Two prominent figures have exited Tesla on the same day the electric car manufacturer initiated significant workforce reductions, TechCrunch has verified. Drew Baglino, Tesla’s Senior Vice President of Powertrain and Energy, and Rohan Patel, Vice President of Public Policy and Business Development, have departed the company, confirmed by Patel in communication with TechCrunch. Patel cited undisclosed “substantial overall changes” within the company as his reason for leaving. Bloomberg initially reported their departures.
Expressing optimism about his departure, Patel conveyed to TechCrunch, “Good for me and hopefully also good for Tesla.” He highlighted his accomplished tenure, attributing it to his collaboration with a top-notch policy and business development team. Baglino, in a statement on X, expressed the difficulty of his decision to depart after serving 18 years at Tesla. Elon Musk, CEO of Tesla, acknowledged both executives’ contributions in posts on his social media platform, X.
Their exits coincide with Tesla’s workforce reductions aimed at cost-cutting and productivity enhancement, as per an internal email from Musk reported by Electrek and Bloomberg News. Musk disclosed plans to trim “more than 10%” of the company’s global workforce, impacting over 14,000 employees out of Tesla’s 2023 year-end tally of over 140,000.
Musk announced these layoffs following Tesla’s first year-over-year sales decline in three years, amidst a broader softening of electric vehicle demand. The company cautioned investors about potential sales growth significantly lower than its targeted 50% yearly increase. Furthermore, Tesla finds itself amid product cycles, with the high-priced Cybertruck recently entering production and the popular Model Y facing its fourth year without notable updates.
In Musk’s email, he stressed the necessity of scrutinizing all aspects of the company for cost reductions and enhanced productivity as it gears up for the next phase of growth. He acknowledged the unfortunate necessity of workforce reductions due to role duplication resulting from Tesla’s growth trajectory.
Baglino’s departure marks another high-level exit within the past year, following Tesla CFO Zachary Kirkhorn’s resignation in August 2023. Baglino, responsible for overseeing engineering in powertrain and battery technologies, notably engaged with Tesla’s community on Musk’s social media platform. Patel, with a background as a special assistant to President Barack Obama, maintained a similar interactive presence with Tesla customers and enthusiasts in recent months.
Despite shipping a record 1.8 million EVs in 2023, Tesla grappled with pricing adjustments to counterbalance the impact of high interest rates and increased competition. Plans for a lower-cost EV have reportedly been shelved or delayed, with focus shifting towards utilizing the underlying platform for an alleged robotaxi set to debut on August 8, as revealed by Musk.
