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Elon Musk, the visionary behind Tesla and SpaceX, has a straightforward take on the purpose of a company:
"The point is that it's a group of people that have gathered together to create a product. If the product is good, the company should exist, and if it is not good, the company should not exist."
That’s a bold, no-nonsense statement. In today’s business world, it’s easy to get swept up by branding, marketing campaigns, and social media hype. Yet Musk strips all that away. He argues that a company’s survival and success boil down to a single factor—creating something truly valuable. But how does this principle play out in practice?
Photo: Paul Sancya/AP
Excellence Over Everything: The Tesla Story
“Clearly then, one should focus on making the absolute best product you can; otherwise, you reduce the probability of success,” Musk advises.
He lives this philosophy at Tesla. In the early days, Tesla didn’t have a reputation, nor could it rely on luxury branding. Instead, Musk’s goal was simple: build the best electric car ever made.
This laser focus led Tesla to pioneer innovations like high-performance batteries and over-the-air software updates. Musk demanded constant improvement and excellence at every stage. The result? Tesla didn’t just compete—it redefined what a car could be. By putting product quality above everything, Tesla forced even legacy automakers to shift their focus to electric vehicles.
The Pitfall of Distraction: Focus or Fail
“A lot of companies focus on things that aren’t really to do with the product,” Musk warns.
He’s seen too many businesses get distracted by vanity metrics or corporate fluff. Branding, marketing, and PR can support your company—but only if the product is rock-solid first.
Take Blackberry as an example. Once a market leader, they lost their edge because they leaned on their brand loyalty instead of continuously improving their devices. Meanwhile, Apple zeroed in on product excellence, turning the iPhone into a category-killer.
Musk’s point? If your company is more concerned about how it’s perceived than the quality of its product, you’re headed for trouble.
Purpose-Driven Innovation: Solving Real Problems
For Musk, a company’s purpose is inseparable from its product.
“A company has no basis for existing apart from doing useful things”
Simply put, if you’re not solving a real-world problem, your business is in danger.
Look at SpaceX. Musk didn’t create the company for prestige—he created it to solve a major issue: making space exploration more affordable. Reusable rockets weren’t just an ambitious idea—they were a necessary innovation. Musk’s obsession with solving this problem turned SpaceX into a leader in space technology, making space travel significantly more cost-effective and viable for future exploration.
Another example is Airbnb. The company didn’t just want to disrupt the hotel industry; it wanted to solve a common traveler problem: finding affordable, homely, and unique places to stay. By focusing on solving this pain point, the founders continually improved the platform, turning it into a global success.
Ignore the Noise and Trust the Product
Musk also stresses the importance of tuning out naysayers and competitors who try to chip away at your confidence.
“If the product is good, the company should exist,” he insists.
In other words, if your customers love what you’re offering, you’re on the right track—regardless of what others say.
Consider Netflix’s rise in the early 2000s. Critics mocked the idea of mailing DVDs and later scoffed at streaming. Yet Netflix stayed committed to delivering great content with an easy user experience. They listened to what customers wanted, not what industry analysts predicted. Today, they’re a household name, while many competitors who ignored their own product quality fell behind.
Building for the Future
You can’t rely on past methods or outdated advice to build something revolutionary. The only real guide you have is your product’s value and how it solves a problem today and tomorrow.
If you’re building a company, take a page from Musk’s playbook: Focus obsessively on making something remarkable. Listen to customer feedback, improve relentlessly, and block out the noise. As long as you stay product-centered, you’ll be building for lasting success.
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