton has two parts, super duper easy skeleton has two parts, super duper easy to do that. So it made the manufacturing to do that. So it made the manufacturing to do that. So it made the manufacturing quality go up and there are all these quality go up and there are all these quality go up and there are all these benefits from that. But like it's eight benefits from that. But like it's eight benefits from that. But like it's eight years later now. We invented this eight years later now. We invented this eight years later now. We invented this eight years ago. The car industry is trying to years ago. The car industry is trying to years ago. The car industry is trying to do this. And you cannot buy a casting do this. And you cannot buy a casting do this. And you cannot buy a casting machine anywhere now because Toyota's machine anywhere now because Toyota's machine anywhere now because Toyota's trying to figure this out. Ford's trying trying to figure this out. Ford's trying trying to figure this out. Ford's trying to figure this out. GM's trying to to figure this out. GM's trying to to figure this out. GM's trying to figure this out. Castings are the thing. figure this out. Castings are the thing. figure this out. Castings are the thing. But it came But it came But it came >> Why can't you buy the machine? because >> Why can't you buy the machine? because >> Why can't you buy the machine? because there's such demand and there's so few there's such demand and there's so few there's such demand and there's so few of them. Okay. Yeah. Because car of them. Okay. Yeah. Because car of them. Okay. Yeah. Because car companies now are like gosh these guys companies now are like gosh these guys companies now are like gosh these guys really totally have changed the really totally have changed the really totally have changed the industry. industry. industry. >> Isn't it unbelievable when you're >> Isn't it unbelievable when you're >> Isn't it unbelievable when you're listening this everybody that a company listening this everybody that a company listening this everybody that a company like Tesla like a pivot point like that. like Tesla like a pivot point like that. like Tesla like a pivot point like that. I I got an idea. Let me think about it I I got an idea. Let me think about it I I got an idea. Let me think about it overnight. He rolls a little matchbox overnight. He rolls a little matchbox overnight. He rolls a little matchbox car at you and that completely car at you and that completely car at you and that completely transformed the ability to build these transformed the ability to build these transformed the ability to build these cars at scale and with the efficiencies cars at scale and with the efficiencies cars at scale and with the efficiencies in them. in them. in them. >> Totally. Doug Doug's like one of the >> Totally. Doug Doug's like one of the >> Totally. Doug Doug's like one of the things I loved about being on these things I loved about being on these things I loved about being on these teams is like people were like pretty teams is like people were like pretty teams is like people were like pretty analytical but really creative too. And analytical but really creative too. And analytical but really creative too. And Doug's one of those. He's absolutely a Doug's one of those. He's absolutely a Doug's one of those. He's absolutely a creative genius. And so for him to come creative genius. And so for him to come creative genius. And so for him to come up with that, he completely changed an up with that, he completely changed an up with that, he completely changed an industry with that one thing. But it industry with that one thing. But it industry with that one thing. But it also came from a leader saying, "I'm not also came from a leader saying, "I'm not also came from a leader saying, "I'm not setting a goal for 10% or 5% or 20%. I setting a goal for 10% or 5% or 20%. I setting a goal for 10% or 5% or 20%. I want you guys to whack 50% of the cost want you guys to whack 50% of the cost want you guys to whack 50% of the cost out of this thing." out of this thing." out of this thing." >> Yeah. Yeah. It's amazing that I We'll >> Yeah. Yeah. It's amazing that I We'll >> Yeah. Yeah. It's amazing that I We'll get to that in a second, but what's get to that in a second, but what's get to that in a second, but what's amazing to me is all of these companies amazing to me is all of these companies amazing to me is all of these companies essentially had legacy thinking the essentially had legacy thinking the essentially had legacy thinking the entire time. All of them had the means, entire time. All of them had the means, entire time. All of them had the means, the capital, the engineers, all sitting the capital, the engineers, all sitting the capital, the engineers, all sitting there that could have done what you guys there that could have done what you guys there that could have done what you guys ended up doing. Yeah. But because they ended up doing. Yeah. But because they ended up doing. Yeah. But because they don't question everything, because don't question everything, because don't question everything, because they're not thinking about efficiency, they're not thinking about efficiency, they're not thinking about efficiency, because they're not running the because they're not running the because they're not running the algorithm. That's what I mean by the algorithm. That's what I mean by the algorithm. That's what I mean by the blind spot in your business, everybody, blind spot in your business, everybody, blind spot in your business, everybody, that you even if you're a real estate that you even if you're a real estate that you even if you're a real estate agent, it's just every what is it that agent, it's just every what is it that agent, it's just every what is it that everybody's always done that doesn't everybody's always done that doesn't everybody's always done that doesn't need to be done anymore? need to be done anymore? need to be done anymore? >> Totally. >> Totally. >> Totally. >> It's so it's it's mind-blowing to me. >> It's so it's it's mind-blowing to me. >> It's so it's it's mind-blowing to me. The other part I want to ask you. So he The other part I want to ask you. So he The other part I want to ask you. So he throws this thing out 50% let's cut the throws this thing out 50% let's cut the throws this thing out 50% let's cut the cost. cost. cost. It first off he set a tone I assume in It first off he set a tone I assume in It first off he set a tone I assume in the company where bad ideas were okay as the company where bad ideas were okay as the company where bad ideas were okay as well. well. well. >> Yeah. Yeah. >> Yeah. Yeah. >> Yeah. Yeah. >> And that's something in most companies >> And that's something in most companies >> And that's something in most companies too. People are afraid to kind of too. People are afraid to kind of too. People are afraid to kind of because if you just kind of fall in because if you just kind of fall in because if you just kind of fall in line, you're probably going to get a line, you're probably going to get a line, you're probably going to get a paycheck that month. I assume one of the paycheck that month. I assume one of the paycheck that month. I assume one of the good things I'm sure there are other good things I'm sure there are other good things I'm sure there are other things that weren't good but one of the things that weren't good but one of the things that weren't good but one of the things about working with him is he things about working with him is he things about working with him is he fostered an environment. Is it fair to fostered an environment. Is it fair to fostered an environment. Is it fair to say where ideas were welcomed that say where ideas were welcomed that say where ideas were welcomed that questioned tradition? questioned tradition? questioned tradition? >> Totally. Like we would fail constantly. >> Totally. Like we would fail constantly. >> Totally. Like we would fail constantly. And if you look at his other business, And if you look at his other business, And if you look at his other business, SpaceX, SpaceX, SpaceX, >> I don't know, I mean, dozens of rockets >> I don't know, I mean, dozens of rockets >> I don't know, I mean, dozens of rockets they sent up into the sky that exploded, they sent up into the sky that exploded, they sent up into the sky that exploded, right? right? right? >> Like the total mission fails. >> Like the total mission fails. >> Like the total mission fails. >> And there's hundreds of millions of >> And there's hundreds of millions of >> And there's hundreds of millions of dollars blowing up in the sky literally. dollars blowing up in the sky literally. dollars blowing up in the sky literally. >> And it wasn't like people got fired. It >> And it wasn't like people got fired. It >> And it wasn't like people got fired. It was what can we learn from that? Because was what can we learn from that? Because was what can we learn from that? Because we knew we were on this learning cycle we knew we were on this learning cycle we knew we were on this learning cycle and humans aren't perfect. this side of and humans aren't perfect. this side of and humans aren't perfect. this side of heaven, you're gonna screw up. So, uh we heaven, you're gonna screw up. So, uh we heaven, you're gonna screw up. So, uh we we wanted to learn from the uh from the we wanted to learn from the uh from the we wanted to learn from the uh from the failures and we kind of had this mantra failures and we kind of had this mantra failures and we kind of had this mantra which is uh which is learn from the which is uh which is learn from the which is uh which is learn from the failure, don't repeat it. failure, don't repeat it. failure, don't repeat it. >> Uh and if people were repeating >> Uh and if people were repeating >> Uh and if people were repeating failures, that's a problem. failures, that's a problem. failures, that's a problem. >> Um but if they're learning from it and >> Um but if they're learning from it and >> Um but if they're learning from it and incrementally getting better, that's incrementally getting better, that's incrementally getting better, that's what we wanted because the goals were so what we wanted because the goals were so what we wanted because the goals were so high that we knew you couldn't achieve high that we knew you couldn't achieve high that we knew you couldn't achieve them on the first whack. them on the first whack. them on the first whack. >> Was it an environment there? You said in >> Was it an environment there? You said in >> Was it an environment there? You said in the book that he has blind spots as well the book that he has blind spots as well the book that he has blind spots as well and this interview is not we all do. Was and this interview is not we all do. Was and this interview is not we all do. Was it hard? I don't mean that. I I have it hard? I don't mean that. I I have it hard? I don't mean that. I I have friends that are pretty close. So, did friends that are pretty close. So, did friends that are pretty close. So, did you sometimes feel like you were the you sometimes feel like you were the you sometimes feel like you were the adult in the room? adult in the room? adult in the room? >> I was trying to be the steady hand in >> I was trying to be the steady hand in >> I was trying to be the steady hand in the room for sure. the room for sure. the room for sure. >> That's like what I >> That's like what I >> That's like what I >> Yeah. Yeah. Just and and oftentimes take >> Yeah. Yeah. Just and and oftentimes take >> Yeah. Yeah. Just and and oftentimes take the other side of the argument like if the other side of the argument like if the other side of the argument like if >> if he wanted to produce a car, which he >> if he wanted to produce a car, which he >> if he wanted to produce a car, which he did when we when we launched the Model 3 did when we when we launched the Model 3 did when we when we launched the Model 3 in 2018, he was he wanted to take the in 2018, he was he wanted to take the in 2018, he was he wanted to take the steering wheel and the pedals out steering wheel and the pedals out steering wheel and the pedals out because he thought we were that close to because he thought we were that close to because he thought we were that close to autonomy. And so I had to pull him aside autonomy. And so I had to pull him aside autonomy. And so I had to pull him aside and say, "Let me take the other side of and say, "Let me take the other side of and say, "Let me take the other side of this argument. this argument. this argument. If we don't get autonomy done now, we If we don't get autonomy done now, we If we don't get autonomy done now, we got a bunch of cars without steering got a bunch of cars without