Tesla In Turmoil: Musk Ousts Top Execs And Prepares For Massive Layoffs, What's Happening?

By Greg Moriarty | Wednesday, 01 May 2024 05:15 AM
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Tesla CEO Elon Musk has reportedly ousted two senior executives and is preparing to lay off hundreds of additional employees, according to an email sent to senior managers and reported by The Information.

The move comes amid declining sales and Musk's dissatisfaction with the rate of job cuts.

Rebecca Tinucci, the senior director of Tesla's Supercharger business, and Daniel Ho, the head of the new vehicles program, are set to depart the electric vehicle manufacturer. The report also indicates that Musk plans to dismiss all employees under Tinucci and Ho, including approximately 500 staff members in the Supercharger group. The exact number of employees under Ho remains unclear.

The report also revealed that Tesla's public policy team, previously led by former executive Rohan Patel, will be disbanded.

In the email, Musk reportedly wrote, "Hopefully these actions are making it clear that we need to be absolutely hard core about headcount and cost reduction." He added, "While some on exec staff are taking this seriously, most are not yet doing so."

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Tesla, which had a global workforce of 140,473 at the end of 2023, has not yet responded to a request for comment from Reuters.

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Ho, who joined Tesla in 2013, was a program manager for the development of the Model S, the 3, and the Y before overseeing all new vehicles. Tinucci joined the company in 2018 as a senior product manager, according to their LinkedIn profiles.

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Earlier this month, two other senior leaders, Patel and battery development chief Drew Baglino, announced their departures. This coincided with Tesla's decision to lay off more than 10% of its workforce.

Tesla is currently grappling with declining sales and an escalating price war, which resulted in its quarterly revenue falling for the first time since 2020, as reported last week.

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Despite these challenges, Musk made strides towards launching Tesla's advanced driver-assistance package in China, the epicenter of the EV price war, during an unexpected visit to Beijing. This visit occurred shortly after he cancelled a planned trip to India, where Tesla has been eager to establish operations, due to "very heavy Tesla obligations."

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