Tesla loses another manager to layoffs – but this one quit due to morale
The Tesla layoff saga continues, with a manager leaving the company after 7 years. But this time, the manager wasn’t laid off, but rather left on his own volition due to the effect that layoffs had on morale.
It seems like every few days there’s another notice of new layoffs at Tesla. It started with Tesla laying off “more than 10%” of its global workforce in mid-April, a layoff round which had been rumored for some time.
In the wake of that first announcement, we’ve heard of many entire teams that have been cut, many seemingly for rather petty reasons.
Tesla’s entire ad team was cut just a few months after being formed because CEO Elon Musk said the ads were “too generic.” And Tesla’s entire supercharging team felt Musk’s wrath after its standout head, Rebecca Tinucci, apparently did not satisfy Musk’s desire for more cuts – so instead, he axed the entire team, despite it being one of the most-successful within the company.
Tesla also laid off several workers in software and service earlier this week, despite service still being a necessary department to grow as more Tesla vehicles hit the road and continue to age.
The layoffs haven’t just included rank-and-file employees, but many high-ranking executives, leading observers to notice that Musk seems to be trying to isolate himself at the top. Currently, Tesla only has one C-level executive other than Musk himself listed on its corporate governance page – CFO Vaibhav Taneja, who was elevated to that role in September. Tom Zhu is still listed as head of automotive, despite Electrek reporting that he’s been demoted back to head of China earlier this week.
The layoffs are affecting morale, with many employees wondering when the bleeding will stop and if their division might be next to fall to the CEO’s frantic whims. And observers can’t help but wonder why Musk is continuing to take such destructive actions to his own company.
The low morale associated with these layoffs claimed one victim this week, as a Tesla manager decided to leave the company amid the chaos, saying that Tesla “has taken its pound of flesh.”
Rich Otto, head of product launches, resigns from Tesla
Rich Otto was the Head of Product Launches at Tesla, having worked at Tesla for 7 years and previously working at Faraday Future.
Otto started in Tesla’s communications team, working with Tesla’s fleet of vehicles for press and reviewers, and went on to manage that team. He was the person responsible for getting cars to tech reviewers.
After that, Otto moved on to be the head of product launches, acting as the program manager for Tesla’s launch events. He managed the events for the first deliveries of Model S Plaid, Model Y and Cybertruck, and Tesla’s Cyber Rodeo at Gigafactory Texas. He also worked on other aspects of Tesla’s customer-facing communications.
Otto said in a LinkedIn post that he loved the collaborative working environment within Tesla, and most of all loved the people working there.
But now, with the effects of the layoffs on morale, not only are some of the “great people” formerly working at Tesla no longer there (like Daniel Ho, head of Vehicle Programs, who worked with Otto on vehicle launches but was laid off alongside the supercharging team), but those still working there are wondering what the path forward is. In his post, Otto said it’s “hard to see the long-game” of these decisions.
Why leave? It’s a company I love and that has given me so much, but has also taken its pound of flesh.
Great companies are made up of equal parts great people and great products, and the latter are only possible when its people are thriving. The recent layoffs that are rocking the company and its morale have thrown this harmony out of balance and it’s hard to see the long-game. It was time for a change.
-Rich Otto, Former Head of Product Launches at Tesla, on LinkedIn
Otto says that he sent his resignation last week, and that he’s going to take some time off before figuring out what to do next.
Electrek’s Take
We’ve said time and time again that the nature of how Tesla is conducting these layoffs would affect morale, and this is just one example of a high-ranking veteran employee who decided they’d had enough.
Maybe some will consider this a good thing, because if headcount reduction is the most important thing for Tesla right now, then getting people to leave voluntarily can only help in the headcount reduction goal.
However, a company should have a more structured method to its layoffs. This does not seem to be an example of an employee who already had bad morale leaving – it’s an example of an employee whose morale was negatively affected by the chaotic actions of current management, and seemingly unending rounds of layoffs, responding and thinking that he could do better elsewhere away from the unnecessary stress being imposed on everyone in the company by the CEO himself.
If the goal of layoffs is to eliminate low performers, this isn’t how you do it. And if the goal is to eliminate those who already have bad morale, making employees’ morale worse is not the way to do it.