steering got a bunch of cars without steering wheels and pedals and we're going to wheels and pedals and we're going to wheels and pedals and we're going to cause our own extinction event." Whoa. cause our own extinction event." Whoa. cause our own extinction event." Whoa. Do you want to be the source of the Do you want to be the source of the Do you want to be the source of the extinction event? extinction event? extinction event? >> He's like, "No, I don't." I said, "Yeah, >> He's like, "No, I don't." I said, "Yeah, >> He's like, "No, I don't." I said, "Yeah, I don't either. So, how about we hold I don't either. So, how about we hold I don't either. So, how about we hold off on this? Because even if we do get off on this? Because even if we do get off on this? Because even if we do get autonomy, I'm not sure the government's autonomy, I'm not sure the government's autonomy, I'm not sure the government's ready to put cars on the road, but ready to put cars on the road, but ready to put cars on the road, but that's So, I said, there's two strikes that's So, I said, there's two strikes that's So, I said, there's two strikes against us. I don't want to cause the against us. I don't want to cause the against us. I don't want to cause the extinction event here. I know you don't extinction event here. I know you don't extinction event here. I know you don't either. And he would come back and say, either. And he would come back and say, either. And he would come back and say, "Thank God we had that discussion." "Thank God we had that discussion." "Thank God we had that discussion." >> Okay. >> Okay. >> Okay. >> Yeah. >> Yeah. >> Yeah. >> You one personal thing you share in the >> You one personal thing you share in the >> You one personal thing you share in the book and then we'll get back to the book and then we'll get back to the book and then we'll get back to the business stuff, but I've met you. You business stuff, but I've met you. You business stuff, but I've met you. You mean you've you walk in a room, you mean you've you walk in a room, you mean you've you walk in a room, you know, you acknowledge everybody. You got know, you acknowledge everybody. You got know, you acknowledge everybody. You got tremendous people skills. You got great tremendous people skills. You got great tremendous people skills. You got great energy. But it sounds to me as if over energy. But it sounds to me as if over energy. But it sounds to me as if over time there, at least your wife says to time there, at least your wife says to time there, at least your wife says to you at some point, you you're losing who you at some point, you you're losing who you at some point, you you're losing who you are. I'm misquing her here. you can you are. I'm misquing her here. you can you are. I'm misquing her here. you can you can clean it up for me, but I don't you can clean it up for me, but I don't you can clean it up for me, but I don't recognize this guy or I'm losing you. recognize this guy or I'm losing you. recognize this guy or I'm losing you. >> Yeah. >> Yeah. >> Yeah. >> What the downside of working with >> What the downside of working with >> What the downside of working with someone who, you know, Alon's had mental someone who, you know, Alon's had mental someone who, you know, Alon's had mental health issues that he's been very honest health issues that he's been very honest health issues that he's been very honest about. The downside of working in an about. The downside of working in an about. The downside of working in an environment like that long term is is environment like that long term is is environment like that long term is is what and what did it do to you? Why did what and what did it do to you? Why did what and what did it do to you? Why did you ultimately decide this is the end of you ultimately decide this is the end of you ultimately decide this is the end of the road for me? the road for me? the road for me? >> I I found myself and Walter Isacson >> I I found myself and Walter Isacson >> I I found myself and Walter Isacson writes about this in his book. Uh Walter writes about this in his book. Uh Walter writes about this in his book. Uh Walter was writing his book on Elon and he was writing his book on Elon and he was writing his book on Elon and he called me and said, "Hey, I want to talk called me and said, "Hey, I want to talk called me and said, "Hey, I want to talk to you about me uh Elon's mental health to you about me uh Elon's mental health to you about me uh Elon's mental health challenges." challenges." challenges." >> And I said, "I'm not sure I want to talk >> And I said, "I'm not sure I want to talk >> And I said, "I'm not sure I want to talk about those." about those." about those." >> Uh he said, "Well, Elon actually gave me >> Uh he said, "Well, Elon actually gave me >> Uh he said, "Well, Elon actually gave me your number." He wants you to talk about your number." He wants you to talk about your number." He wants you to talk about those because he wants people to know those because he wants people to know those because he wants people to know that if they're struggling, that if they're struggling, that if they're struggling, >> uh there's there are other people that >> uh there's there are other people that >> uh there's there are other people that are struggling, too. And he's one of are struggling, too. And he's one of are struggling, too. And he's one of them, and you can be successful even if them, and you can be successful even if them, and you can be successful even if you have mental health issues. But I you have mental health issues. But I you have mental health issues. But I said, "Walter, like this stuff is so said, "Walter, like this stuff is so said, "Walter, like this stuff is so personal. can you just why don't you personal. can you just why don't you personal. can you just why don't you give me a few hours. I'm going to call give me a few hours. I'm going to call give me a few hours. I'm going to call Elon and make sure he's okay with this. Elon and make sure he's okay with this. Elon and make sure he's okay with this. >> So, I called Elon. I said, "Look, he >> So, I called Elon. I said, "Look, he >> So, I called Elon. I said, "Look, he wants to talk about this. Are you okay wants to talk about this. Are you okay wants to talk about this. Are you okay with me going there?" And he said, with me going there?" And he said, with me going there?" And he said, "Yeah, "Yeah, "Yeah, >> because I want I want people to know if >> because I want I want people to know if >> because I want I want people to know if they suffer from bipolar that that they they suffer from bipolar that that they they suffer from bipolar that that they can get through this, too, and have a can get through this, too, and have a can get through this, too, and have a successful life." successful life." successful life." >> So, I got back together with with >> So, I got back together with with >> So, I got back together with with Walter. Walter said, "Tell me about the Walter. Walter said, "Tell me about the Walter. Walter said, "Tell me about the implications of dealing with somebody implications of dealing with somebody implications of dealing with somebody with bipolar." And I said, "Well, the with bipolar." And I said, "Well, the with bipolar." And I said, "Well, the implication for me was, I'm pretty good implication for me was, I'm pretty good implication for me was, I'm pretty good at running businesses, but I have no at running businesses, but I have no at running businesses, but I have no skill set in helping somebody through uh skill set in helping somebody through uh skill set in helping somebody through uh severe depression and bipolar." And I severe depression and bipolar." And I severe depression and bipolar." And I found myself dealing with that more and found myself dealing with that more and found myself dealing with that more and more. more. more. >> And I was trying as best as I could to >> And I was trying as best as I could to >> And I was trying as best as I could to help him, but I didn't have the skill help him, but I didn't have the skill help him, but I didn't have the skill set. set. set. >> And eventually my wife saw the symptom >> And eventually my wife saw the symptom >> And eventually my wife saw the symptom of that, which was she said, "You are of that, which was she said, "You are of that, which was she said, "You are stressed out and upset all the time." stressed out and upset all the time." stressed out and upset all the time." And I didn't recognize that, but she was And I didn't recognize that, but she was And I didn't recognize that, but she was she had enough perspective to recognize she had enough perspective to recognize she had enough perspective to recognize it. She said, 'Why do you think that is? it. She said, 'Why do you think that is? it. She said, 'Why do you think that is? And I said, 'I think I know why it is. And I said, 'I think I know why it is. And I said, 'I think I know why it is. >> I'm trying to solve a problem for which >> I'm trying to solve a problem for which >> I'm trying to solve a problem for which I have zero skills. I have zero skills. I have zero skills. >> This is like me getting thrown into a >> This is like me getting thrown into a >> This is like me getting thrown into a major league baseball game and I'm on major league baseball game and I'm on major league baseball game and I'm on the mound and I have no idea how to the mound and I have no idea how to the mound and I have no idea how to throw a ball 90 miles an hour, much much throw a ball 90 miles an hour, much much throw a ball 90 miles an hour, much much less make a move. less make a move. less make a move. >> And I said, I feel like I'm failing at >> And I said, I feel like I'm failing at >> And I said, I feel like I'm failing at this. And she said, you need to you need this. And she said, you need to you need this. And she said, you need to you need to decide whether this is the role for to decide whether this is the role for to decide whether this is the role for you. So, I I actually went and sat down you. So, I I actually went and sat down you. So, I I actually went and sat down with Elon and said, "I love you and I with Elon and said, "I love you and I with Elon and said, "I love you and I love this job, but this job has become love this job, but this job has become love this job, but this job has become more about helping you with your mental more about helping you with your mental more about helping you with your mental health issues than it is running Tesla health issues than it is running Tesla health issues than it is running Tesla and I I'm not equipped." and I I'm not equipped." and I I'm not equipped." >> Wow. >> Wow. >> Wow. >> Yeah. >> Yeah. >> Yeah. >> That had to be one of the hardest >> That had to be one of the hardest >> That had to be one of the hardest decisions you decisions you decisions you >> Totally hard. >> Totally hard. >> Totally hard. >> Yeah. >> Yeah. >> Yeah. >> Totally hard. >> Totally hard. >> Totally hard. >> Yeah. >> Yeah. >> Yeah. >> You What is it like? What's the other >> You What is it like? What's the other >> You What is it like? What's the other side of it? Sell us the dream or the side of it? Sell us the dream or the side of it? Sell us the dream or the nightmare. I was I've had friends of nightmare. I was I've had friends of nightmare. I was I've had friends of mine that I've asked I've had I've been mine that I've asked I've had I've been mine that I've asked I've had I've been fortunate that I've been involved fortunate that I've been involved fortunate that I've been involved compared to you. It's ridiculous. But compared to you. It's ridiculous. But compared to you. It's ridiculous. But I've had some small exits and some I've had some small exits and some I've had some small exits and some success in my life and success in my life and success in my life and >> and um but I've had other friends where >> and um but I've had other friends where >> and um but I've had other friends where we've gathered and talked about that we've gathered and talked about that we've gathered and talked about that journey and had people ask us, you know, journey and had people ask us, you know, journey and had people ask us, you know, if you had to do it all over again. I if you had to do it all over again. I if you had to do it all over again. I think the guy who was running Nvidia think the guy who was running Nvidia think the guy who was running Nvidia said this or something. If you had to do said this or something. If you had to do said this or something. If you had to do it all over again, what advice would you it all over again, what advice would you it all over again, what advice would you give to me? And he says, I I probably give to me? And he says, I I probably give to me? And