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Tesla Inc.‘s (NASDAQ:TSLA) head of product launches has resigned from the company, joining the long list of senior executives to leave as company CEO Elon Musk seeks to downsize the company's workforce.
What Happened: Rich Otto took to LinkedIn to announce his departure from the electric vehicle giant.
Otto’s departure adds him to a growing list of senior executives who have left Tesla in recent weeks, including Senior Director of Charging Infrastructure Rebecca Tinucci, Director of New Product Introduction Daniel Ho, Senior Vice President of Powertrain and Energy Engineering Drew Baglino, and Vice President of Public Policy and Business Development Rohan Patel.
“Why leave? It's a company I love and that has given me so much, but has also taken its pound of flesh,” Otto wrote in his post. He’s been with Tesla for about seven years, since 2017.
“Great companies are made up of equal parts great people and great products, and the latter are only possible when its people are thriving,” Otto wrote.
“The recent layoffs that are rocking the company and its morale have thrown this harmony out of balance and it’s hard to see the long game. It was time for a change.”
Otto expressed hope that both the company and the laid-off employees can recover.
Why It Matters: Late last month, Tesla announced plans to cut costs through a 10% workforce reduction, impacting an estimated 14,000 employees. These layoffs reflect broader challenges facing the company, including declining sales and pricing pressures.
For the first quarter, Tesla reported revenue of $21.3 billion, down from the $23.33 billion reported a year earlier. This is the first time the company’s quarterly revenue has fallen since the pandemic in 2020. Tesla’s net profit stood at $1.13 billion, falling 55% from $2.51 billion a year earlier.
Price Action: Tesla stock closed 1.7% lower on Wednesday at $174.72 and dropped 0.2% after hours. The stock is down nearly 30% year-to-date, according to data from Benzinga Pro.
Check out more of Benzinga's Future Of Mobility coverage by following this link.
Read More: Rivian Aims To Churn Out 215K EVs From Illinois Factory, With R2 Leading Charge, And Save Over $2B
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Posted In: TSLA