As a contrast, we also saw VW undertake some layoffs in Germany at the start of this month, and that hasn’t led to nearly as chaotic a situation within that company.
Instead of firing entire teams because of personality conflicts with their successful leaders, VW offered contract buyouts to its workers. This means that low-morale workers, or workers close to retirement, can depart on good terms. And current workers can remain secure in their jobs, thus affecting overall morale a lot less (and maybe even positively, as low-morale workers are likely the first to take the buyouts).
And VW still gets its desired money savings from trimming headcount. But it doesn’t have to deal with the poor PR of chaotic layoffs, or of post-employment chaos like sending incorrect severance packages and having no idea which suppliers they’re working with, as Tesla has.
Maybe it would be good for Musk to take some notes from a real CEO, especially while he’s currently trying to convince shareholders to give him $55 billion – enough to pay the 14,000+ employees he’s laid off six-figure salaries for ~40 years – amidst the chaos his part-time management is causing.
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Danish energy giant Ørsted has canceled plans for the Hornsea 4 offshore wind farm, dealing a major blow to the UK’s renewable energy ambitions.
Hornsea 4, at a massive 2.4 gigawatts (GW), would have become one of the largest offshore wind farms in the world, generating enough clean electricity to power over 1 million UK homes. But Ørsted announced that it’s abandoning the project “in its current form.”
“The adverse macroeconomic developments, continued supply chain challenges, and increased execution, market, and operational risks have eroded the value creation,” said Rasmus Errboe, group president and CEO of Ørsted.
Reuters reported that Ørsted’s cancellation of Hornsea 4 would result in a projected loss of up to 5.5 billion Danish crowns ($837.85 million) in breakaway fees and asset write-downs. The company’s market value has declined by 80% since its peak in 2021.
The cancellation highlights significant challenges currently facing offshore wind development in Europe, particularly in the UK. The combination of higher material costs, inflation, and global financial instability has made large-scale renewable projects increasingly difficult to finance and complete.
Ørsted’s decision is a significant setback to the UK’s energy transition goals. The UK currently has around 15 GW of offshore wind, and Hornsea 4’s size would have provided almost 7% of the additional capacity needed for the UK’s 50 GW by 2030 target, according to The Times. Losing this immense project off the Yorkshire coast could hamper the UK’s pace of reducing dependency on fossil fuels, especially amid volatile global energy markets.
The UK government reiterated its commitment to renewable energy, promising to work closely with industry leaders to overcome financial and logistical hurdles. Energy Secretary Ed Miliband told reporters in Norway that the UK is “still committed to working with Orsted to seek to make Hornsea 4 happen by 2030.”
Ørsted says it remains committed to its other UK-based projects, including the Hornsea 3 wind farm, which is expected to generate around 2.9 GW once completed at the end of 2027. Despite the challenges, the company emphasized its ongoing commitment to the British renewable market, pointing to the critical need for policy support and economic stability to ensure future developments.
Yet, the cancellation of Hornsea 4 demonstrates that even flagship renewable projects are vulnerable in the face of economic pressures and global uncertainties, which have been heightened under the Trump administration in the US.
Read more: The world’s single-largest wind farm gets the green light
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The Tesla Roadster appears to be quietly disappearing after years of delay. is it ever going to be made?
I may have jinxed it with Betteridge’s Law of Headlines, which suggests any headline ending in a question mark can be answered with “no.”
The prototype for the next-generation Tesla Roadster was first unveiled in 2017, and it was supposed to come into production in 2020, but it has been delayed every year since then.
It was supposed to get 620 miles (1,000 km) of range and accelerate from 0 to 60 mph in 1.9 seconds.
It has become a sort of running joke, and there are doubts that it will ever come to market despite Tesla’s promise of dozens of free new Roadsters to Tesla owners who participated in its referral program years ago.
Tesla uses the promise of free Roadsters to help generate billions of dollars worth of sales, which Tesla owners delivered, but the automaker never delivered on its part of the agreement.
Furthermore, many people placed deposits ranging from $50,000 to $250,000 to reserve the vehicle, which was supposed to hit the market 5 years ago.
