In a frank and foreboding email to employees, Elon Musk made it abundantly clear that controlling costs and slashing headcount is Tesla’s new top priority. Elon demanded “absolute relentlessness” on expenses and staffing levels.
Here’s the kicker: Musk warned that starting Tuesday at 10am ET, any Tesla executive with more than three direct reports failing to meet an “excellent, necessary, and trustworthy” standard will be shown the door themselves.
Among the highest-profile departures is longtime leader Daniel Ho, who helmed programs like the Model S, 3, and Y over his 11 years at Tesla. The Supercharger division is also reportedly being completely disbanded, though details on the extent of those cuts remain murky.
Not even Tesla’s government relations squad was spared, with the entire public policy team led by former VP Rohan Patel getting the axe according to the leaked details.
It’s a shocking reversal for the EV leader, who just a year ago was struggling to hire quickly enough to feed insatiable consumer demand for its electric cars. But with economic storm clouds gathering, Musk seems dead-set on battening down the hatches.
While the email’s authenticity isn’t officially confirmed, the departures and cuts outlined align with Elon Musk’s intense cost management style.