The billionaire Elon Musk has made Mark Zuckerberg and the Google guys look like dilettantes. He is the heir apparent to Steve Jobs and has ambitious plans for interplanetary travel. He started Twitter as a gag, pantsed the contract-abiding world, and now owns two profitable rocket and car companies. What is Elon Musk's secret? Let's examine his appeal to logic and pathos.
Elon Musk's appeal to logic
Elon Musk is the world's richest man. He's the founder of Tesla and SpaceX. He recently made a $44 billion offer to buy Twitter. Musk's reference to the 'town square' in his tweet refers to ancient Greece, where debates took place over 2,500 years ago. The ancient Greeks were known for using rhetorical strategies and emotional appeals to persuade audiences.
Although Musk's approach to logic is ambiguous, some previous logic has been spelled out in his tweets and "Master Plans." The future of technologies is baffling, and no one can predict everything, so investors focus on the present and future. They're also motivated by the appeal of Musk's authority and their feelings towards him. While this approach may seem counterproductive to the current economic climate, it has produced spectacular results.
His appeal to emotion (pathos)
In the last two years, Tesla CEO Elon Musk has proven his ability to mobilize a variety of resources and appeal to the emotion of his audience. He made a substantial personal investment in Twitter, which represents about 10% of his net worth. Musk's appeal to emotion has been somewhat controversial and has polarized people along ideological lines. While he has offered vague plans for the company, such as the possibility of growing the first plant on Mars on a Russian rocket, the investors still defer to his authority and his vision.
Pathos is an important technique for persuading audiences, but it must be used carefully. Overusing it can make your audience feel angry or doubtful, which could ultimately damage your message. Pathos is especially useful when speaking about sensitive topics. On the other hand, logos, or the appeal to logic, can also be effective. When used properly, it engages the audience by using clever arguments and testimonies.
His open technology strategy vs closed technology strategy
When it comes to a new product or service, it is important to choose between an open technology or a closed one. A more open strategy can increase innovation and promote new technologies, but it may not be as effective for large companies. The effectiveness of an open approach depends on the uniqueness of the product or service and the size of the industry. A closed technology strategy may be less effective in a market with hundreds of millions of consumers.
While open technology creates value-creating network effects, it also leads to a winner-take-all environment. A closed technology strategy can limit innovation and reduce shareholder value. A closed strategy can be detrimental to a company's growth, especially if it lacks a viable business model. Open technology strategies allow firms to tap into networks of investors that are willing to share their ideas.
His reliance on experience curve to deliver
One of Musk's greatest strengths is his inability to follow a standard process. For example, he has made mistakes in the past. The CEO of Tesla, for example, once said that he did not have time to "make everything work". But that didn't stop him from trying. Musk has also been inconsistent. One example of this is his Starlink satellite internet company, which is still falling short of its 2015 goals. In March 2022, it had only 0.625 percent of its subscriber goal and failed to reach 1% of its revenue target. Musk's inconsistent behavior hasn't been a problem for Tesla or SpaceX; markets have given him a lot of leeway to survive. Most managers would fail if they missed projections.