he says, I I probably wouldn't do it all over again. And I'm wouldn't do it all over again. And I'm wouldn't do it all over again. And I'm wondering what is it like? take us into wondering what is it like? take us into wondering what is it like? take us into what's it like emotionally, physically, what's it like emotionally, physically, what's it like emotionally, physically, the good and the bad of being the good and the bad of being the good and the bad of being watching the dream happen for a company watching the dream happen for a company watching the dream happen for a company coming in when it's an idea, right? coming in when it's an idea, right? coming in when it's an idea, right? >> And then taking it to a place that's >> And then taking it to a place that's >> And then taking it to a place that's inc. What is that like? Like all these inc. What is that like? Like all these inc. What is that like? Like all these entrepreneurs have a dream. You've been entrepreneurs have a dream. You've been entrepreneurs have a dream. You've been involved with Lyft. You've been involved involved with Lyft. You've been involved involved with Lyft. You've been involved with Lululemon still. You've been with Lululemon still. You've been with Lululemon still. You've been involved with Tesla. I mean, involved with Tesla. I mean, involved with Tesla. I mean, >> yeah, >> yeah, >> yeah, >> your resume is bananas, right? But even >> your resume is bananas, right? But even >> your resume is bananas, right? But even in the Tesla case, what is this process in the Tesla case, what is this process in the Tesla case, what is this process like in your life when you go through it like in your life when you go through it like in your life when you go through it and you see it happen? and you see it happen? and you see it happen? >> I think maybe the core skill >> I think maybe the core skill >> I think maybe the core skill entrepreneurs have is problem solving. entrepreneurs have is problem solving. entrepreneurs have is problem solving. >> And problem solving, you get to like use >> And problem solving, you get to like use >> And problem solving, you get to like use the right side of your brain, left side the right side of your brain, left side the right side of your brain, left side of your brain. Left side of your brain of your brain. Left side of your brain of your brain. Left side of your brain is like you're analyzing the problem. is like you're analyzing the problem. is like you're analyzing the problem. Right side of your brain is you're Right side of your brain is you're Right side of your brain is you're you're creating solutions you're creating solutions you're creating solutions >> and you become this like ninja problem >> and you become this like ninja problem >> and you become this like ninja problem solver solver solver >> and out of those solutions then stuff >> and out of those solutions then stuff >> and out of those solutions then stuff gets created. And so the that for me was gets created. And so the that for me was gets created. And so the that for me was the satisfying part was the satisfying part was the satisfying part was >> we're sol we're knocking down these >> we're sol we're knocking down these >> we're sol we're knocking down these problems and now we've got the ability problems and now we've got the ability problems and now we've got the ability to build a car for half the cost and if to build a car for half the cost and if to build a car for half the cost and if we can do that a lot more people are we can do that a lot more people are we can do that a lot more people are going to be able to afford to buy the going to be able to afford to buy the going to be able to afford to buy the car. car. car. >> So now this dream is starting to become >> So now this dream is starting to become >> So now this dream is starting to become a reality. a reality. a reality. >> The second piece of the satisfaction for >> The second piece of the satisfaction for >> The second piece of the satisfaction for me though was teaching people how to do me though was teaching people how to do me though was teaching people how to do this this this >> and then watching them do it >> and then watching them do it >> and then watching them do it >> and then seeing that they had they were >> and then seeing that they had they were >> and then seeing that they had they were able to do much more than they thought able to do much more than they thought able to do much more than they thought they could do. They just had never been they could do. They just had never been they could do. They just had never been in the situation where they were in the situation where they were in the situation where they were challenged and equipped with the tools challenged and equipped with the tools challenged and equipped with the tools to do it. to do it. to do it. >> You say challenged is it being pushed? >> You say challenged is it being pushed? >> You say challenged is it being pushed? >> I would say I'll give you an example. >> I would say I'll give you an example. >> I would say I'll give you an example. There's an example in the book of uh There's an example in the book of uh There's an example in the book of uh this woman Nikki and Nikki Nikki ran this woman Nikki and Nikki Nikki ran this woman Nikki and Nikki Nikki ran delivery at the factory. So people would delivery at the factory. So people would delivery at the factory. So people would fly to the factory to get their cars fly to the factory to get their cars fly to the factory to get their cars delivered right off the line which delivered right off the line which delivered right off the line which pretty cool experience and she was doing pretty cool experience and she was doing pretty cool experience and she was doing this uh couple dozen times a day uh and this uh couple dozen times a day uh and this uh couple dozen times a day uh and had a team doing it and then at the end had a team doing it and then at the end had a team doing it and then at the end of the quarter hundreds of cars would of the quarter hundreds of cars would of the quarter hundreds of cars would come off the line and they do it several come off the line and they do it several come off the line and they do it several hundred times a day and I watched how hundred times a day and I watched how hundred times a day and I watched how effective a leader she was and we had effective a leader she was and we had effective a leader she was and we had this challenge worldwide where we didn't this challenge worldwide where we didn't this challenge worldwide where we didn't know how to deliver these cars very well know how to deliver these cars very well know how to deliver these cars very well and efficiently. And so I gave Nikki a and efficiently. And so I gave Nikki a and efficiently. And so I gave Nikki a battlefield promotion. I said Nikki battlefield promotion. I said Nikki battlefield promotion. I said Nikki you're going to be charge of this you're going to be charge of this you're going to be charge of this globally. globally. globally. And she looked at me for a second and And she looked at me for a second and And she looked at me for a second and and looked like she had a look of terror and looked like she had a look of terror and looked like she had a look of terror on her face. She's like, "I'm not sure." on her face. She's like, "I'm not sure." on her face. She's like, "I'm not sure." And I said, "No, I I think you can do And I said, "No, I I think you can do And I said, "No, I I think you can do this. We're going to help you." Like, this. We're going to help you." Like, this. We're going to help you." Like, "We're going to surround you. We're "We're going to surround you. We're "We're going to surround you. We're going to teach you teach you how to do going to teach you teach you how to do going to teach you teach you how to do these things, teach you the algorithm these things, teach you the algorithm these things, teach you the algorithm and the tools." And about six months and the tools." And about six months and the tools." And about six months later, she had mastered that. later, she had mastered that. later, she had mastered that. >> Then we had a problem in the factory >> Then we had a problem in the factory >> Then we had a problem in the factory that was so vexing that even Elon and I that was so vexing that even Elon and I that was so vexing that even Elon and I and everybody else that was wrestling and everybody else that was wrestling and everybody else that was wrestling with, we couldn't fix it. with, we couldn't fix it. with, we couldn't fix it. >> So I said, "Nikki, you're going to get >> So I said, "Nikki, you're going to get >> So I said, "Nikki, you're going to get now your second Battlefield promotion. now your second Battlefield promotion. now your second Battlefield promotion. You're coming to the factory with me. You're coming to the factory with me. You're coming to the factory with me. we're moving our desk down there. We're we're moving our desk down there. We're we're moving our desk down there. We're going to solve this together, but you're going to solve this together, but you're going to solve this together, but you're going to lead it. And so that is not going to lead it. And so that is not going to lead it. And so that is not necessarily a push. It's more of a pull. necessarily a push. It's more of a pull. necessarily a push. It's more of a pull. It's pulling somebody onto the playing It's pulling somebody onto the playing It's pulling somebody onto the playing field and saying, "I believe in you. field and saying, "I believe in you. field and saying, "I believe in you. >> I'm right behind you. Uh, I'm going to >> I'm right behind you. Uh, I'm going to >> I'm right behind you. Uh, I'm going to support you, but you can do this." support you, but you can do this." support you, but you can do this." >> Uh, and she proved time and time again >> Uh, and she proved time and time again >> Uh, and she proved time and time again that she could step up and do that. that she could step up and do that. that she could step up and do that. >> It's interesting you >> It's interesting you >> It's interesting you I came here today wanting to learn I came here today wanting to learn I came here today wanting to learn myself, you know, about challenge my own myself, you know, about challenge my own myself, you know, about challenge my own thinking. And if you would have asked me thinking. And if you would have asked me thinking. And if you would have asked me one of the great qualities of an one of the great qualities of an one of the great qualities of an entrepreneur, the first thing I would entrepreneur, the first thing I would entrepreneur, the first thing I would have said would be like vision. have said would be like vision. have said would be like vision. >> Yeah. >> Yeah. >> Yeah. >> The ability to stretch. But you said >> The ability to stretch. But you said >> The ability to stretch. But you said solving problems. That's the first thing solving problems. That's the first thing solving problems. That's the first thing that came to your mind. Do you think that came to your mind. Do you think that came to your mind. Do you think that that's the difference between a that that's the difference between a that that's the difference between a president and a founder or do you think president and a founder or do you think president and a founder or do you think that that's just that that's just that that's just >> why was that your answer do you think? >> why was that your answer do you think? >> why was that your answer do you think? Because that was clearly your first Because that was clearly your first Because that was clearly your first answer. answer. answer. >> Well, I we for a living now I start >> Well, I we for a living now I start >> Well, I we for a living now I start companies. And so before I met Elon, I companies. And so before I met Elon, I companies. And so before I met Elon, I had six companies, not in uh not same had six companies, not in uh not same had six companies, not in uh not same time, but uh six companies kind of in a time, but uh six companies kind of in a time, but uh six companies kind of in a row where we uh wrote the business plan row where we uh wrote the business plan row where we uh wrote the business plan on my uh kitchen table, scaled the on my uh kitchen table, scaled the on my uh kitchen table, scaled the company, sold it to a public company, company, sold it to a public company, company, sold it to a public company, did that six times in a row. did that six times in a row. did that six times in a row. >> And now I invent companies uh for a >> And now I invent companies uh for a >> And now I invent companies uh for a living. Uh I'm back to my roots. And the living. Uh I'm back to my