Tesla (TSLA) investors are facing growing concerns as a wave of senior executives has left the company over the past year. The departures, due to work pressures and tensions around Elon Musk’s political involvement, have raised questions about leadership stability.
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Meanwhile, Tesla is scheduled to release its third-quarter delivery and production numbers on Thursday. Analysts expect Tesla to beat Q3 forecasts on strong EV demand and efficient production. TSLA is up 34.6% in the past month but down 0.46% pre-market on Tuesday.
Executive Shakeup Hits Tesla
At Tesla, several key executives have left, including leaders in U.S. sales, battery and powertrain operations, public affairs, and the chief information officer. In addition, key members of the Optimus robot and AI teams, areas Musk has prioritized for the company’s future, have also departed.
The shake-up has been even faster at xAI, Musk’s two-year-old AI startup, which recently merged with his social network X. Its chief financial officer and general counsel both left after very brief tenures, departing within a week of each other.
Why Is Tesla Losing Top Talent?
While some executives left voluntarily after long tenures to start new ventures or take career breaks, others quit due to burnout, frustration with Musk’s shifting strategies, mass layoffs, or disagreements with his political actions, according to sources cited by the Financial Times.
Some sources say employees view Musk’s feud with OpenAI co-founder Sam Altman as adding pressure on staff. Others noted concerns over Musk’s backing of Donald Trump and his endorsement of far-right figures in the U.S. and Europe.
Additionally, a veteran Tesla executive stated that Musk’s actions are impacting employee morale, retention, and hiring. On the other hand, Tesla Chair Robyn Denholm emphasized that while departures make the headlines, the stories of new hires often go unnoticed. She assured that Tesla’s pipeline is strong and the company continues to attract top talent.
What Is the Price Target for Tesla Stock?
According to TipRanks, TSLA stock has received a Hold consensus rating, with 14 Buys, 12 Holds, and eight Sells assigned in the last three months. The average Tesla stock price target is $345.28, suggesting a potential downside of over 20% from the current level.
