Car manufacturer Tesla is struggling with sales problems and is also under price pressure from China.
That’s why Tesla boss Elon Musk is taking more direct control again and firing top managers. Tesla expert Chris Zheng says Musk is activating his “war mode.”
In addition, Musk takes direct control of sales and his confidant Omead Afshar returns to the company.
The US automobile manufacturer Tesla currently has some construction sites. Tesla recently had to recall around 4,000 Cybertrucks, recently delivered 8.5 percent fewer vehicles and is also under price pressure from competitors from the Far East. Investors are also anxiously awaiting the upcoming quarterly figures.
Tesla boss Elon Musk is responding to these challenges by further expanding his direct control over the company. Internal organizational charts about which “Handelsblatt” first reported, show that at least 35 top managers now report directly to him, which represents a significant increase compared to before. There is a restructuring in the management of the billion-dollar company, Musk is tightening the reins again.
Job cuts and “war mode”
Elon Musk’s announcement that he would lay off ten percent of the workforce illustrates the seriousness of the situation. Tesla expert Chris Zheng designated This management restructuring signifies that Musk is back in “war mode”. This mode would underline Musk’s determination to overcome the crisis.
“War mode” is no stranger to Tesla connoisseurs. The company had successfully navigated previous crises, including a move into mass production in 2018 and financing problems during the 2008 financial crisis.
It is expected that the number of layoffs could potentially rise even further, with some reports suggesting that more than 20,000 employees could be affected. This would mean a significant cut in Tesla’s workforce, which currently has around 140,000 employees. One Report from “BloombergAccording to the company, as part of its latest round of layoffs, it laid off its entire U.S. “growth content” team just earlier this week. As Business Insider reported, Tesla is cutting 300 temporary workers at its plant in Grünheide in Germany.
Musk takes on more tasks
A key element for War Mode CEO Musk will be an increased focus on the battery sector. This is particularly important given the delays in production of the new 4680 cells. Drew Baglino, former head of the drives and energy division, announced his departure shortly before the wave of layoffs. According to the Handelsblatt, Musk himself should take over the tasks in the future. Bonne Eggleston, 4680 Division ManagerBatterieswill report directly to Musk in the future.
In addition, Musk is also keeping a close eye on sales by personally taking over management and having important managers such as Troy Jones and Joe Warden report directly to him again. You previously reported to Tom Zhu, who is considered number two at Tesla.
In addition, Musk confidant Omead Afshar is returning to the company. The executive previously worked at SpaceX after leaving Tesla in 2022 following an internal investigation into the use of “company resources.”