The Algorithm

From a former President of Tesla comes The Algorithm―the first book written by any of Elon Musk’s direct reports―a transformative guide for leaders, entrepreneurs, and innovators who want to emulate the paradigm-shattering approach Musk used to launch Tesla and SpaceX to meteoric success.

Jonathan McNeill had already founded and sold six startups when Sheryl Sandberg introduced him to Elon Musk, who was looking for help at Tesla. McNeill was steeped in the lean principles that had made Toyota a global powerhouse―principles focused on achieving efficiency and optimization by incrementally improving existing systems and processes. What he learned from Elon at Tesla was its antithesis, an approach that required radical rethinking to explode the status quo, attack complexity, and set seemingly unrealistic goals.

Elon called this five-step framework “The Algorithm.”
1. Question every requirement.
2. Delete every possible step in the process.
3. Simplify and optimize.
4. Accelerate cycle time.
5. Automate.

In this book, McNeill details this tremendously powerful set of tools, which brought Tesla from a production crisis that threatened to derail it to a period of hypergrowth. During his tenure, revenue boomed from $2B to $20B in just 30 months. Since his departure from Tesla, McNeill has used The Algorithm in every enterprise he has worked with to supercharge speed, efficiency, innovation, and growth. Featuring case studies from Tesla and SpaceX, as well as from Lululemon, GM, and companies of various sizes across industries, he reveals how any business can do the same and achieve the unimaginable.

Review

Elon Musk’s five step algorithm has proven to be an amazing formula for growing Tesla, SpaceX, and now many other businesses. In this colourful and valuable book, he explains the formula in depth, with vivid holy-shit examples, and shows how you can use it in your business and life to conquer the status quo and thrive. ― Walter Isaacson

A playbook for leaders who won’t settle for “that’s how we’ve always done it,” and want to achieve exponential, not incremental, growth. It's not just theory: it's a roadmap to build successful teams, strengthen work culture, and deliver results in a changing and challenging economy. ― Sheryl Sandberg

I couldn’t put this book down. It takes Elon Musk’s algorithm concept and turns it into a powerful framework for leadership and execution. ― Kevin Taweel, Founder and Chairman of Asurion

The secret sauce is no longer secret. How did Tesla and SpaceX become the most valuable companies in the history of their industries? The former president of Tesla explains how, revealing for the first time publicly the 5-step innovation process Tesla and SpaceX leaders use every week to win. Immediate take home value. Five simple action steps every business leader can use. All told through surprising stories from startups to mega-corps, from restaurants to manufacturing to finance. I sure wish I had Jon’s book when I started our company. ― Scott Cook, Co-founder of Intuit

About the Author

Jonathan McNeill served as the president of Tesla, and the COO of Lyft and is now the cofounder and CEO of venture capital firm DVxVentures. A serial entrepreneur and business leader with a proven track record of boosting revenue and scaling companies, he currently holds positions on the board of directors of General Motors, CrossFit and Lululemon, among others. A sought-after speaker, he is a frequent contributor to CNBC and is regularly quoted in business publications such as Fortune, Semafor, and TechCrunch