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.
A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.
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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.
Perhaps they have just gotten tired of winning.