#705: Jon McNeill, former president of Tesla and COO of Lyft, starts with a simple problem: his teenage son is about to start driving, and he’s worried about texting behind the wheel. Instead of setting rules, he builds a solution. That idea becomes TruMotion, a company that uses smartphone sensors to track driving behavior. You hear how the app figures out whether someone is actually in the driver’s seat, and how that technology ends up powering programs used by major insurance companies. From there, we zoom out. McNeill walks us through the systems he uses to build and scale companies. He explains how to question assumptions, including a case where his team reduces a 12-page car loan document down to a few sentences after realizing none of it is legally required. We also talk about speed. At Tesla, he learns to make decisions quickly, even without perfect information. He describes how faster decision-making compounds advantage over time. You hear a story from his early days working with Tesla, when he visits multiple stores, signs up for test drives, and never gets a follow-up. That leads him to identify thousands of missed sales opportunities sitting in the pipeline. The fix comes from focusing on the bottleneck, not adding more leads. McNeill also shares how he approaches negotiations at scale, including working with government officials in China and learning how incentives and systems shape outcomes. Throughout the conversation, he returns to a few core ideas: simplify the problem, identify the constraint, and move quickly once you have enough information to act. McNeill’s new book is The Algorithm: The Hypergrowth Formula That Transformed Tesla, Lululemon, General Motors, and SpaceX. Timestamps: Note: Timestamps will vary on individual listening devices based on dynamic advertising segments. The provided timestamps are approximate and may be several minutes off due to changing ad lengths. (00:00) Jon McNeill, former Tesla President and former COO of Lyft (06:50) The &quot;First Principles&quot; Mindset (15:05) Managing Hyper-growth at Tesla Solving for &quot;Pain Points&quot; vs. Chasing Profit Autonomous Driving and Electric Vehicles Working with Visionary Founders Building a Culture of Innovation in any Organization Learn more about your ad choices. Visit podcastchoices.com/adchoices

What to Fix First When Everything Feels Stuck, with former Lyft COO and Tesla President Jon McNeill

Afford Anything | Make Smart Money Choices

# Full Transcript

**Podcast:** Afford Anything | Make Smart Money Choices

## Participants

- **Paula Pant** (Cumulus Podcast Network)
- **Jon McNeill** (None)

## Transcript

When Jon McNeill was in high school in Kearney, Nebraska, where he attended the local public school, he needed a way to pay for college. So he started mowing lawns and grew that business to more than 100 commercial accounts and hired multiple employees all before he graduated from high school. That's how he paid for college. He got a degree in economics from Northwestern. Fast forward many, many years, he's a dad of two.

He has a teenage son who's about to start driving, and he is terrified that his son is going to text while driving. I'll let him in a moment tell the story himself of how he solved that problem. But suffice to say, the solution came in the form of a company that he started called True Motion, which is a technology that's now used by huge insurers like State Farm, Geico, Progressive.

And frankly, if he had only done that in his entire life, if that had been his only achievement, that alone would be pretty darn impressive. We could learn about entrepreneurship from him.

But it turns out he's done a few other things as well. He started and sold six companies. He was the chief operating officer of Lyft. He was the president of Tesla and ran Tesla's global sales during its very high growth phase from 2015 to 2018. He's served on the boards of companies like CrossFit, Lululemon, and General Motors.

He was named the most admired CEO in Boston by Boston Business Journal. And he co-founded venture incubator DVX Ventures, which as of last year raised approximately $100 million in funds. What can he teach us about business and entrepreneurship? We're about to find out. Welcome to the Afford Anything podcast, the show that knows you can afford anything, not everything.

This show covers five pillars, financial psychology, increasing your income, investing, real estate, and entrepreneurship, which is the topic we will talk about today. Although more broadly, this conversation is not just for people who want to start businesses. It's for anyone who wants to improve their problem-solving skills. Because that is the skill that John has honed. He solves problems.

His new book, The Algorithm, is all about the problem-solving skill set that led to his success. And much of it comes back to simplification. So to hear him describe this process, here he is, the former president of Tesla and COO of Lyft, Jon McNeill. Hi, John. Hi. Thank you for joining us. Yeah, thanks for having me here. John, how many kids do you have? Two.

Is your son, he's the oldest? He's the oldest, yeah. When he was about to get his driver's license, you were up all night worried. Why and what did you do about it? I was worried he was going to text while driving and either kill himself or kill somebody else. And so I wanted to solve that problem. Most parents would solve that problem by lecturing the...

What to Fix First When Everything Feels Stuck, with former Lyft COO and Tesla President Jon McNeill

Transcript

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Every day you wait, your competitors are finding
edge in conversations you're not hearing.

What to Fix First When Everything Feels Stuck, with former Lyft COO and Tesla President Jon McNeill

Transcript

Built for investment professionals

Every day you wait, your competitors are findingedge in conversations you're not hearing.

Every day you wait, your competitors are finding
edge in conversations you're not hearing.