Welcome back to the Elon Musk podcast. This is a show where we discuss. The critical. Crossroads the shape. SpaceX. Tesla X, The Boring Company, and Neuralink and I'm your host Will Walden. These are turbulent times at Tesla because the executive that overseas cyber truck manufacturing had recently left the company, marking another high profile departure under CEO Elon Musk's leadership.
Their exit was announced via a LinkedIn post celebrating his fifth anniversary with Tesla, a tenure that spans significant roles across various manufacturing facilities, including the Shanghai Gigafactory and also the Austin factory. Now Zoo's departure adds to a series of exits by senior management at Tesla, raising questions about the stability of its leadership.
His company grapples with challenges surrounding its latest vehicle, the Cyber Truck. Now, this electric pickup has been plagued with production issues, from its unconventional design to concerns about the quality of its assembly, suggesting deeper problems within Tesla's operations. The specific reasons behind Zhu's departure remain unclear, with no confirmation on whether he was laid off or left
voluntarily. His exit coincides with Tesla facing a string of manufacturing setbacks and public relations challenges, notably a recent recall involving every sold cyber truck in the US due to a serious flaw in the design of the accelerator pedal. Now, Tesla has also been undergoing broad organizational layoffs, impacting at least 10% of its workforce, with rumors suggesting the cuts could reach
up to 20%. These layoffs have spanned across several departments, most heavily affecting those involved with vehicle manufacturing and new product launches. Now, I missed these tumultuous times at Tesla. The head of product launches, Rich Auto, also departed, expressing dissatisfaction with the company's direction and a very candid LinkedIn post that was later removed.
And Otto's resignation reflects growing discontent among Tesla employees, exacerbated by recent firings and ongoing operational challenges. Now, Tesla's ambitious goals for the Cyber Truck have also seen setbacks in its execution. Despite achieving a production milestone of about 1000 units per week, numerous customers have reported significant quality issues, including unexpected coolant leaks and random shutdowns, further tarnishing Tesla's reputation.
Other executives have recently left Tesla, including Drill Baglino, former President, former Senior Vice President of Powertrain and Energy Engineering, and Martin Vicha, the Vice President of Investor Relations. These departures signal a potentially worrying trend of instability within Tesla's upper management ranks. Now, in response to these ongoing issues, Tesla has been pushing forward with his production goals. Last month, the company reported meeting its target production
rate for the cyber truck. Although it remains to be seen whether these vehicles will meet customer expectations, especially for those willing to pay up to $100,000 for the truck. Now, the repeated executive exits and persistent production problems suggest possible strategic misalignments with Tesla, especially as the company shifts focus towards autonomous driving technology under Musk's
new direction. This pivot raises questions about the future of Tesla's traditional electric vehicle manufacturing operations and also the $25,000 Tesla model, whatever it's going to be called now Jews Own words on LinkedIn reflects the mixed sentiment that's going on right now. They celebrated their achievements with Tesla Cybertruck program, but also marked an end to his journey
with the company. His leadership was crucial in ramping up production to a significant throughput, which makes his departure all the more impactful. The frequent leadership changes in layoffs are not just internal issues, but have started to affect Tesla's public image and also the stock price. Recent reports suggest a decline in Tesla stock value correlating with the company's layoffs and
ongoing production issues. But looking forward, Tesla's strategy remains under scrutiny as it navigates to these high profile exits and production challenges. The company's ability to stabilize its workforce and then execute on its manufacturing goals will be crucial to maintain investor confidence and customer satisfaction. And in light of these developments, Tesla's road ahead
appears fraught with challenges. The company must address both internal management issues and external production quality concerns to regain stability and ensure the success of its future projects, including the Cyber Truck. And as Tesla continues to navigate these turbulent times, we will be focusing on the Cyber Truck production. There may be systemic issues. Involved. And the outcome of these efforts will likely have a lasting impact on Tesla's position in the EV market.
Could be sliding, which is time will tell with these things, With so many people being fired and executives leaving, it's a mass departure for Tesla now. The broader implications for the EV industry could impact supply chains and competitor strategies, and they'll also be influenced by how Tesla manages its current challenges. And ultimately, the departure of these executives and other key players in Tesla shows that there's struggles within the company.
Not everyone's on board with Elon's new direction or the change of direction when they think everything's going well. These issues, if not duress, could hinder Tesla's growth and its influence in the rapidly evolving EV sector. For now, Tesla's focus on ramping up production and resolving quality issues remains paramount. How the company overcomes its current hurdles will be crucial in determining its future trajectory and ability to innovate. Hey, thank you so much for
listening today. I really do appreciate your support. If you could take a second and hit the subscribe or the follow button on whatever podcast platform that you're listening on right now, I greatly appreciate it. It helps out the show tremendously and you'll never miss an episode. And each. Episode is about 10 minutes or less to get you caught up quickly.
And please, if you want to support the show even more, go to patreon.com/stage Zero and please take care of yourselves and each other and I'll see you tomorrow.