Tesla Vet on Innovation: Real Products Over Mock-Ups

GM’s Electric Vehicle Surge and the Influence of Tesla’s Practices

General Motors has experienced significant momentum in the electric vehicle market recently. Following a period focused solely on the Chevy Bolt, the introduction of a diverse range of 17 fully electric models has propelled the automaker to the number two position in U.S. sales, trailing only Tesla.

The Role of a Tesla Alumnus

This advancement wasn't achieved in isolation; it benefited from the expertise of a former Tesla executive.

Jon McNeill, a member of the GM board, previously served as president of Tesla during the pivotal development and launch of the Model 3 – a period critical to the company’s expansion. He attributes a key factor in Tesla’s success to the methodology employed by Elon Musk in product meetings.

“No Slides” – A Core Principle

“The foundational rule was the absence of presentations,” McNeill revealed during a presentation at TC All Stage in Boston earlier this month. “The focus had to remain on the tangible product itself.”

Each week, the company’s senior leadership team would convene with product leaders to assess their advancements. This practice stemmed from an interaction Musk had with Steve Jobs, as McNeill explained.

An Encounter with Steve Jobs

“There was a prevailing sentiment that proved accurate: Steve Jobs didn’t readily offer his time or patience to Elon in those early stages. Elon frequently sought advice from Steve at events and gatherings in Silicon Valley, but Steve often deliberately avoided engaging with him.”

“However, one evening, Elon managed to connect with Steve and asked, ‘If you could offer one piece of advice to me as a young entrepreneur’ – having recently concluded his work with PayPal and joined Tesla – what would it be?’ Steve responded, ‘Elon, you’ve transitioned into the hardware sector, which shares similarities with the software world. To succeed, you must prioritize one thing: a flawless product. If the product is exceptional, it will market itself.’”

The Pursuit of Product Perfection

Musk internalized this guidance, according to McNeill, and the concept of a perfect product became paramount in Tesla’s product development process.

“Our initial focus was on eliciting surprise and delight. We aimed to create something that would genuinely impress, amuse, or entertain someone.”

“A rather unconventional example of this is the ‘fart button,’” McNeill noted, referencing the software feature labeled “Emissions Testing Mode” that simulated flatulence through the vehicle’s speakers.

Minimalism and Aesthetic Design

The company also prioritized minimalism, ensuring that software functions were accessible within a maximum of two screen taps.

“The user experience needed to be intuitive and straightforward. We would then revisit the design with the lead designer, requesting that they enhance the aesthetic appeal.”

Preserving Tesla’s Culture Through Review

These meetings, centered on reviewing the actual product rather than simulations, were instrumental in maintaining Tesla’s culture as it scaled, McNeill stated. “The culture communicated when individuals consistently present their best work to the CEO weekly is palpable. Bringing anything less than your best to that CEO – particularly that CEO – risks immediate dismissal.”

“This cadence of weekly reviews fosters continuous innovation and progress.”

From Tesla to GM

McNeill departed from Tesla in early 2018 and joined the GM board in 2022.

“I am particularly proud that Mary Barra, the CEO, and Mark Reuss, the president, are conducting weekly product reviews – without the use of slides – for their 275,000-employee, $200 billion revenue company. The real product, be it hardware or software, must be present. If it’s hardware, it’s physically in the room for examination and interaction.”

“This approach is incredibly effective and has contributed to GM’s introduction of 17 EVs, now the second-highest selling EVs in the nation. Their unwavering focus on product quality, reviewed weekly, is the driving force.”