Tesla Faces Top Executive Exodus Amid Sales Slump and Competition
Tesla, led by Elon Musk, has witnessed a wave of departures from top executives, with leaders from key areas like powertrain and energy leaving the company. This follows a significant job cut in spring 2024, which led to the exit of many senior managers. The exodus comes as Tesla faces declining sales and increased competition in the electric car market.
Last year, several high-ranking managers from various business areas at Tesla resigned. The reasons behind their departures are varied, including extreme working hours and lack of family time, as seen in the cases of CFO Mike Liberatore and chief legal officer Robert Keele at Musk's AI startup xAI. Musk's political statements, such as his support for Donald Trump and contacts with right-wing activists, have also strained the work environment.
The halt of the affordable electric car project 'NV-91' led several long-serving leaders to move to competitors like Waymo or Uber. Industry observers see these recent developments as a test for Musk, who currently leads five major companies with a combined workforce of over 140,000 employees. Despite the challenges, Musk plans to establish a new European engineering center in Berlin, initially employing 130 people and expanding to 250, focusing on vehicle, drive, and battery technology.
The high turnover at Tesla and xAI, coupled with declining sales and growing competition, presents significant challenges for Musk and his companies. As Tesla continues to face these issues, the success of its new European engineering center will be a crucial indicator of its ability to adapt and thrive in a changing market.
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