Deepwater Asset Management’s Managing Partner Gene Munster has voiced concerns over the morale at Tesla Inc. TSLA following the departure of several senior executives. However, he is hopeful that the company will improve its revenue growth by 2025.
What Happened: On Thursday, Munster expressed his views during CNBC’s “Last Call” on the recent exodus of Tesla executives and mass layoffs which have caught the attention of investors and critics alike.
"This is a clear sign that morale is low,” he said.
However, Munster is hopeful that in a couple of months, “the people that are still there will pick up the slack and continue to march forward.”
Looking forward to the June quarterly reports, Munster feels while there might be a slight decline in revenue growth, it is expected to bounce back to over 25% in 2025.
“We are not out of the woods yet when it comes to returning to growth for Tesla,” he said.
Munster comments come in the wake of reports of multiple senior executives leaving Tesla, including the heads of its charging infrastructure and new product departments. This follows CEO Elon Musk’s push to downsize the company’s workforce.
Why It Matters: The departure of key personnel from Tesla has raised questions about the company’s future. Rebecca Tinucci, Senior Director of Charging Infrastructure, and Daniel Ho, Director of New Product Introduction, were among the first to exit. This was followed by Rich Otto, the Head of Product Launches, leaving the company.
These departures have led to concerns about the company’s leadership style, with Matt Higgins, CEO of RSE Ventures, voicing his concerns about Musk’s “cultural immaturity.”
Price Action: On Thursday, Tesla’s stock closed at $171.97, down 1.57% from the previous close, according to Benzinga Pro. The company’s first quarter earnings also fell short of estimates, with an EPS of $0.45 against an estimated $0.51.
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