Two more senior executives from Tesla Inc TSLA including the heads of its charging infrastructure and new product departments are reportedly leaving the EV giant as company CEO Elon Musk seeks to downsize the company’s workforce.
What Happened: Tesla Senior Director of Charging Infrastructure Rebecca Tinucci and Director of New Product Introduction Daniel Ho will leave the company as of Tuesday morning, The Information reported on Tuesday, citing a late Monday email from company CEO Elon Musk to other executives.
All employees working under Tinnucci and Ho will be dismissed or reassigned, the mail said. While about 500 people will be laid off from Tinucci’s supercharger group, the public policy team previously headed by Rohan Patel will be dissolved, the report said.
The departure of Tinucci and Ho follows the resignation of Drew Baglino and Rohan Patel. Both executives announced their departure from the company on April 15 soon after it announced a 10% layoff expected to impact about 14,000 employees. While Baglino was Senior Vice President of Powertrain and Energy Engineering at Tesla, Patel was Vice President of Public Policy and Business Development.
Layoff Criteria: Musk reportedly also wrote in the email that he would ask for the resignation of any executive who retains more than three people who don’t “obviously pass” his criteria starting Tuesday.
“Hopefully, these actions are making it clear that we need to be absolutely hardcore about headcount and cost reduction,” Musk wrote. “While some on execstaff [sic] are taking this seriously, most are not yet doing so”.
Why It Matters: Tesla’s layoffs reflect the broader challenges facing the company, including declining sales and pricing pressures. For the first quarter, the EV giant reported revenue of $21.3 billion, down from the $23.33 billion reported a year earlier. This is the first time the company's quarterly revenue has fallen since the pandemic in 2020.
Tesla’s net profit stood at $1.13 billion, falling 55% from $2.51 billion a year earlier.
Price Action: Tesla stock closed 15.3% higher on Monday at $194.05 but fell 1.63% in premarket trading, according to data from Benzinga Pro. The stock is down 21.9% year-to-date.
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