Tesla Inc. TSLA CEO Elon Musk has seen the departure of two of his top executives, including a senior vice president after the electric car maker reportedly laid off over 10% of its global workforce.
What Happened: Senior Vice President Drew Baglino, who was responsible for engineering and technology development for Tesla’s batteries, motors, and energy products, has resigned. Baglino said in a post on X, formerly Twitter, that he doesn't have any immediate plans yet.
The departure of Baglino, a veteran of 18 years, is seen as a significant loss for the company.
Another key figure, Rohan Patel, Tesla’s vice president of public policy and business development, has also reportedly left the company.
This shake-up follows CEO Elon Musk’s reported memo announcing a global headcount reduction of over 10% due to the declining prospects for electric vehicle sales.
Tesla's headcount stood at a little over 140,000, which means the EV maker is laying off over 14,000 employees.
"I made the difficult decision to move on from Tesla after 18 years yesterday. I am so thankful to have worked with and learned from the countless incredibly talented people at Tesla over the years."
He added that while he has "no concrete plans" yet, "people who know me well can attest, I have difficulty sitting still for long."
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Baglino and Patel have already lost their verified "Tesla" badges on X.
Why It Matters: The departure of these top executives comes at a time when Tesla is facing significant challenges.
The company is reportedly laying off over 14,000 employees to cut costs and eliminate duplicate roles.
This is in line with a previous report that Tesla is on the verge of implementing a massive 20% job cut due to fundamental issues and a stock slump.
These developments have had an impact on Tesla’s stock, with shares sliding in premarket trading despite a positive outlook for the broader market.
The company’s Q1 sales were also impacted by lower sales of its vehicles, except the Model Y.
Price Action: Tesla shares were down 2.88% at $166.13 at the time of reporting on Monday, according to Benzinga Pro.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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