Tesla management churn toughens test of Musk’s management chops

service left for Lyft Inc. All this churn complicates an already challenging test for Musk: to prove that he can operate his companies as capably as he’s shown an ability to build them.

“Elon Musk has to be careful to stabilize his company” amid reports of quality issues with the Model 3, a recent production pause for the car and the series of management changes, said Ferdinand Dudenhoeffer, the director of the University

Then Tesla disclosed in a tersely worded regulatory filing last week that chief accounting officer Eric Branderiz had left for personal reasons. On Tuesday, Bloomberg News reported that Susan Repo, corporate treasurer and vice-president of finance, had become chief financial officer of another company.

“We’d like to thank Susan for her five-year contribution to Tesla and congratulate her on becoming a CFO,” were going to be stepping into “production hell,” he still proceeded to forecast that the company would be able to make 1,500 of the cars by the end of September.

Tesla came up well short of that plan, building only 260 Model 3 sedans in the third quarter. The next goal Musk set was to reach a weekly production rate of 5,000 of the cars by the end of the year.

The company again came nowhere close to its target, delivering only 1,550 Model 3s for the entire fourth quarter. It pushed back weekly production goals again, saying it was planning to hit a 2,500 rate by the end of March.

Tesla needs to make progress with the Model 3 because it’s hired and expanded as though it’s already transitioned from primarily selling only highpriced luxury vehicles. It now has a workforce of more than 37,500 employees.

“Our future success depends upon our ability to attract and retain executive officers and other key technology, sales, marketing, engineering, manufacturing and support personnel,” the company said in a regulatory filing last month. Tesla noted that it competes with “both mature and prosperous companies that have far greater financial resources” and startups offering “short-term growth opportunities.”

Senior executives who have left the company in the past year include former CFO Jason Wheeler; Lyndon and Peter Rive, Musk’s cousins who had joined him in co-founding SolarCity Corp.; Chris Lattner, an Apple Inc. hire who left after leading Tesla’s Autopilot engineering team for less than six months; Kurt Kelty, a longtime battery executive; and Diarmuid O’Connell, vicepresident of business development.

Tesla has also made several key hires during that span. Gaby Toledano, a director on several boards who worked at Electronic Arts Inc. for more than a decade, joined Tesla as chief people officer in May and reports directly to Musk. Felicia Mayo, the head of diversity and inclusion, joined in August after working for Juniper Networks Inc. and Oracle Corp.

“This is Silicon Valley, and you have unique opportunities if you’ve worked for Elon,” Gene Munster, the cofounder of Loup Ventures and a former tech analyst, said by phone. “Apple went through this with Steve Jobs. Visionaries can be difficult to work for, but that’s not why people are leaving. They are leaving because they made a ton of money and they can write the next chapter of their careers.”