SOPA Images/Getty
- Elon Musk has been urged to lay out a vision for Tesla as senior staff leave amid layoffs.
- An analyst called the departure of one executive a “gut punch” to investor confidence.
- Musk announced that “more than 10%” of the workforce would be laid off.
Elon Musk must set out a vision for Tesla after investors were spooked by high-profile departures amid layoffs, an analyst has said.
Tesla stock fell 5.6% on Monday after Elon Musk announced over the weekend that more than 10% of its workforce would be laid off.
Wedbush analyst Dan Ives said Wall Street needs to know the “rationale for the cost-cutting, the strategy going forward, product roadmap, and an overall vision from Musk” next week on Tesla’s investor conference call.
Ives singled out the “gut punch” loss of Drew Baglino, Tesla’s head of powertrain and electrical engineering, who said in an X post on Monday he’d made the “difficult decision” to leave the company after 18 years.
“He was instrumental in the Powertrain and Energy initiatives at Tesla and was viewed by many as key to the Model 2 initiative over the next few years. The pressure on the stock today is being exacerbated by the Baglino news which was very unexpected,” Ives said in a note to investors on Monday.
Rohan Patel, the public policy and business development VP, also announced his departure on Monday. He wrote a lengthy X post about his departure and thanked Musk and his former colleagues: “The past 8 years at Tesla have been filled with every emotion — but the feeling I have today is utmost gratitude.”
Anthony Thurston, a senior manager of cathode materials and manufacturing at Tesla in Texas was also laid off, Electrek first reported.
Thurston, who ran a 341-person team, wrote in a LinkedIn post: “Today marks the end of an incredible journey at Tesla. I’m grateful for all the opportunities and experiences that came my way during my time there.”
Those departing Tesla worked on critical projects
Both Baglino and Thurston worked on critical projects at the Texas factory. Electrek reported that Musk was not happy with the progress at the facility, which supplies a material called cathode used in battery cells.
Fred Lambert, editor-in-chief of Electrek, said on X that he understood that Amir Mirshahi, director of infrastructure, had also been let go.
Tesla didn’t immediately respond to a request for comment from Business Insider.
The company’s stock has declined by 35% so far this year, and the slide was exacerbated after the company reported a 20% slump in first-quarter sales earlier this month, compared with the last three months of 2023. The drop in sales comes despite significant price cuts in recent months that have eroded profits.
In the staff memo announcing layoffs, Musk said that the job cuts were to help the company become “lean, innovative, and hungry for the next growth phase.”
He also said that as Tesla grew rapidly, there had been some “duplication” of roles. Tesla had more than doubled its head count in recent years. It had 71,000 employees in 2020 and ended 2023 with 140,000, regulatory filings show.
The exits come after the chief financial officer, Zachary Kirkhorn, left last August after 13 years.
Tesla’s also suffered other recent departures due to the AI talent war. Ethan Knight, a machine learning scientist who worked on Autopilot, left to join Musk’s xAI.
In an X post earlier this month, Musk said Knight was “going to join OpenAI, so it was either xAI or them.”
If you enjoyed this story, be sure to follow Business Insider on Microsoft Start.
News Related
-
Cloud computing experts, builders, customers, partners, and technology enthusiasts descend on Las Vegas to attend AWS re:Invent event that runs through December 1. Photo: AWS Amazon Web Services, the world’s biggest cloud services provider, has expanded its partnership with technology platform Clarity AI to help investors and consumers advance sustainable ...
See Details:
AWS and Clarity AI to use generative AI to boost sustainable investments
-
Manchester City players appeal to the referee after Ruben Dias’ effort is ruled out for a foul on Alisson Former referee Dermot Gallagher dissects the flashpoints from the latest round of the 2023/24 Premier League season including Manchester City’s disallowed goal against Liverpool and Manchester United’s penalty at Everton. Man ...
See Details:
Ref Watch: 'Enough' of a foul to disallow Man City goal vs Liverpool
-
-
All-rounder Hardik Pandya has been traded to his former franchise Mumbai Indians (MI) from Gujarat Titans with Cameron Green moving from Mumbai to Royal Challengers Bangalore (RCB), the IPL said yesterday. Five-time winners Mumbai got all-rounder Pandya back on his existing player fee of $1.8mn as teams prepare their wish ...
