Tesla’s Elon Musk, known for his different business inventions, is also known for his lofty predictions. Tesla that is constantly scrambling for cash and not reported profit to date has managed to survive so far on the strength of Musk. But the hope of profitability looks bleak as the company continues to lose its top talent. This promoted Musk to implement a major shake-up at the company.
Tesla (TSLA) is not having a very good year. Just recently, the company’s market value fell billions of dollars, after Musk ignored few analysts’ questions during the recent earnings call. Though Musk apologized, the company suffered the consequences. Looks like bad news continues to haunt Tesla, as another key executive leaves the company at a time when the company is under scrutiny for the fatal Model X crash.
But the hope of profitability looks bleak as the company continues to lose its top talent. This promoted Musk to implement a major shake-up at the company.
The latest executive to walk out of Musk’s management was Matthew Schwall. He was said to be the prime contact for Tesla with U.S. safety investigators. He left Tesla this week to join the leading self-driving auto-maker Waymo, a unit of Google’s parent Alphabet (GOOGL). This was followed by the sabbatical leave of Dough Field, the chief engineer at Tesla. It is uncertain whether Field will return back.
These departures indicated that the future of Tesla is growing even more worrisome. Elon Musk quickly jumped into action and called for a thorough reorganization of the company that includes flattening of the management.
“To ensure that Tesla is well prepared for the future, we have been undertaking a thorough reorganization of our company,” Musk said in a copy of the memo obtained by CNBC. He added, “Tesla will continue to hire rapidly in critical hourly and salaried positions to support the Model 3 production ramp and future product development.”
As the crucial Model 3 deadline looms and Tesla is struggling to meet the production goals, Musk has no other choice but to opt for a restructuring.