- Tesla is having one of its most challenging years, with falling sales and rising competition.
- The automaker has witnessed a series of high-profile departures over the past year across various departments.
- Now its software boss, in charge of everything from powertrain to battery management, is reportedly leaving.
Another senior Tesla leader is reportedly stepping down from his role, following a string of high-profile exits from the company over the past year. David Lau, the vice president of software engineering at Tesla, is departing after spending 13 years at the company, Bloomberg first reported on Friday citing sources familiar with the matter.
Lau led teams responsible for the software across various vehicle systems. His teams were in charge of everything from powertrain and high-voltage electronics to battery management and data engineering. According to his LinkedIn profile, he joined Tesla in October 2012 and then made his way up the chain to become the vice president of software engineering in January 2017.
His departure may be yet another crack in Tesla’s executive ranks at a time when the company is struggling to regain momentum. Tesla’s influence is dwindling as it reported its weakest first quarter sales in over two years. While it attributed the sales drop to the production ramp up of the refreshed Model Y, critics point to CEO Elon Musk’s political posturing and alignment with far-right politics, which is souring consumer sentiment here in the U.S. and especially in Europe.
Lau joins a growing list of top brass who’ve left in the past year. Engineering chief Drew Baglino and public policy head Rohan Patel both exited last spring around the same time, just as Tesla began sweeping layoffs as a cost-cutting measure. Days before last October’s super hyped Robotaxi reveal, Tesla’s public policy director, Jos Dings, also resigned.
After years of ferocious growth, Tesla’s momentum started fading last year. Analysts initially pointed to the lack of new models and the pivot to robotaxis and AI. But the situation has worsened since. Musk’s increasingly erratic behavior—from a controversial salute at a rally to the decimation of key regulatory agencies and firing of thousands of American government workers—has triggered protests worldwide. Tesla owners are even ditching their vehicles in protest.
Nonetheless, the automaker is on track to have a busy year on multiple fronts. Deliveries of the refreshed Model Y have started in the U.S. It plans to launch the robotaxi ride-hailing service in June in Austin and then expand to other cities this year and next year. Tesla also plans to upgrade the aging Model S sedan and Model X SUV, whose sales have been plummeting due to lack of upgrades. Cheaper models are also on their way, the company says.
Musk is said to be stepping down from his role at the Department of Government Efficiency, but the brand damage may already be done. And top talent walking out the door isn’t going to make matters easy.
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