roots. And the living. Uh I'm back to my roots. And the reason I say problem solving is because reason I say problem solving is because reason I say problem solving is because we'll typically start with a big a big we'll typically start with a big a big we'll typically start with a big a big opportunity area opportunity area opportunity area >> uh and we'll say we got to create a >> uh and we'll say we got to create a >> uh and we'll say we got to create a company in this area. We got to figure company in this area. We got to figure company in this area. We got to figure out how to do that. Yeah, we're going to out how to do that. Yeah, we're going to out how to do that. Yeah, we're going to create a vision eventually, create a vision eventually, create a vision eventually, >> but first we got to figure out how to >> but first we got to figure out how to >> but first we got to figure out how to how to really make this company come to how to really make this company come to how to really make this company come to life. life. life. >> That's interesting. >> That's interesting. >> That's interesting. >> And uh and a lot of that's problem >> And uh and a lot of that's problem >> And uh and a lot of that's problem solving at the very beginning. So I'll solving at the very beginning. So I'll solving at the very beginning. So I'll give you an example like we saw that in give you an example like we saw that in give you an example like we saw that in the uh in the cyber or or in the yeah in the uh in the cyber or or in the yeah in the uh in the cyber or or in the yeah in the cyber security market last 5 years the cyber security market last 5 years the cyber security market last 5 years been about 1,200 companies created in been about 1,200 companies created in been about 1,200 companies created in cyber security all focused on the cloud cyber security all focused on the cloud cyber security all focused on the cloud which I totally understand because it's which I totally understand because it's which I totally understand because it's easier to write software for Amazon easier to write software for Amazon easier to write software for Amazon Azure and Google than it is uh your Azure and Google than it is uh your Azure and Google than it is uh your local dentist who could have any any any local dentist who could have any any any local dentist who could have any any any form of a tech stack. And so we said how form of a tech stack. And so we said how form of a tech stack. And so we said how many how many cyber companies have been many how many cyber companies have been many how many cyber companies have been created for the local business? None. created for the local business? None. created for the local business? None. >> Isn't it interesting that most of the >> Isn't it interesting that most of the >> Isn't it interesting that most of the ransomware is happening in small and ransomware is happening in small and ransomware is happening in small and medium-sized businesses? Yeah, because medium-sized businesses? Yeah, because medium-sized businesses? Yeah, because they're totally vulnerable and they're they're totally vulnerable and they're they're totally vulnerable and they're vulnerable because their tech stacks are vulnerable because their tech stacks are vulnerable because their tech stacks are really hard to figure out. really hard to figure out. really hard to figure out. >> Uh, and so we just took this challenge >> Uh, and so we just took this challenge >> Uh, and so we just took this challenge and said, let's go create a vision. and said, let's go create a vision. and said, let's go create a vision. Here's the vision. Let's create a cyber Here's the vision. Let's create a cyber Here's the vision. Let's create a cyber company for the main street business. company for the main street business. company for the main street business. >> To do that, we have to solve a big >> To do that, we have to solve a big >> To do that, we have to solve a big technical problem, which is how do heck technical problem, which is how do heck technical problem, which is how do heck do we do this for an infinity number of do we do this for an infinity number of do we do this for an infinity number of tech stacks? tech stacks? tech stacks? >> Yeah, >> Yeah, >> Yeah, >> that's where the problem solving comes >> that's where the problem solving comes >> that's where the problem solving comes in. in. in. >> Very good. And so we spent a year >> Very good. And so we spent a year >> Very good. And so we spent a year solving that problem and then boom, solving that problem and then boom, solving that problem and then boom, we've got a company. And we looked like we've got a company. And we looked like we've got a company. And we looked like visionaries, but it was like both end. visionaries, but it was like both end. visionaries, but it was like both end. You got to have the vision and you got You got to have the vision and you got You got to have the vision and you got to like do problem solving to actually to like do problem solving to actually to like do problem solving to actually get there. get there. get there. >> It's really good. I've never heard that >> It's really good. I've never heard that >> It's really good. I've never heard that before. Everybody should rewind that before. Everybody should rewind that before. Everybody should rewind that last two minutes. That's new. That's last two minutes. That's new. That's last two minutes. That's new. That's that's different. The other thing that that's different. The other thing that that's different. The other thing that you touch on in the book in addition to you touch on in the book in addition to you touch on in the book in addition to the algorithm five steps I guess or the the algorithm five steps I guess or the the algorithm five steps I guess or the five parts of the algorithm is culture. five parts of the algorithm is culture. five parts of the algorithm is culture. Yeah. Yeah. Yeah. >> Which is a big thing. If you go to any >> Which is a big thing. If you go to any >> Which is a big thing. If you go to any if I go give a talk at you know Harvard if I go give a talk at you know Harvard if I go give a talk at you know Harvard or some business school I mean obviously or some business school I mean obviously or some business school I mean obviously culture comes up and everything but you culture comes up and everything but you culture comes up and everything but you actually break it down in like three actually break it down in like three actually break it down in like three different components as well. So just if different components as well. So just if different components as well. So just if I said to you the word culture in a I said to you the word culture in a I said to you the word culture in a company you would say what back to company you would say what back to company you would say what back to >> I would say like there's this secret >> I would say like there's this secret >> I would say like there's this secret sauce uh kind of secret ingredients to sauce uh kind of secret ingredients to sauce uh kind of secret ingredients to cultures that I that that I think are cultures that I that that I think are cultures that I that that I think are super successful and both of them are super successful and both of them are super successful and both of them are really about creating feedback loops. So really about creating feedback loops. So really about creating feedback loops. So the first is the first is the first is >> does leadership eat its own dog food >> does leadership eat its own dog food >> does leadership eat its own dog food meaning meaning meaning >> so good in the >> so good in the >> so good in the >> meaning do they use the product? Yep. >> meaning do they use the product? Yep. >> meaning do they use the product? Yep. >> And I was with a group of bank CEOs and >> And I was with a group of bank CEOs and >> And I was with a group of bank CEOs and I said, "Hey, raise your hands if you I said, "Hey, raise your hands if you I said, "Hey, raise your hands if you guys use your app, your bank's app on a guys use your app, your bank's app on a guys use your app, your bank's app on a weekly basis." weekly basis." weekly basis." >> No hands go up. >> No hands go up. >> No hands go up. >> And I said, to be honest, I wasn't >> And I said, to be honest, I wasn't >> And I said, to be honest, I wasn't surprised by this surprised by this surprised by this >> because I'm a customer of a couple of >> because I'm a customer of a couple of >> because I'm a customer of a couple of your banks your banks your banks >> and your apps suck. >> and your apps suck. >> and your apps suck. >> And if you use them, they wouldn't suck >> And if you use them, they wouldn't suck >> And if you use them, they wouldn't suck for another day because you'd be so for another day because you'd be so for another day because you'd be so embarrassed. You would you would haul embarrassed. You would you would haul embarrassed. You would you would haul yourself down to the people that were yourself down to the people that were yourself down to the people that were responsible for that app and fix it. responsible for that app and fix it. responsible for that app and fix it. >> Um, but you don't use them, so you don't >> Um, but you don't use them, so you don't >> Um, but you don't use them, so you don't know. So you don't have a feedback loop know. So you don't have a feedback loop know. So you don't have a feedback loop and the c the company doesn't have a and the c the company doesn't have a and the c the company doesn't have a feedback loop and they think if it's feedback loop and they think if it's feedback loop and they think if it's acceptable to the CEO, it's acceptable acceptable to the CEO, it's acceptable acceptable to the CEO, it's acceptable to everybody else. Very good. to everybody else. Very good. to everybody else. Very good. >> And and so I believe you got to use your >> And and so I believe you got to use your >> And and so I believe you got to use your own product. So I'm a board member at own product. So I'm a board member at own product. So I'm a board member at Lululemon. I've been in five stores the Lululemon. I've been in five stores the Lululemon. I've been in five stores the last two weeks last two weeks last two weeks >> uh because I want to shop. I secret shop >> uh because I want to shop. I secret shop >> uh because I want to shop. I secret shop and I send our head of stores notes uh and I send our head of stores notes uh and I send our head of stores notes uh on every store visit like here's what on every store visit like here's what on every store visit like here's what look here's what went great. Here's what look here's what went great. Here's what look here's what went great. Here's what didn't go great. didn't go great. didn't go great. >> And it's a feedback loop that she can >> And it's a feedback loop that she can >> And it's a feedback loop that she can get then to fix stuff. very good. get then to fix stuff. very good. get then to fix stuff. very good. >> But the message there is >> But the message there is >> But the message there is >> rather than sitting in headquarters, you >> rather than sitting in headquarters, you >> rather than sitting in headquarters, you want your leaders to be out doing that want your leaders to be out doing that want your leaders to be out doing that same thing. Uh and uh Tesla had this same thing. Uh and uh Tesla had this same thing. Uh and uh Tesla had this approach where we took a car off the approach where we took a car off the approach where we took a car off the line. If you were on a senior management line. If you were on a senior management line. If you were on a senior management team, we took a car off the line every team, we took a car off the line every team, we took a car off the line every night and we would drive it home, drive night and we would drive it home, drive night and we would drive it home, drive it back to the factory the next day and it back to the factory the next day and it back to the factory the next day and within a half an hour we'd have notes to within a half an hour we'd have notes to within a half an hour we'd have notes to the engineers. Um, and so the feedback the engineers. Um, and so the feedback the engineers. Um, and so the feedback loop of using your own product is super loop of using your own product is super loop of using your own product is super important. important. important. >> And I'm shocked most people don't do >> And I'm shocked most people don't do >> And I'm shocked most people don't do this because it's just an easy hack. this because it's just an easy hack. this because it's just an easy hack. >> Um, that's thing one. Thing two is >> Um, that's thing one. Thing two is >> Um, that's thing one. Thing two is there's a