Key Takeaways
- Tesla CEO Elon Musk has reporteldy retrenched senior executives, plans hundreds more cuts due to a need for hardcore cost reduction.
- Entire Supercharger team will reportedly be cut.
- This follows a 10% reduction in staff just weeks ago.
Unconfirmed reports have emerged claiming that Tesla CEO Elon Musk has laid off two senior executives and intends to further reduce the workforce by hundreds more. The Information reports (via Reuters) that the eclectic leader of Tesla recently sent an email to senior managers in which he reinforced how critical it is for the automaker to cut costs right now, and that means more layoffs are in the offing.
“Hopefully, these actions are making it clear that we need to be absolutely hardcore about headcount and cost reduction. While some [executive] staff are taking this seriously, most are not yet doing so.”
– Elon Musk, Tesla CEO (as reported by The Information).
The report claims that the two executives to be dismissed were Rebecca Tinucci and Daniel Ho. Tinucci was the Senior Director of EV Charging at Tesla and was responsible for the Supercharger network, while Ho was in charge of new vehicles. These are key roles, so this move casts doubt on Tesla’s future expansion plans for both the Supercharger network and Tesla’s product lineup.
Tesla
Tesla, Inc. is an American electric vehicle manufacturer largely attributed to driving the EV revolution. Through the Model S and subsequent products, Tesla has innovated and challenged industry conventions on numerous fronts, including over-the-air updates, self-driving technology, and automotive construction methods. Tesla is considered the world’s most valuable car brand as of 2023, and the Model Y the world’s best-selling car in the same year, but the brand’s greatest achievement is arguably the Supercharger network of EV charging stations.
- Founded
-
July 1, 2003
- Founder
-
Martin Eberhard, Marc Tarpenning
- Headquarters
-
Austin, Texas, USA
- Owned By
-
Publicly Traded
- Current CEO
-
Elon Musk
Entire Teams Reportedly Dismissed By Musk
As if the loss of two high-ranking executives was not concerning enough, the report claims that the entire teams working below Tinucci and Ho will follow their former managers out of the door. That means some 500 Supercharger employees may be about to lose their jobs, with an unknown number of employees under Ho also getting their marching orders. Moreover, Tesla’s public policy team, formerly led by Rohan Patel, will reportedly be dissolved. This comes after Musk said he was raising pay for AI technicians in an effort to prevent rivals from headhunting his best staff.
Related
Sales Of Xiaomi’s First Electric Car Are Rocketing After Undercutting Tesla By Thousands Of Dollars
The Chinese company has sold far more of the SU7 electric vehicle than predicted.
Patel left earlier this month along with development boss Drew Baglino, both around the same time that Tesla cut 10% of its workforce. At the time, Musk reportedly wanted double that percentage to be cut from Tesla’s workforce, and it seems he’s getting closer to that goal. Tesla doesn’t normally respond to requests for comment, and we doubt it’ll be hiring press officers anytime soon, but we’ve reached out anyway.
Trouble At Tesla?
Tesla posted disappointing first-quarter results this year and is facing pressure to launch new vehicles and technology. Musk claims that cheaper electric cars are still a priority for the company, but it appears that when these eventually arrive (a timeline was not specified), they may be watered-down versions of the existing Model 3 and Model Y. Instead, Tesla’s focus has shifted to a new robotaxi.
Related
Elon Musk Says Affordable Tesla EVs Are Coming Sooner Than Planned, But Potentially On Old Platforms
Tesla’s Q1 call brought promises of cheaper EVs, but probably not with the next-gen “unboxed” assembly line manufacturing process of the Robo Car.
Coupled with mounting competition from Chinese automakers, these uncertainties about Tesla’s future have seen its share price fall significantly. It rebounded somewhat on recent news suggesting that Tesla’s Full Self-Driving supervised semi-autonomous driving assistance suite could be approved for use in China, but this new round of layoffs makes it clear that Tesla is still battling operational challenges. Add in the fact that its CEO’s attention is divided across several pet projects, including his own social media platform, and one can’t help but wonder if it’s time for change or, at the least, a new approach.
