Elon Musk runs successful companies. That doesn't mean he does it well, HR experts say.

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Elon Musk's entrepreneurial success doesn't mean he's good at running his companies, as his management style draws criticism and lawsuits.

Tesla is rehiring some of the nearly 500 Supercharger staff members Musk fired in April as a cost-saving measure amid challenging times at the EV company, Bloomberg reported earlier this month.Six months after he took over Twitter in 2022 and swiftly reduced head count by about 90%, Musk said he would try to rehire some of the people he laid off, expressing some regret over his decision.

"If you have good enough margins, if you have strong enough loyalty from your customers, then you can still have good financial results," Levenson added."But I guarantee you the results would be that much better if the management practice is improved and you can do it without hurting the bottom line."

Human resources experts said the action is not only an inefficient use of the CEO's time but also signals distrust to employees responsible for hiring personnel. A similar incident occurred at SpaceX when a group of employees were fired shortly after they sent an open letter in 2022 to the company's leadership, calling Musk's behavior"a frequent source of distraction and embarrassment for us."

 

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