reason Elon can run so many there's a reason Elon can run so many there's a reason Elon can run so many companies. companies. companies. >> Okay. >> Okay. >> Okay. >> And that is >> And that is >> And that is >> he spent a lot of time thinking about >> he spent a lot of time thinking about >> he spent a lot of time thinking about what are the one or two and there can what are the one or two and there can what are the one or two and there can only be a handful existential issues for only be a handful existential issues for only be a handful existential issues for this company. this company. this company. And for him, he says, "I'm only working And for him, he says, "I'm only working And for him, he says, "I'm only working on those two. on those two. on those two. >> I'm gonna delegate everything else in >> I'm gonna delegate everything else in >> I'm gonna delegate everything else in the business, but those two I'm the business, but those two I'm the business, but those two I'm personally involved." personally involved." personally involved." >> And so, like in the car business right >> And so, like in the car business right >> And so, like in the car business right now, uh he's determined that there are now, uh he's determined that there are now, uh he's determined that there are two existential issues for Tesla. One is two existential issues for Tesla. One is two existential issues for Tesla. One is autonomy. If you don't have a car that's autonomy. If you don't have a car that's autonomy. If you don't have a car that's a chauffeur a chauffeur a chauffeur and uh another company gets there first, and uh another company gets there first, and uh another company gets there first, you're going to be out of business. This you're going to be out of business. This you're going to be out of business. This is like a flip phone to iPhone moment. is like a flip phone to iPhone moment. is like a flip phone to iPhone moment. >> And he really does believe this. I think >> And he really does believe this. I think >> And he really does believe this. I think that if you're a flip phone maker like that if you're a flip phone maker like that if you're a flip phone maker like Nokia, Motorola, Blackberry were when Nokia, Motorola, Blackberry were when Nokia, Motorola, Blackberry were when the iPhone came out, your market cap the iPhone came out, your market cap the iPhone came out, your market cap didn't fall by half. It went to zero. didn't fall by half. It went to zero. didn't fall by half. It went to zero. Zero. So that's existential. You've got Zero. So that's existential. You've got Zero. So that's existential. You've got to you've got to be first in that to you've got to be first in that to you've got to be first in that technology. So what that means is is technology. So what that means is is technology. So what that means is is that every week when he shows up at that every week when he shows up at that every week when he shows up at Tesla for one day, uh he's there a day a Tesla for one day, uh he's there a day a Tesla for one day, uh he's there a day a week, uh he is only talking to the teams week, uh he is only talking to the teams week, uh he is only talking to the teams that are responsible for th that issue. that are responsible for th that issue. that are responsible for th that issue. And because it happens weekly, there's And because it happens weekly, there's And because it happens weekly, there's weekly forward progress because teams weekly forward progress because teams weekly forward progress because teams when they meet with the CEO don't bring when they meet with the CEO don't bring when they meet with the CEO don't bring their B-game. Yeah. their B-game. Yeah. their B-game. Yeah. >> They bring their Agame. >> They bring their Agame. >> They bring their Agame. >> Yeah. >> Yeah. >> Yeah. >> And they come with solutions and they're >> And they come with solutions and they're >> And they come with solutions and they're moving that problem forward just moving that problem forward just moving that problem forward just incrementally, incrementally, incrementally, incrementally, incrementally, incrementally, incrementally, incrementally. incrementally, incrementally. incrementally, incrementally. >> But because the CEO is personally >> But because the CEO is personally >> But because the CEO is personally involved, he can resource those uh those involved, he can resource those uh those involved, he can resource those uh those needs uh and and really drive forward needs uh and and really drive forward needs uh and and really drive forward progress. And essentially what Tesla and progress. And essentially what Tesla and progress. And essentially what Tesla and SpaceX do then is they're creating a SpaceX do then is they're creating a SpaceX do then is they're creating a compounding advantage versus their compounding advantage versus their compounding advantage versus their competition every week. competition every week. competition every week. >> Yeah. >> Yeah. >> Yeah. >> And so if you look in space now, they've >> And so if you look in space now, they've >> And so if you look in space now, they've been landing rockets uh parts of rockets been landing rockets uh parts of rockets been landing rockets uh parts of rockets uh and reusing them for six years, seven uh and reusing them for six years, seven uh and reusing them for six years, seven years, and nobody can catch up and uh years, and nobody can catch up and uh years, and nobody can catch up and uh because they're seven years ahead. because they're seven years ahead. because they're seven years ahead. They're already on to launching their They're already on to launching their They're already on to launching their own satellites and creating Starlink, own satellites and creating Starlink, own satellites and creating Starlink, etc. while like Blue Origin's trying to etc. while like Blue Origin's trying to etc. while like Blue Origin's trying to figure out like how do we launch one figure out like how do we launch one figure out like how do we launch one rocket and catch one fus fuselage rocket and catch one fus fuselage rocket and catch one fus fuselage >> and so they've got I think their launch >> and so they've got I think their launch >> and so they've got I think their launch costs are 90% less than the rest of the costs are 90% less than the rest of the costs are 90% less than the rest of the industry so they've got 90% market share industry so they've got 90% market share industry so they've got 90% market share >> oh my gosh >> oh my gosh >> oh my gosh >> and that just keeps compounding so the >> and that just keeps compounding so the >> and that just keeps compounding so the second cultural second cultural second cultural secret ingredient is as a CEO have you secret ingredient is as a CEO have you secret ingredient is as a CEO have you figured out what the one issue is in figured out what the one issue is in figured out what the one issue is in your company that is going to drive your company that is going to drive your company that is going to drive survivability survivability survivability >> and are you working that every week >> and are you working that every week >> and are you working that every week >> so good >> so good >> so good >> and if you do you're going to start to >> and if you do you're going to start to >> and if you do you're going to start to great advantage. great advantage. great advantage. >> Do you hire for culture? In other words, >> Do you hire for culture? In other words, >> Do you hire for culture? In other words, when you're when you're hiring, do you when you're when you're hiring, do you when you're when you're hiring, do you is culture fit important to you or is culture fit important to you or is culture fit important to you or >> we kind of hire for two things? Like we >> we kind of hire for two things? Like we >> we kind of hire for two things? Like we hire for, this is going to sound crazy, hire for, this is going to sound crazy, hire for, this is going to sound crazy, this combination, but we hire for this combination, but we hire for this combination, but we hire for humility humility humility and capability. and capability. and capability. >> And believe it or not, like everything >> And believe it or not, like everything >> And believe it or not, like everything you'd you'd read about Tesla externally, you'd you'd read about Tesla externally, you'd you'd read about Tesla externally, you'd think, boy, this is big ego-driven you'd think, boy, this is big ego-driven you'd think, boy, this is big ego-driven culture. It's really a it's very a humb culture. It's really a it's very a humb culture. It's really a it's very a humb it's very humble culture in the sense it's very humble culture in the sense it's very humble culture in the sense that Elon will create these crazy goals that Elon will create these crazy goals that Elon will create these crazy goals and the response from some of the most and the response from some of the most and the response from some of the most brilliant engineers in the world will be brilliant engineers in the world will be brilliant engineers in the world will be I don't know how to do that. So it's a I don't know how to do that. So it's a I don't know how to do that. So it's a really humble thing up front like I really humble thing up front like I really humble thing up front like I don't know how to do what you're asking don't know how to do what you're asking don't know how to do what you're asking me to do me to do me to do >> but I'll figure it out or we'll figure >> but I'll figure it out or we'll figure >> but I'll figure it out or we'll figure it out. it out. it out. >> And so you want somebody who's got that >> And so you want somebody who's got that >> And so you want somebody who's got that humility but also that quiet confidence humility but also that quiet confidence humility but also that quiet confidence to say I think I can go slay this. Um to say I think I can go slay this. Um to say I think I can go slay this. Um >> I see that in you. Well, it's it's and >> I see that in you. Well, it's it's and >> I see that in you. Well, it's it's and so then they'll fit in the culture for so then they'll fit in the culture for so then they'll fit in the culture for sure if they have those two attributes. sure if they have those two attributes. sure if they have those two attributes. >> Got it. >> Got it. >> Got it. >> That's interesting because my favorite >> That's interesting because my favorite >> That's interesting because my favorite people friends I I I started to deduce people friends I I I started to deduce people friends I I I started to deduce like who do I like to be around in my like who do I like to be around in my like who do I like to be around in my life and it's life and it's life and it's >> it's people with tremendous humility but >> it's people with tremendous humility but >> it's people with tremendous humility but they nuance it because they also have a they nuance it because they also have a they nuance it because they also have a high level of self-confidence as well. high level of self-confidence as well. high level of self-confidence as well. They tow that line. These people that They tow that line. These people that They tow that line. These people that have tremendous confidence and bravado have tremendous confidence and bravado have tremendous confidence and bravado with no humility, they become with no humility, they become with no humility, they become exhausting. exhausting. exhausting. >> Yeah, they are >> Yeah, they are >> Yeah, they are >> to be around. >> to be around. >> to be around. >> They are. And then the people that don't >> They are. And then the people that don't >> They are. And then the people that don't have the confidence, have the confidence, have the confidence, >> you're dragging them through life in >> you're dragging them through life in >> you're dragging them through life in business all the time as well. So it's a business all the time as well. So it's a business all the time as well. So it's a really unique nuance. This you guys in really unique nuance. This you guys in really unique nuance. This you guys in the book this eat your own dog food part the book this eat your own dog food part the book this eat your own dog food part will stand out to you and it's will stand out to you and it's will stand out to you and it's outstanding. Tell us about what you're outstanding. Tell us about what you're outstanding. Tell us about what you're doing now. I'm just sort of interested doing now. I'm just sort of interested doing now. I'm just sort of interested like give us the name and I know it's in like give us the name and I know it's in like give us the name and I know it's in >> Yeah. So uh so we call this uh DVX >> Yeah. So uh so we call this uh DVX >> Yeah. So uh so we call this uh DVX Ventures and what we are is a group of Ventures and what we are is a group of Ventures and what we are is a group of people with an idea disease essentially people with an idea disease essentially people with an idea disease essentially for businesses for businesses for businesses >> and uh we create businesses from >> and uh we create businesses from >> and uh we create businesses from scratch. So we're kind of uh inventors scratch. So we're kind of uh inventors scratch. So we're kind of uh inventors of companies of companies of companies >> and uh we'll take these in these have to >> and uh we'll take these in these have to >> and uh we'll take these in these have to be in big uh kind of big opportunity be in big uh kind of big opportunity be in big uh kind of big opportunity areas where we feel like we're moving areas where we feel like we're moving areas where we feel like we're moving the world forward. Uh and uh we've the world forward. Uh and uh we've the world forward. Uh and uh we've created 12 companies in five years. Uh created 12 companies in five years. Uh created 12 companies in five years. Uh and uh we just have this systematic way and uh we just have this systematic way and uh we just have this systematic way of doing this where we we'll come up of doing this where we we'll come up of doing this where we we'll come up with the idea for the company. We'll with the idea for the company. We'll with the idea for the company. We'll we'll get the first product into the we'll get the first product into the we'll get the first product into the market. We'll get it to post revenue and market. We'll get it to post revenue and market. We'll get it to post revenue and then we go look for a second or third then we go look for a second or third then we go look for a second or third time entrepreneur time entrepreneur time entrepreneur >> who has had success but they don't have >> who has had success but they don't have >> who has had success but they don't have their next idea. their next idea. their next idea. >> Yeah. >> Yeah. >> Yeah. >> And then we'll bring them in uh and they >> And then we'll bring them in uh and they >> And then we'll bring them in uh and they can typically bend the curve of this can typically bend the curve of this can typically bend the curve of this business really fast. business really fast. business really fast. >> Have you had any setbacks the last 10 >> Have you had any setbacks the last 10 >> Have you had any setbacks the last 10 years? years? years? >> Oh yeah. >> Oh yeah. >> Oh yeah. >> You can you explain one describe one? >> You can you explain one describe one? >> You can you explain one describe one? >> Yeah. So, like one of the things I >> Yeah. So, like one of the things I >> Yeah. So, like one of the things I observed at in the ride share industry observed at in the ride share industry observed at in the ride share industry was they have this genius ability to be was they have this genius ability to be was they have this genius ability to be able to price a ride for what you're able to price a ride for what you're able to price a ride for what you're willing to pay for it and what they can willing to pay for it and what they can willing to pay for it and what they can deliver it for at a moment in time, in a deliver it for at a moment in time, in a deliver it for at a moment in time, in a street corner, in a weather condition, street corner, in a weather condition, street corner, in a weather condition, whatever. Super sophisticated. whatever. Super sophisticated. whatever. Super sophisticated. And so they have these pricing engines And so they have these pricing engines And so they have these pricing engines that can determine what people are that can determine what people are that can determine what people are willing to pay. willing to pay. willing to pay. And every product company I've been a And every product company I've been a And every product company I've been a part of or sat on the board of doesn't part of or sat on the board of doesn't part of or sat on the board of doesn't have that capability. So, Lululemon set have that capability. So, Lululemon set have that capability. So, Lululemon set their legging prices at $108 like 12 their legging prices at $108 like 12 their legging prices at $108 like 12 years ago and it had they don't know why years ago and it had they don't know why years ago and it had they don't know why and it hasn't changed. and it hasn't changed. and it hasn't changed. >> They don't know whether they could sell >> They don't know whether they could sell >> They don't know whether they could sell twice as many at 98 bucks or whether twice as many at 98 bucks or whether twice as many at 98 bucks or whether somebody is willing to pay 118. They somebody is willing to pay 118. They somebody is willing to pay 118. They don't know. don't know. don't know. >> And so I said, you know, we ought to >> And so I said, you know, we ought to >> And so I said, you know, we ought to take this insight from rid share and take this insight from rid share and take this insight from rid share and being able to price dynamically and being able to price dynamically and being able to price dynamically and bring this into the consumer market for bring this into the consumer market for bring this into the consumer market for products so you you could understand products so you you could understand products so you you could understand like, hey, if I lowered the price on like, hey, if I lowered the price on like, hey, if I lowered the price on this thing, could I sell more? And we'd this thing, could I sell more? And we'd this thing, could I sell more? And we'd actually done this at Tesla. We we actually done this at Tesla. We we actually done this at Tesla. We we plotted out a demand and pricing curve plotted out a demand and pricing curve plotted out a demand and pricing curve and figured out that we could drop the and figured out that we could drop the and figured out that we could drop the price on the Model S by five grand and price on the Model S by five grand and price on the Model S by five grand and sell 25% more cars, sell 25% more cars, sell 25% more cars, >> which is really great insight, an >> which is really great insight, an >> which is really great insight, an important insight to have. important insight to have. important insight to have. >> So, my idea was, hey, let's start a >> So, my idea was, hey, let's start a >> So, my idea was, hey, let's start a company to do this. company to do this. company to do this. >> Yeah, great idea. >> Yeah, great idea. >> Yeah, great idea. >> And we looked around and said, well, >> And we looked around and said, well, >> And we looked around and said, well, there's a bunch of carcasses around that there's a bunch of carcasses around that there's a bunch of carcasses around that have tried to do this. Uh, and they have tried to do this. Uh, and they have tried to do this. Uh, and they turned out to be consulting companies turned out to be consulting companies turned out to be consulting companies because they couldn't get people to buy because they couldn't get people to buy because they couldn't get people to buy software. So we brought a bunch of software. So we brought a bunch of software. So we brought a bunch of really brilliant people in, people that really brilliant people in, people that really brilliant people in, people that had worked at Boston Consulting Groups, had worked at Boston Consulting Groups, had worked at Boston Consulting Groups, pricing group, etc. And we start to pricing group, etc. And we start to pricing group, etc. And we start to build this product and we take it out to build this product and we take it out to build this product and we take it out to companies and companies like, "Yeah, we companies and companies like, "Yeah, we companies and companies like, "Yeah, we really want the product, but we want really want the product, but we want really want the product, but we want your consulting more because our your consulting more because our your consulting more because our business is so unique." And one of the business is so unique." And one of the business is so unique." And one of the diseases I think in business is people diseases I think in business is people diseases I think in business is people think their business is unique. It's think their business is unique. It's think their business is unique. It's really not, but they think it is. really not, but they think it is. really not, but they think it is. >> And at the end of the day, they thought >> And at the end of the day, they thought >> And at the end of the day, they thought it was. And we couldn't figure out how it was. And we couldn't figure out how it was. And we couldn't figure out how to create a software business out of to create a software business out of to create a software business out of this. It was going to be a consulting this. It was going to be a consulting this. It was going to be a consulting business. And consulting businesses are business. And consulting businesses are business. And consulting businesses are tough. they're low profit, etc. So, my tough. they're low profit, etc. So, my tough. they're low profit, etc. So, my team turned to me and said, "We have to team turned to me and said, "We have to team turned to me and said, "We have to kill this idea." kill this idea." kill this idea." >> And we do this a lot. Uh, and uh, and I >> And we do this a lot. Uh, and uh, and I >> And we do this a lot. Uh, and uh, and I said, "Yeah, you're right. Like, I said, "Yeah, you're right. Like, I said, "Yeah, you're right. Like, I thought this was going to be applicable, thought this was going to be applicable, thought this was going to be applicable, but I was wrong." but I was wrong." but I was wrong." >> Uh, and uh, and so we killed the idea. >> Uh, and uh, and so we killed the idea. >> Uh, and uh, and so we killed the idea. >> You'll stop throwing good money after >> You'll stop throwing good money after >> You'll stop throwing good money after bad at bad at bad at >> Exactly. Exactly. >> Exactly. Exactly. >> Exactly. Exactly. >> Do you when you look at business right >> Do you when you look at business right >> Do you when you look at business right now, so there's things Alain said that now, so there's things Alain said that now, so there's things Alain said that scare me almost about what he thinks is scare me almost about what he thinks is scare me almost about what he thinks is AI is going to do to the world. So, you AI is going to do to the world. So, you AI is going to do to the world. So, you you were there that entire time, right? you were there that entire time, right? you were there that entire time, right? And you've obviously had you've proven And you've obviously had you've proven And you've obviously had you've proven your algorithm and your success not just your algorithm and your success not just your algorithm and your success not just in one place but in multiple places. in one place but in multiple places. in one place but in multiple places. That's why it's a valid theory. When a That's why it's a valid theory. When a That's why it's a valid theory. When a when something's pressure tested when something's pressure tested when something's pressure tested multiple times, then we know it works multiple times, then we know it works multiple times, then we know it works >> in multiple contexts. Correct. Large, >> in multiple contexts. Correct. Large, >> in multiple contexts. Correct. Large, small. Yeah, small. Yeah, small. Yeah, >> you got it. That's why I I found I sound >> you got it. That's why I I found I sound >> you got it. That's why I I found I sound like the better salesman for the book like the better salesman for the book like the better salesman for the book than your even your publicist here today than your even your publicist here today than your even your publicist here today just because I believe so deeply in the just because I believe so deeply in the just because I believe so deeply in the principles in the book, principles in the book, principles in the book, >> especially now. Give us just a peak. >> especially now. Give us just a peak. >> especially now. Give us just a peak. What do you think the next five years What do you think the next five years What do you think the next five years looks like? I mean, he's actually said, looks like? I mean, he's actually said, looks like? I mean, he's actually said, I think I quote him correctly, where he I think I quote him correctly, where he I think I quote him correctly, where he says, "I I don't think we're going to says, "I I don't think we're going to says, "I I don't think we're going to have a workforce anymore. I think we're have a workforce anymore. I think we're have a workforce anymore. I think we're