See Details:
Pandya returns to MI, Green goes to RCB
-
KYIV, 28th November, 2023 (WAM) — A winter storm lashed central and southern Ukraine, killing at least five people in Ukraine and three in neighbouring Moldova, with snow and high winds knocking out power to hundreds of towns and villages and shutting highways, Reuters reported. At least 19 people were ...
See Details:
Snowstorm kills eight in Ukraine and Moldova, hundreds of towns lose power
-
-
Empty jars of cream cheese, bottles of juice, torn clothes and scrap wood. These are just some items that double as eye-catching decor in Dubai resident Siddiqa Akhtar’s Furjan townhouse. A veritable upcycled haven, the Pakistani homemaker’s DIY space pays homage to her zero-waste lifestyle. Her creativity is evident from ...
See Details:
Inside a Dubai home with upcycled furniture and zero waste
-
-
Henry Turner of JESS Blues. Defending school champs JESS play a practice match against Dubai Hurricanes ahead of Emirates Dubai Sevens. The Sevens, Dubai. Chris Whiteoak / The National When Jumeirah English Speaking School claimed the Gulf Under-19s title at the Dubai Sevens for the first time 12 months ago ...
See Details:
No Antoine Dupont but Dubai still set to launch new era for sevens
-
Henry Turner of JESS Blues. Defending school champs JESS play a practice match against Dubai Hurricanes ahead of Emirates Dubai Sevens. The Sevens, Dubai. Chris Whiteoak / The National When Jumeirah English Speaking School claimed the Gulf Under-19s title at the Dubai Sevens for the first time 12 months ago ...
See Details:
Why ESG investors are concerned about AI
-
Henry Turner of JESS Blues. Defending school champs JESS play a practice match against Dubai Hurricanes ahead of Emirates Dubai Sevens. The Sevens, Dubai. Chris Whiteoak / The National When Jumeirah English Speaking School claimed the Gulf Under-19s title at the Dubai Sevens for the first time 12 months ago ...
See Details:
Your campsite can harm the environment
-
Henry Turner of JESS Blues. Defending school champs JESS play a practice match against Dubai Hurricanes ahead of Emirates Dubai Sevens. The Sevens, Dubai. Chris Whiteoak / The National When Jumeirah English Speaking School claimed the Gulf Under-19s title at the Dubai Sevens for the first time 12 months ago ...
See Details:
Mubadala, Saudi Fund deals on US radar for potential China angle
-
Henry Turner of JESS Blues. Defending school champs JESS play a practice match against Dubai Hurricanes ahead of Emirates Dubai Sevens. The Sevens, Dubai. Chris Whiteoak / The National When Jumeirah English Speaking School claimed the Gulf Under-19s title at the Dubai Sevens for the first time 12 months ago ...
See Details:
Abu Dhabi T10 season seven to kick off with thrilling double-header
-
Henry Turner of JESS Blues. Defending school champs JESS play a practice match against Dubai Hurricanes ahead of Emirates Dubai Sevens. The Sevens, Dubai. Chris Whiteoak / The National When Jumeirah English Speaking School claimed the Gulf Under-19s title at the Dubai Sevens for the first time 12 months ago ...
See Details:
Eight climate fiction, or cli-fi, books to consider before Cop28
OTHER NEWS
Fantic Stealth 125 and Imola Concept The Italian manufacturer’s sporty offerings are designed to appeal to the beginner segment. The 125cc segment, pretty much non-existent in the US market, is ...
Read more »
Valencia orange image Perspective from Roseane M Silva Master in Health Sciences, Bachelor in Nutrition · 7 years of experience · Brazil Possible Side Effects People who are allergic to ...
Read more »
Leading grocery delivery company Kibsons says it is already answering the call for greener production processes as food security and sourcing enter the Cop28 spotlight later this month. The UAE ...
Read more »
AMMAN — The government on Wednesday endorsed the draft general budget law for 2024 with estimated public revenues of JD10.3 billion, marking an increase of 8.9 per cent compared with ...
Read more »
AMMAN — The new forecasted capital expenditure for the fiscal year 2024 stands at JD73.317 million, according to the 2024 public budget draft law. The government allocated JD1.729 billion as ...
Read more »
AMMAN — The post World War I period marks the beginning of scholarly research in Jordan. During the British Mandate in Jordan, the Department of Antiquities in Amman was founded ...
Read more »
The Sharjah City Municipality has issued a set of guidelines for the use of cosmetic products in hair salons and beauty centres. The authority urges salons to stick to these ...
Read more »