Tesla Motors Losing More Executives, Company Probably Not Doomed

Matt Posky
by Matt Posky
tesla motors losing more executives company probably not doomed

There’s something about EV manufacturers that elevates the turnover rate of high-ranking employees. It seemed like we reported on Faraday Future losing executives almost daily for two consecutive years, but Tesla now appears to have its own difficulty retaining talent. The automaker lost two of its senior financial executives this month as it prepares to report on the Model 3 sedan’s progress (or lack thereof).

Is this the beginning of the end for the EV manufacturer? Probably not. It’s easy to obsess about Tesla’s status and speculate endlessly on the health of the brand, but the company’s all-important stock price has yet to crash and Elon Musk has promised to remain at its helm for the foreseeable future. However, the firm may need to do some housekeeping to ensure it doesn’t lose the trust of its investors.

Tesla posted serious NASDAQ gains in 2017, but valuations in 2018 have so far been a series of ups and downs that’s limiting its upward momentum. While this could be attributed almost entirely to the Model 3’s lackluster production run, losing staff certainly doesn’t help.

The Detroit News reports that Susan Repo, Tesla’s corporate treasurer and vice president of finance, left the automaker to become the chief financial officer of another company. Meanwhile, Tesla recently disclosed that Chief Accounting Officer Eric Branderiz had left his post for “personal reasons.” Jon McNeill, Tesla’s president of global sales and service, also departed to become the chief operating officer of Lyft last month.

While Musk stated he will assume McNeill’s duties, the other employees will likely need replacements in the coming weeks. At the same time, the brand will continue to work toward bolstering production volume of the Model 3 sedan. Tesla has said output should reach 2,500 units per week by the end of March.

Unfortunately for Musk, CNBC cites Tesla employees who claim the company is using subpar components in order to reach that goal. One current Tesla engineer estimated that around 40 percent of the parts made or received at the company’s Fremont factory required some measure of reworking, contributing to the car’s production delays. Tesla denies these accusations, saying every car produced undergoes rigorous quality control. Expect more on that as details surface.

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  • John Horner John Horner on Mar 15, 2018

    Alpha dogs like Musk are typically horrible to work for. A-team executives tend to come and go. Eventually the Alpha ends up surrounded by B-team execs who are willing to throw out their pride for stock options and a good looking LinkedIn entry. This happens in Silicon Valley with depressing regularity.

  • Stingray65 Stingray65 on Mar 15, 2018

    Perhaps they have just gotten tired of winning.

  • SPPPP The little boosters work way better than you would expect. I am a little nervous about carrying one more lithium battery around in the car (because of fire risk). But I have used the booster more than once on trips, and it has done the job. Also, it seems to hold charge for a very long time - months at least - when you don't use it. (I guess I could start packing it for trips, but leaving it out of the car on normal days, to minimize the fire risk.)
  • Bader Hi I want the driver side lights including the bazl and signal
  • Theflyersfan One positive: doesn't appear to have a sunroof. So you won't need to keep paper towels in the car.But there's a serious question to ask this seller - he has less than 40,000 miles on some major engine work, and the transmission and clutch work and mods are less than 2 months old...why are you selling? That's some serious money in upgrades and repairs, knowing that the odds of getting it back at the time of sale is going to be close to nil. This applies to most cars and it needs to be broadcasted - these kinds of upgrades and mods are really just for the current owner. At the time of sale, a lot of buyers will hit pause or just won't pay for the work you've done. Something just doesn't sit well with me and this car. It could be a snowbelt beast and help save the manuals and all that, but a six year old VW with over 100,000 miles normally equals gremlins and electrical issues too numerous to list. Plus rust in New England. I like it, but I'd have to look for a crack pipe somewhere if the seller thinks he's selling at that price.
  • 2ACL I can't help feeling that baby is a gross misnomer for a vehicle which the owner's use necessitated a (manual!) transmission rebuild at 80,000 miles. An expensive lesson in diminishing returns I wouldn't recommend to anyone I know.
  • El scotto Rumbling through my pantry and looking for the box of sheets of aluminum foil. More alt right comments than actual comments on international trade policy. Also a great deal of ignorance about the global oil industry. I'm a geophysicist and I pay attention such things. Best of all we got to watch Tassos go FULL BOT on us.