going to have, you know, guaranteed going to have, you know, guaranteed going to have, you know, guaranteed minimum income. Everyone's going to be minimum income. Everyone's going to be minimum income. Everyone's going to be kind of floating around and the robots kind of floating around and the robots kind of floating around and the robots are going to do everything." I'm are going to do everything." I'm are going to do everything." I'm oversimplifying, but not by a lot. What oversimplifying, but not by a lot. What oversimplifying, but not by a lot. What do you see the next five years of do you see the next five years of do you see the next five years of business in general looking like and the business in general looking like and the business in general looking like and the changes, the warnings, the sense of changes, the warnings, the sense of changes, the warnings, the sense of direction you would give someone direction you would give someone direction you would give someone listening or watching this today? listening or watching this today? listening or watching this today? >> I my reaction is a little different. I >> I my reaction is a little different. I >> I my reaction is a little different. I think I think the first part is right. I think I think the first part is right. I think I think the first part is right. I think humans are really good at seeing think humans are really good at seeing think humans are really good at seeing the first impact of technology, which is the first impact of technology, which is the first impact of technology, which is typically job destruction. We're really typically job destruction. We're really typically job destruction. We're really good at that. good at that. good at that. >> Destruction. >> Destruction. >> Destruction. >> Yeah. Yep. >> Yeah. Yep. >> Yeah. Yep. >> And we're really good at ringing our >> And we're really good at ringing our >> And we're really good at ringing our hands at that. hands at that. hands at that. >> We are not good at seeing what's on the >> We are not good at seeing what's on the >> We are not good at seeing what's on the other side, other side, other side, >> right? >> right? >> right? >> And the reason is is because we can't >> And the reason is is because we can't >> And the reason is is because we can't see what's on the other side because the see what's on the other side because the see what's on the other side because the the world hasn't existed like that the world hasn't existed like that the world hasn't existed like that before. So, I'll give you an example. I before. So, I'll give you an example. I before. So, I'll give you an example. I grew up in very rural America. I grew up grew up in very rural America. I grew up grew up in very rural America. I grew up in Nebraska. in Nebraska. in Nebraska. >> Okay? and uh and the whole country >> Okay? and uh and the whole country >> Okay? and uh and the whole country looked like the place I grew up in in looked like the place I grew up in in looked like the place I grew up in in the early 1900s. About 67% of jobs were the early 1900s. About 67% of jobs were the early 1900s. About 67% of jobs were in agriculture. in agriculture. in agriculture. And this thing came along called the And this thing came along called the And this thing came along called the tractor. tractor. tractor. And people started to ring their hands And people started to ring their hands And people started to ring their hands and said 67% of Americans are going to and said 67% of Americans are going to and said 67% of Americans are going to be out of a job. This is going to be be out of a job. This is going to be be out of a job. This is going to be terrible, not good, terrible. So the terrible, not good, terrible. So the terrible, not good, terrible. So the tractors roll out. Farming gets a whole tractors roll out. Farming gets a whole tractors roll out. Farming gets a whole lot more efficient. Uh today I think lot more efficient. Uh today I think lot more efficient. Uh today I think less than 2% of our population is in less than 2% of our population is in less than 2% of our population is in agriculture. Uh but somehow on the other agriculture. Uh but somehow on the other agriculture. Uh but somehow on the other end of that there was there was a second end of that there was there was a second end of that there was there was a second order effect that we didn't understand. order effect that we didn't understand. order effect that we didn't understand. >> And the second order effect that we >> And the second order effect that we >> And the second order effect that we didn't understand was a couple things. didn't understand was a couple things. didn't understand was a couple things. One is if if mass production of food One is if if mass production of food One is if if mass production of food exists it makes it a lot cheaper. So exists it makes it a lot cheaper. So exists it makes it a lot cheaper. So people need less income to afford food. people need less income to afford food. people need less income to afford food. And then for if they have more income And then for if they have more income And then for if they have more income they can invest in other things. The they can invest in other things. The they can invest in other things. The other thing that you could vest in was other thing that you could vest in was other thing that you could vest in was this tractor was the product of the this tractor was the product of the this tractor was the product of the beginnings of an industrial revolution beginnings of an industrial revolution beginnings of an industrial revolution >> that then created all kinds of >> that then created all kinds of >> that then created all kinds of industries, cars and trucks and trains industries, cars and trucks and trains industries, cars and trucks and trains and you go on and on to today to and you go on and on to today to and you go on and on to today to computers and pharmaceuticals. So what computers and pharmaceuticals. So what computers and pharmaceuticals. So what jobs get created? Well, car factories jobs get created? Well, car factories jobs get created? Well, car factories need people uh and uh then you got to need people uh and uh then you got to need people uh and uh then you got to build roads and so you have construction build roads and so you have construction build roads and so you have construction jobs that get created. And I watched jobs that get created. And I watched jobs that get created. And I watched this even in my own life when I was a this even in my own life when I was a this even in my own life when I was a kid in this rural place to make a kid in this rural place to make a kid in this rural place to make a long-distance call. I had to push zero long-distance call. I had to push zero long-distance call. I had to push zero on the phone and talk to a human being. on the phone and talk to a human being. on the phone and talk to a human being. And I knew her. She was in my town. She And I knew her. She was in my town. She And I knew her. She was in my town. She was an operator uh for the local phone was an operator uh for the local phone was an operator uh for the local phone company. And what she did physically was company. And what she did physically was company. And what she did physically was take my call and plug a wire into the take my call and plug a wire into the take my call and plug a wire into the national system so that that could national system so that that could national system so that that could create a link for a long distance phone create a link for a long distance phone create a link for a long distance phone call. And she did this all day long. And call. And she did this all day long. And call. And she did this all day long. And then sometime in the 70s, really bright then sometime in the 70s, really bright then sometime in the 70s, really bright engineers at Bell Labs figured out an engineers at Bell Labs figured out an engineers at Bell Labs figured out an electronic switch. electronic switch. electronic switch. >> Yeah. >> Yeah. >> Yeah. >> That could connect those two systems >> That could connect those two systems >> That could connect those two systems without a human having to connect two without a human having to connect two without a human having to connect two wires or a wire on a plug on each side. wires or a wire on a plug on each side. wires or a wire on a plug on each side. And overnight, 800,000 operators were And overnight, 800,000 operators were And overnight, 800,000 operators were out of a job. out of a job. out of a job. >> Jobs gone. >> Jobs gone. >> Jobs gone. >> So, it looked a lot like AI. Big >> So, it looked a lot like AI. Big >> So, it looked a lot like AI. Big technical revolution. All these jobs are technical revolution. All these jobs are technical revolution. All these jobs are going away. And this could be massive going away. And this could be massive going away. And this could be massive unemployment for these people. But we unemployment for these people. But we unemployment for these people. But we couldn't see what was on the other side couldn't see what was on the other side couldn't see what was on the other side of that. And some entrepreneurs once of that. And some entrepreneurs once of that. And some entrepreneurs once they discovered that you could switch they discovered that you could switch they discovered that you could switch for free said, "Oh, we we're going to for free said, "Oh, we we're going to for free said, "Oh, we we're going to make long-distance calls free. We're make long-distance calls free. We're make long-distance calls free. We're going to have this special area code. going to have this special area code. going to have this special area code. It'll be 1-800." It'll be 1-800." It'll be 1-800." >> And all of a sudden, you could dial >> And all of a sudden, you could dial >> And all of a sudden, you could dial anywhere in the country for free dialing anywhere in the country for free dialing anywhere in the country for free dialing 1800 something. 1800 something. 1800 something. That created a need for call centers. That created a need for call centers. That created a need for call centers. >> And now there are millions, not 800,000 >> And now there are millions, not 800,000 >> And now there are millions, not 800,000 people, millions of people employed in people, millions of people employed in people, millions of people employed in call centers. We couldn't see that call centers. We couldn't see that call centers. We couldn't see that >> on the on the front side. And so now we >> on the on the front side. And so now we >> on the on the front side. And so now we say, okay, AI is going to take all these say, okay, AI is going to take all these say, okay, AI is going to take all these call center jobs away because the AI call center jobs away because the AI call center jobs away because the AI does support really well and there's does support really well and there's does support really well and there's going to be massive unemployment. We're going to be massive unemployment. We're going to be massive unemployment. We're going to have universal. I'm not sure going to have universal. I'm not sure going to have universal. I'm not sure that that's the case. that that's the case. that that's the case. >> If you look historically, every major >> If you look historically, every major >> If you look historically, every major technical breakthrough has led to an technical breakthrough has led to an technical breakthrough has led to an increase in GDP for humanity. increase in GDP for humanity. increase in GDP for humanity. >> Very good. >> Very good. >> Very good. >> So like I I don't subscribe to the doom >> So like I I don't subscribe to the doom >> So like I I don't subscribe to the doom and gloom we're not going to have jobs. and gloom we're not going to have jobs. and gloom we're not going to have jobs. I just don't think that's the way the I just don't think that's the way the I just don't think that's the way the world has worked historically. And I world has worked historically. And I world has worked historically. And I could this could be the first time in could this could be the first time in could this could be the first time in history and I could be wrong, but history and I could be wrong, but history and I could be wrong, but >> I think we're going to see opportunities >> I think we're going to see opportunities >> I think we're going to see opportunities get created that we can't even imagine get created that we can't even imagine get created that we can't even imagine sitting here today. sitting here today. sitting here today. >> I'm glad to hear you feel that way. >> I'm glad to hear you feel that way. >> I'm glad to hear you feel that way. Okay, last question. It's a two-parter. Okay, last question. It's