[MUSIC]
To sum up, we've had an amazing ride here at Tesla.
And I'm so excited to lead this company into the future.
With that, I'll take any questions from the audience.
Yes. >> Mr.
Musk, I am a very tiny shareholder with only [INAUDIBLE] two shares.
But as all the other investors in this room, I'm mainly interested in one thing.
You guys have not made a single penny yet.
When is this company gonna become profitable?
>> Uhh.
>> Stop.
>> [LAUGH] >> You all know what this feels like,
don't you?
And this is not where you want to be.
Today we will provide you with one of your last lessons at the GSB,
a lesson on how to answer tough business questions.
There are three types of tough business questions.
The first are those questions for which you do not have an answer.
The second are those questions for which you cannot provide an answer.
And the third are those questions for which you are guilty as charged.
We will provide you with an example of each one of these questions and
then offer some suggestions on how to best address each of those questions.
But first, I would like to offer credit to Jerry Weissman's book,
In the Line of Fire, from which we synthesized many of these suggestions.
So what does it look like when you don't know the answer to a question?
When is your Hawaii office opening?
I'm looking for a job.
>> Are you kidding me?
I'm the CEO of Tesla, for crying out loud.
I have better things to worry about.
Maybe August or December.
>> Stop. >> [LAUGH]
>> There is a much
better way to address a question for which you do not have an answer.
First, begin by rephrasing or restating the question as you best understood it.
This will do two things.
It'll ensure that the audience member feels heard, but it will also confirm for
you the question for which you must ultimately provide an answer.
Second, no audience member expects you to be a walking encyclopedia.
So if you don't know the answer, admit it.
You really have nothing to gain and have everything to lose by lying.
If you lie, you provide inaccurate information and
you risk damaging your reputation.
Finally, best practice is to actually commit to following up, and do follow up.
You can even demonstrate this intent by asking for
that audience member's business card or contact information.
So let's try that again.
When do you open your Hawaii office?
I'm looking for a job.
>> So you want to know when you might be able to apply for a job in Hawaii?
To be honest, I don't know exactly when our Hawaii office will be opening.
However, I do know that we are rapidly expanding all across the globe and
are looking for talented individuals in many locations.
I do actually have my head of HR, Leslie, here with me.
She'd be happy to meet with you after this presentation.
She'd know when the Hawaii office will be opening and
she'd be happy to answer any other questions that you might have.
>> Now, what do you do if you receive a question to which you cannot answer,
maybe because of confidentiality reasons?
Let's try this.
Mr. Musk, can you comment on your negotiations with local state
authorities in the jurisdictions where Tesla cannot currently open any stores?
Have you made any political contributions in those states maybe?
>> Of course.
We'd be silly not to.
We have a good friend, an old fraternity brother of the CFO, Jerry Arlen.
He's in Texas, and conveniently he sits on the Texas Transportation Board.
>> [LAUGH] >> Needless to say,
we think we have pretty strong negotiating leverage with the auto dealers there.
We're currently in negotiations to get full access to sell in the state of Texas,
and it should be done in a couple of weeks.
>> Wow, I'm sure Jerry Arlen will love to see this back on television tonight.
>> [LAUGH] >> First,
if your company policy states that you cannot share any information, just say so.
Everyone knows that certain information cannot be shared, and
no one will be surprised by that.
However, try to do so in a positive way, rather than saying our company
does not share this kind of information, try to say our company policy only
allows to share information that has been previously released in press releases.
Second, if you can't share certain information, give a reason for
why you can't share that information.
You can attribute this to privacy or security or data sensitivity, for example.
Third, if you have any extra relevant information to share, do so
with your audience.
And last but not least,
never ever answer this question by saying if I tell you I'll have to kill you.
So let's try that again.
Mr. Musk, can you comment on your negotiations with local state
authorities in jurisdictions where Tesla cannot open any store currently?
Did you make any political contributions in those states maybe?
>> So we want customers to be able to buy a Tesla wherever they live.
And as you allude to, unfortunately that's not today's reality.
However, we are in negotiations with several state authorities across
the United States, and we're working hard to bring Tesla customers those cars.
However, to keep open and honest negotiations,
it's our policy not to comment on ongoing discussions.
But I can assure you that we're working tirelessly to allow every customer to be
able to buy a Tesla where they live.
>> That was way better.
You're doing well, but you're not of the hook yet.
>> [LAUGH] >> I still have one more question for
you, and word of advice for you.
What should you do if the questioner has a valid point?
What if we asked something that points out one of your weaknesses?
So let's try this.
Mr. Musk, how do you expect anyone to buy a car from you if they
are expected to spend 75 minutes at a charging station?
>> Did you get this information from the University of Phoenix?
>> [LAUGH] >> Who let this bozo in here?
No, our customers have shown no reticence to buy cars
if they take a long time to charge.
We have no problems with this at all.
>> How would you feel if you were the questioner?
How would you feel if a valued concern is dismissed in this way?
I will explain to you a better way of answering, a different way of answering.
First, paraphrase the questioner and
reframe the question in a way that you show that you listened.
And you change the tone of the question to make it more positive,
to make it most promising.
Then agree with the questioner.
He has a valid point.
Show him that you're on his side.
You're not an opponent.
And then say loud and clear but, and
make a U-turn to change the tone of the answer
in a positive way, so you can present evidence
to defend your own position while still acknowledging the existence of this issue.
And finally, you have to conclude with a strong statement.
So again, Mr. Musk, I will give you a second chance.
How do you expect people to buy a car
if they are expected to spend 75 minutes at a charging station?
>> What I'm hearing from you is that you have a concern that people might not wanna
purchase a Tesla if it takes a long time to recharge.
I think that's a valid concern, and
it's something that I spend a lot of time thinking about.
Currently it takes about 40 minutes for us to give the car an 80% car.
And the 75 minutes you mentioned is for a full charge.
But we've been working really hard and
have taken several important steps to try to mitigate this issue.
Firstly, we just introduced battery swaps, where people can come into a station and
switch in a new battery in 90 seconds.
That's faster than filling up a tank of gas.
And secondly, we're constantly working to improve our battery technology.
And as we can charge the car faster, we're gonna get people out on the road faster,
and more and more people will wanna buy our amazing vehicles.
>> That was the answer I wanted to hear the first time.
>> [LAUGH] >> Congratulations.
So, let's recap.
What did we learn today?
We learned how to answer three questions.
When you don't know the answer, say so and offer follow up.
When you can't answer, just don't, but
always provide a reasonable explanation for not answering.
And when the questioner has a valid point, admit guilt.
It's fine.
It's good to connect with them.
But you have to spend enough time to defend your position and
to explain why the concern has been addressed.
We have seen him, how he evolved throughout the presentation.
He has successfully answered three questions, and
he's ready to take the fourth one from you.
>> [LAUGH]
[MUSIC]