Eltrys reports that two high-profile Tesla executives left the company the same day it laid off thousands of workers.
Patel informed Eltrys that Tesla’s SVP of Powertrain and Energy, Drew Baglino, and VP of Public Policy and Business Development, Rohan Patel, have left the company. Patel left the firm due to “big overall changes,” which he did not describe. Bloomberg initially reported their departures.
“Good for me, and hopefully also good for Tesla,” Patel told Eltrys. “Had an amazing run and accomplished way more than I could have imagined, working with the best policy/bizdev team in the business.” Baglino wrote on X that leaving Tesla after 18 years was a “difficultdecision.” decision.” Tesla’s Musk, Tesla CEO, congratulated them on X for their time at the company. 
Electrek and Bloomberg News claimed that Musk issued an internal email to colleagues announcing their exits as Tesla laid off thousands of workers to save costs and enhance efficiency. Musk claimed in an email that Tesla is reducing “more than 10%” of its worldwide workforce. Tesla will have approximately 140,000 workers in 2023, so the layoffs might affect more than 14,000 individuals.
Musk announced the layoffs two weeks after Tesla reported its first year-over-year sales dip in three years, despite cooling EV demand. The business cautioned investors that 2024 sales growth might be “notably lower” than its 50% annual aim. For the first time in years, it’s also in between product cycles, with the pricey Cybertruck just beginning production and the Model Y approaching its fourth year without major changes.
“As we prepare the company for our next phase of growth, it is extremely important to look at every aspect of the company for cost reductions and increasing productivity,” Musk said in an email. He claimed Tesla’s development has caused “duplication of roles and job functions in certain areas.”
This initiative included a full examination of the organization and the painful decision to cut our worldwide workforce by more than 10%. Despite my reluctance, we must proceed. Musk added, “This will make us lean, innovative, and hungry for the next growth phase cycle.”
Baglino’s retirement follows Tesla CFO Zachary Kirkhorn’s August 2023 exit. Baglino managed powertrain and battery engineering. He was also one of Musk’s most responsive executives on social media. In recent months, Patel, a former Obama special assistant and climate and energy adviser, engaged with Tesla consumers and admirers.
Tesla delivered 1.8 million EVs in 2023, a record. However, the corporation spent much of the year reducing prices on its most popular models to offset rising loan rates and worldwide competition. The business has also apparently abandoned ambitions to manufacture a $25,000 EV and instead used the technology to power an alleged robotaxi, which Musk stated would debut on August 8.