a two-parter. Okay, last question. It's a two-parter. Okay. Okay. Okay. >> By the way, I've enjoyed today so much. >> By the way, I've enjoyed today so much. >> By the way, I've enjoyed today so much. Me, too. Me, too. Me, too. >> It's we we could do six hours and it >> It's we we could do six hours and it >> It's we we could do six hours and it would fly by. would fly by. would fly by. >> Yeah. >> Yeah. >> Yeah. >> Um, a commercial for the book. Why >> Um, a commercial for the book. Why >> Um, a commercial for the book. Why should someone get the book? And then B, should someone get the book? And then B, should someone get the book? And then B, attached to it. attached to it. attached to it. >> I've always wanted to ask somebody >> I've always wanted to ask somebody >> I've always wanted to ask somebody other than my normal circle of people other than my normal circle of people other than my normal circle of people that we talk about entrepreneurial. I that we talk about entrepreneurial. I that we talk about entrepreneurial. I remember when Michael Gerber wrote the remember when Michael Gerber wrote the remember when Michael Gerber wrote the E-Myth. He called it having an E-Myth. He called it having an E-Myth. He called it having an entrepreneurial seizure. I don't know if entrepreneurial seizure. I don't know if entrepreneurial seizure. I don't know if you read the E-Myth. He talks about you read the E-Myth. He talks about you read the E-Myth. He talks about having an entrepreneurial seizure. I having an entrepreneurial seizure. I having an entrepreneurial seizure. I think that's a great book as well. think that's a great book as well. think that's a great book as well. >> I do too. >> I do too. >> I do too. >> And that's it's like the Vogue thing now >> And that's it's like the Vogue thing now >> And that's it's like the Vogue thing now on social media. Everybody wants to be on social media. Everybody wants to be on social media. Everybody wants to be an entrepreneur. I'm curious as to your an entrepreneur. I'm curious as to your an entrepreneur. I'm curious as to your thoughts. So commercial for the book thoughts. So commercial for the book thoughts. So commercial for the book slashfinish with slashfinish with slashfinish with >> who should be an entrepreneur? Do you >> who should be an entrepreneur? Do you >> who should be an entrepreneur? Do you think everybody can be? Do you think think everybody can be? Do you think think everybody can be? Do you think it's a genetic thing? Do you think it's it's a genetic thing? Do you think it's it's a genetic thing? Do you think it's a a a >> uh deal with the projection type thing? >> uh deal with the projection type thing? >> uh deal with the projection type thing? just your thoughts on who should be one just your thoughts on who should be one just your thoughts on who should be one if someone's watching or listening today if someone's watching or listening today if someone's watching or listening today and who maybe should be nothing wrong and who maybe should be nothing wrong and who maybe should be nothing wrong with being a number two and running a with being a number two and running a with being a number two and running a business of an entrepreneur. Yeah. So business of an entrepreneur. Yeah. So business of an entrepreneur. Yeah. So like the reason I wrote the book was I like the reason I wrote the book was I like the reason I wrote the book was I wanted uh first of all I wanted people wanted uh first of all I wanted people wanted uh first of all I wanted people to know how Tesla operates and this is to know how Tesla operates and this is to know how Tesla operates and this is largely how SpaceX operates too and largely how SpaceX operates too and largely how SpaceX operates too and there's this operating system we use and there's this operating system we use and there's this operating system we use and it's called the algorithm and I wanted it's called the algorithm and I wanted it's called the algorithm and I wanted to get that out there that framework out to get that out there that framework out to get that out there that framework out there there there >> so that so that we could drive more >> so that so that we could drive more >> so that so that we could drive more innovation in this country uh and uh innovation in this country uh and uh innovation in this country uh and uh that was my primary motivation. I've that was my primary motivation. I've that was my primary motivation. I've read books like Gerber's books and other read books like Gerber's books and other read books like Gerber's books and other other books where they've had a profound other books where they've had a profound other books where they've had a profound effect on me and my capabilities. And so effect on me and my capabilities. And so effect on me and my capabilities. And so I wanted to get this out there in in the I wanted to get this out there in in the I wanted to get this out there in in the chance that that has that impact on chance that that has that impact on chance that that has that impact on somebody. It's going to um and then uh somebody. It's going to um and then uh somebody. It's going to um and then uh should people be entrepreneurs? Like I I should people be entrepreneurs? Like I I should people be entrepreneurs? Like I I teach uh like you do in business schools teach uh like you do in business schools teach uh like you do in business schools and uh I'll have people students come up and uh I'll have people students come up and uh I'll have people students come up to me at the end of class saying I want to me at the end of class saying I want to me at the end of class saying I want to be an entrepreneur and my first to be an entrepreneur and my first to be an entrepreneur and my first response is are you sure? response is are you sure? response is are you sure? >> Like are you really sure? Do you know >> Like are you really sure? Do you know >> Like are you really sure? Do you know how hard this is? Like this is really how hard this is? Like this is really how hard this is? Like this is really hard. Uh, and it's really enjoyable if hard. Uh, and it's really enjoyable if hard. Uh, and it's really enjoyable if you're if you're wired for it, but it's you're if you're wired for it, but it's you're if you're wired for it, but it's super duper hard. And I think, uh, when super duper hard. And I think, uh, when super duper hard. And I think, uh, when I was starting my career, there was I was starting my career, there was I was starting my career, there was there was a guy that I was working for there was a guy that I was working for there was a guy that I was working for who spotted in me that I was an who spotted in me that I was an who spotted in me that I was an entrepreneur. And, uh, he said, "You entrepreneur. And, uh, he said, "You entrepreneur. And, uh, he said, "You ought not to stay here as an investor. ought not to stay here as an investor. ought not to stay here as an investor. You ought to go be an entrepreneur." And You ought to go be an entrepreneur." And You ought to go be an entrepreneur." And I said, "Okay, what do you see in me?" I said, "Okay, what do you see in me?" I said, "Okay, what do you see in me?" And he said, "Well, I see that you want And he said, "Well, I see that you want And he said, "Well, I see that you want to be hands-on solving problems." to be hands-on solving problems." to be hands-on solving problems." >> Solving problems. >> Solving problems. >> Solving problems. >> I see that you're a creative. you want >> I see that you're a creative. you want >> I see that you're a creative. you want to create and you can't really do any of to create and you can't really do any of to create and you can't really do any of those in the kind of job that you're in those in the kind of job that you're in those in the kind of job that you're in right now. And so those are the first right now. And so those are the first right now. And so those are the first two things I ask entrepreneurs like tell two things I ask entrepreneurs like tell two things I ask entrepreneurs like tell me me me >> tell me how >> tell me how >> tell me how >> how creative you are like when you look >> how creative you are like when you look >> how creative you are like when you look at it at it at it >> if you're looking at a situation do >> if you're looking at a situation do >> if you're looking at a situation do people often say to you wow you look at people often say to you wow you look at people often say to you wow you look at you look at that with a different angle you look at that with a different angle you look at that with a different angle than all than the rest of us are looking than all than the rest of us are looking than all than the rest of us are looking at it at it at it >> that gives you the creative insight to >> that gives you the creative insight to >> that gives you the creative insight to create something that is going to be create something that is going to be create something that is going to be meaningful important uh and so that's meaningful important uh and so that's meaningful important uh and so that's the vision piece the vision piece the vision piece >> and then essentially are you stubborn as >> and then essentially are you stubborn as >> and then essentially are you stubborn as hell yeah hell yeah hell yeah >> because you're going to hear no 500 >> because you're going to hear no 500 >> because you're going to hear no 500 times for every one. Yes. times for every one. Yes. times for every one. Yes. >> You just got to be able to ignore that. >> You just got to be able to ignore that. >> You just got to be able to ignore that. You have to have the kind of You have to have the kind of You have to have the kind of >> you have kind of like short-term memory >> you have kind of like short-term memory >> you have kind of like short-term memory and like uh misplaced confidence that and like uh misplaced confidence that and like uh misplaced confidence that you can fix that. Uh and so like if you can fix that. Uh and so like if you can fix that. Uh and so like if you're just stubborn as hell and you're you're just stubborn as hell and you're you're just stubborn as hell and you're creative, um you're going to have a creative, um you're going to have a creative, um you're going to have a pretty good pretty good pretty good >> pretty good chance of success. But if >> pretty good chance of success. But if >> pretty good chance of success. But if you're not, then this probably isn't the you're not, then this probably isn't the you're not, then this probably isn't the thing for you. thing for you. thing for you. >> So good. You said meaningful. Uh today >> So good. You said meaningful. Uh today >> So good. You said meaningful. Uh today was this was really meaningful. I done a was this was really meaningful. I done a was this was really meaningful. I done a lot of podcasts, brother. I really lot of podcasts, brother. I really lot of podcasts, brother. I really really grateful that we did this today. really grateful that we did this today. really grateful that we did this today. Same. Same. Same. >> Yeah, I'm really grateful you wrote the >> Yeah, I'm really grateful you wrote the >> Yeah, I'm really grateful you wrote the book. book. book. >> Thanks. >> Thanks. >> Thanks. >> You guys get the algorithm. You just >> You guys get the algorithm. You just >> You guys get the algorithm. You just take my word for it. Get the book. take my word for it. Get the book. take my word for it. Get the book. You're going to be glad that you did. You're going to be glad that you did. You're going to be glad that you did. It's going to help you in your business. It's going to help you in your business. It's going to help you in your business. It's going to help you execute better. It's going to help you execute better. It's going to help you execute better. It's going to give you a philosophy and It's going to give you a philosophy and It's going to give you a philosophy and a theory that he's applied in multiple a theory that he's applied in multiple a theory that he's applied in multiple businesses, but particularly Tesla, businesses, but particularly Tesla, businesses, but particularly Tesla, which has done pretty good. Three months which has done pretty good. Three months which has done pretty good. Three months operating cash. That still blows my operating cash. That still blows my operating cash. That still blows my mind. John McNeel, thank you for being mind. John McNeel, thank you for being mind. John McNeel, thank you for being here today. here today. here today. >> Thanks for having me. >> Thanks for having me. >> Thanks for having me. >> God bless you everybody. Share today's >> God bless you everybody. Share today's >> God bless you everybody. Share today's episode. Take care.