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Yesterday, Tesla instituted the largest job cut in the company’s history. The job cuts are unprecedented in sheer number and as a percentage of the workforce.
In previous instances, Tesla has instituted job cuts that reached as high as 10%; however, the 10% number only involved salaried employees, translating to about 3% of the total workforce.
However, yesterday’s cuts saw 10% of Tesla’s workforce losing their job, or about 15,000 employees were let go simultaneously.
Elon Musk Says “There’s Nothing More I Hate, But it Must Be Done” as He Announces a Massive 15,000 Employee Tesla Job Cut – Adds “It is Very Difficult to Say Goodbye” @Tesla @elonmusk #Tesla
-https://t.co/wRBci8pZVE
– pic.twitter.com/Z9JTSfjI7K
— Torque News (@torquenewsauto) April 15, 2024
In addition to the massive number of employees fired yesterday, Tesla has significantly shaken up the executive team.
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Two of Tesla’s top executives, Drew Bagilno, Senior Vice President of Powertrain and Energy Engineering, and Rohan Patel, Head of Public Policy and Business Development, announced their resignations yesterday.
From all available information online, the circumstances in which these top executives departed the company seem amicable, with Elon Musk wishing them the best of luck.
However, several top executives who reported directly to Drew Baglino and Elon Musk also appear to have been let go, and their departure circumstances seem less than amicable.
Most of the firings among Tesla’s high brass appear to be concentrated on the struggling in-house 4680 cell production team.
Back in 2020, Tesla laid out jaw-dropping aspirations to enter the battery cell production business with a revolutionary new cell that would increase energy density by 54%, decrease capital expenditure by 69%, lower cost per kilowatt hour to well below $100, and be a much superior battery overall to anything found on the market.
In addition to the technological and financial breakthroughs, Tesla’s new 4680 cell was supposed to be more environmentally friendly, eliminating the use of several toxic agents from the production process and significantly cut water and power consumption.
Tesla planned to scale 4680 cell production to over 100GWh by 2022 and grow that number to over 2000GWh by 2030.
Fast-forward to 2024, and Tesla’s proclaimed revolutionary 4680 cells have not only failed to scale to the numbers initially hoped but have also disappointed in critical energy density and charging speed variables.
For example, the 4680-based Tesla Model Y AWD has a heavier battery pack than equivalent Model Y variants with 2170 packs. Not only that, the now discontinued 4680 Model Y AWD has a lower peak charging speed with a subpar charging curve.
The same applies to the Tesla Cybertruck which is powered by the 4680 cells. Not only has Tesla failed to deliver the 500-mile EPA range version of the truck, but the longest-range Cybertruck variant clocks in at only 340 miles.
Given all the unachieved goals and unmet promises on the 4680 cell front, various reports have come out stating that Musk, unhappy with the performance of the battery cell production team, has decided to fire multiple high-ranking individuals in the department.
Reports state that most senior executives working under Drew Baglino, who is in charge of the in-house battery cell team, have been let go, along with the 15,000 Tesla employees who lost their jobs yesterday.
Given that the 4680 cell team has significantly underperformed the rest of Tesla’s businesses, one would assume Musk was right in firing the individuals responsible for the project.
However, those recently fired do not agree with Musk about who is to blame for the 4680 cell debacle or any ongoing issues at Tesla.
Tesla executives who spoke to the EV reporter Fred Lambert seem to put the blame back on Elon Musk.
Recounting a conversation he had with a Tesla manager who was fired yesterday, Fred writes the manager described Musk to him as a “pigeon CEO” – “He comes in, Sh*t all over us, and goes.”
A Tesla manager who was let go today described Elon Musk to me as a “pigeon CEO”.
“He comes in, shit all over us, and goes.”
— Fred Lambert (@FredericLambert) April 15, 2024
Given the lack of details, it’s impossible to say whether Tesla is right to fire the manager or if the issue lies with Musk.
A few days ago, after Tesla posted a 20% decrease in quarterly deliveries, several prominent Tesla investors blamed Elon Musk’s online antics for damaging the EV maker’s brand and resulting in the lower sales.
Musk harshly responded to these accusations, even going so far as to hurl insults at one prominent Tesla investor.
Musk is by no means a regular CEO; the serial entrepreneur spends most of his online hours sharing memes and his take on the latest political hot topic.
Given Elon’s unorthodox behavior, it is easy to side with the fired manager and blame Musk for Tesla’s shortcomings.
However, it’s good to remember Musk’s track record before doing that. During his long career, Elon has created and grown five completely desperate companies to a more than a billion-dollar valuation.
In this aspect, Musk might be the greatest entrepreneur alive. And if creating 5 billion dollar companies is not enough, Musk’s SpaceX is valued at more than $150 billion, and Tesla is worth over $500 billion.
Having said that, there are reasonable concerns that Musk might need to be more focused to run Tesla. Currently, Musk is playing a significant role in transitioning Twitter (X) from a simple social media website into the “everything app.”
Musk also has another venture, X.ai, which is trying to create artificial general intelligence. As if all this wasn’t enough, Musk is also the CEO and Chief Technology Officer at SpaceX, which is trying to develop the largest rocket in history and make humanity a multi-planetary species by settling on Mars.
Add to this Musk’s involvement in the Boring Company and Neuralink, then legitimate questions could be raised about whether Elon has enough time to work on Tesla.
Is Tesla Better Off If Elon Musk Left the Company?
This is the big question. Given his multiple engagements, the obvious answer is that Tesla would benefit greatly if Musk were replaced with a CEO who can give all his attention to the EV maker.
It Might be Wise to Stop Driving Your Tesla Cybertruck ASAP – Here is a Scary Demonstration Video Showing the Cybertruck Accelerator Pedal Issue That Can Leave Your Pedal Stuck at Full Power @Tesla @elonmusk #Tesla
-https://t.co/0T46zC3CyD
– pic.twitter.com/8503hUOFYc
— Torque News (@torquenewsauto) April 16, 2024
However, given Musk’s years of experience and unmatched track record as an entrepreneur, finding someone who can fill his shoes will be almost impossible.
So what is the solution? Ideally, for Musk’s and Tesla investors’ sake, Musk should unload some of his responsibilities at his other ventures and commit more time to Tesla.
Luckily for Tesla investors, there are signs that Musk is looking to do just that after the recent firings. Currently, the situation at Tesla doesn’t appear as smooth sailing as it was a year ago; however, we’ll be sure to keep you posted on how Musk and the Tesla team respond to the upcoming challenge.
Until then, visit our site, torquenews.com/Tesla, regularly for the latest updates.
So, what do you think? Are you surprised to see recently let-go Tesla executives disparage Elon Musk? Also, where do you place the blame for some of the challenges currently present at Tesla? Please let us know what you think in the comments below.
Image: Courtesy of Tesla, inc.
For more information, check out: Elon Musk Says “There’s Nothing More I Hate, But it Must Be Done” as He Announces a Massive 15,000 Employee Tesla Job Cut – Adds “It is Very Difficult to Say Goodbye”
Tinsae Aregay has been following Tesla and the evolution of the EV space daily for several years. He covers everything about Tesla, from the cars to Elon Musk, the energy business, and autonomy. Follow Tinsae on Twitter at @TinsaeAregay for daily Tesla news.
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Source: torquenews.com