Tesla Inc Chief Elon Musk Confirms Reorganization after Staff Departures, Production Problems
Tesla Inc Chief Elon Musk Confirms Reorganization after Staff Departures, Production Problems
Amid the manufacturing problems, senior Tesla executives have departed or cut back work.

Tesla Inc chief Elon Musk told employees the company was undergoing a "thorough reorganisation" as it contends with production problems, senior staff departures and recent crashes involving its electric cars. In his email to staff, Musk said Tesla was "flattening the management structure to improve communication," combining functions and trimming activities "not vital to the success of our mission" in the reorganization.

The company confirmed the contents of the email, which was first reported on by the Wall Street Journal. Tesla is at a critical juncture as it tries to fix an inauspicious launch of the Model 3 sedan, a mid-market car crucial to its success and future profitability that has been plagued by early production problems.

Amid the manufacturing problems, senior Tesla executives have departed or cut back work. Waymo, Alphabet Inc's self-driving unit, said on Sunday that Matthew Schwall had joined from Tesla, where he was its main technical contact with U.S. safety investigators.

Last week, Tesla said Doug Field, senior vice president of engineering, was taking time off to recharge. The company is developing multiple new vehicles, including a semi truck, and has registered a new car firm in Shanghai in a likely step toward production in China.

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Tesla will still rapidly hire people to fill critical positions "to support the Model 3 production ramp and future product development," Musk said in Monday's email. The company changed the terms of its borrowing agreement with banks to allow it to pledge its Fremont, California, auto plant as collateral.

In a Twitter post on Monday, Musk denied a Wall Street Journal report that Tesla had rejected a system that would have tracked driver eye movement when using Autopilot for cost reasons.

"This is false," Musk wrote. "Eyetracking rejected for being ineffective, not for cost. WSJ fails to mention that Tesla is safest car on road, which would make article ridiculous. Approx 4X better than avg," Musk said.

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