The official timelines from Tesla are pretty useless at this point since they haven’t stuck to any of them, but the latest official one dates back to July 2024 when CEO Elon Musk said this:
“With respect to Roadster, we’ve completed most of the engineering. And I think there’s still some upgrades we want to make to it, but we expect to be in production with Roadster next year. It will be something special.”
He said that Tesla had completed “most of the engineering”, but he initially said the engineering would be done in 2021 and that was already 3 years after the prototype was unveiled and a year after it was supposed to be in production:
Musk commented on the Roadster again in October 2024, but he didn’t reiterate the 2025 timeline. Instead, he called the new Roadster “the cherry on the icing on the cake.”
Tesla’s leadership has been virtually silent about the new Roadster since. Two Tesla executives even had to be reminded about the Roadster by Jay Leno after they “forgot” about it when listing upcoming new Tesla vehicles with tri-motor powertrain.
There was one small update about the Roadster in Tesla’s financial results last month.
The automaker has a table of all its vehicle production, and the Roadster was updated from “in development” to “design development” in the table:
It’s not clear if that’s progress or Tesla is just rephrasing it. Either way, it is not “construction”, which makes it unlikely that the Roadster is going into production this year.
If ever…
Electrek’s Take
It looks like Tesla owes about 80 Tesla Roadsters for free to Tesla owners who referred purchases, and it owes significant discounts on hundreds of units.
It’s hard for me to believe that Tesla is not delivering the new Roadster because the vehicle program would start about $100 million in the red, but at this point, I have no idea. It very well might be the reason.
However, I think it’s more likely that Tesla is just terrible at bringing multiple vehicle programs to market simultaneously. Case in point: it launched a single new vehicle in the last five years.
At this point, I think it’s more likely that the Roadster will never happen. It will join other Tesla products like the Cybertruck Range Extender.
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The 2025 Lucid Air isn’t just any luxury sedan. It’s the world’s most efficient car with over 400 miles of range. After introducing new discounts this month, Lucid is offering over $20,000 in savings on select 2025 Air models.
Lucid Air EV discounts top $20,000 in May
In the first quarter, the Lucid Air was the best-selling EV and the third top-selling sedan overall in its segment, including gas-powered cars.
After launching the 2025 Air Pure last summer, Lucid claimed it was the “world’s most efficient car” at 5.0 miles of range per kWh. That translates to over 420 miles of EPA-estimated range and the highest MPGe rating of any EV at 146 MPGe.
Lucid introduced new discounts this month, making the 2025 Air significantly more affordable. The 2025 Lucid Air Touring is available with up to $20,500 in savings with leases starting at just $599 for 36 months.
The promo includes a $1,000 on-site bonus, a $2,000 conquest offer, a $10,000 Air Credit, and a $7,500 EV credit.
Other trims, including the Lucid Air Pure and Lucid Air Grand Touring, offer discounts of up to $18,000 and $15,500, respectively.
The 2025 Lucid Air Touring starts at $78,900 with 620 HP and 406 miles of range. Lucid is offering 2025 Air Pure models from $69,900, with up to 420 miles of range. The Grand Touring gets up to 512 miles with prices starting at $110,900.
Lucid increased its Tesla trade-in allowance this month, which can save you an additional $4,000. To take advantage of the deals, you must take delivery by May 31, 2025.
2025 Lucid Air trim |
Starting Price | Lease Discounts | Lease From (per month/ 36 months) |
EPA-estimated Range |
| Lucid Air Pure | $69,900 | -$18,000 | $579 | 420 miles |
| Lucid Air Touring | $78,900 | -$20,500 | $599 | 406 miles |
| Lucid Air Grand Touring | $110,900 | -$15,500 | $849 | 512 miles |
| Lucid Air Sapphire | $249,000 | N/A | N/A | 427 miles |
You can also now lease Lucid’s new Gravity electric SUV. According to Lucid’s payment calculator, the 2026 Lucid Gravity Grand Touring can be leased for $1,102 a month.
That’s based on an MSRP of $94,900 with a down payment of $8,030. Later this year, Lucid will launch the lower-priced Touring model, starting at $79,900.
Ready to check out Lucid’s luxury EVs for yourself? You can use our links below to view current offers on Lucid Air and Gravity models in your area.
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