Markets

Tesla is bleeding executives, and experts say it may create problems for the company

Elon Musk
Tesla CEO Elon Musk. Evan Vucci/AP Images
Read in app

The Wall Street Journal reported on Wednesday that Dane Butswinkas, Tesla's general counsel, would leave the automaker just two months after joining it, the latest in a long string of executive departures.

Tesla is known for its high rate of turnover among executive and senior-level employees. The past year has seen senior employees in Tesla's manufacturing, engineering, finance, sales, and communications departments leave the automaker.

Tesla CEO Elon Musk has developed a reputation as a challenging boss to work for, and the automaker is known for having a demanding, fast-paced work culture, Ed Kim, the vice president of industry analysis at the automotive research firm AutoPacific, told Business Insider, an impression employees have shared in media reports.

"That sort of company culture doesn't really work for everybody," Kim said.

Read more: Tesla's top lawyer is leaving the company after 2 months — here are all the key names who have departed in recent months

Tesla plans to introduce a crossover SUV, a semitruck, and a pickup truck while building a factory in China and increasing production of solar roof tiles and home batteries in the coming years. These initiatives will make Tesla a more complicated business to run and require a more stable management team, said Maryann Keller, the principal at the automotive consulting firm Maryann Keller & Associates.

"You want a stable executive team," Keller said. "For a company that is growing and has such huge and global plans, it can't be a one-man show."

The level of turnover Tesla has experienced in its senior ranks is unusual in the auto industry, which is known for stable management teams, and suggests that too much responsibility is concentrated in Musk. The high frequency of executive departures could raise questions for potential Tesla employees and make it more difficult for the automaker to recruit, Keller said.

Tesla did not immediately respond to a request for comment.

Read next

I'm a senior transportation reporter at Insider covering electric vehicles, automated-driving technology, and ride-hailing. I joined Insider in October 2017 and previously worked as an intern at the St. Louis Post-Dispatch. I graduated from Washington University in St. Louis with degrees in film and media studies and business economics. You can follow me on Twitter @matousekmark and email me at mmatousek@bjinnox.com If you have sensitive information you'd like to share and don't feel comfortable sending it to my work email or via a direct-message on Twitter, you can contact me on the encrypted messaging app Signal at 646-768-4712 or email my encrypted address at mmatousek@protonmail.com. Here's some of my work: Uber insiders are divided over Dara Khosrowshahi's leadership, with some worried the company has become 'boring' and 'confused' about its future Nikola founder Trevor Milton convinced the world he was the next Elon Musk. Insiders say a history of lies brought the billionaire down. 17 hours a day, 7 days a week: Cruise-ship workers describe the grueling conditions they face on the job We talked to 42 insiders about Tesla's factory of the future. They revealed the corners cut to hit ambitious production targets. 70-hour weeks and 'WTF' emails: 42 employees reveal the frenzy of working at Tesla under the 'cult' of Elon Musk Tesla is transforming how cars are sold. But 27 insiders say the company's methods mean slashed pay and living under the constant threat of getting laid off. Uber insiders reveal how DoorDash stole its delivery crown and left Eats in the dust Uber's trying no-meeting Mondays to give employees a break from 'tiring' back-to-back meetings, a leaked email reveals Leaked email reveals a Tesla VP expressed concern about employees coming to work with COVID-19 symptoms Leaked document reveals Nikola flip-flopped on whether it would spend any of its $17 million of customer deposits to fund the Nikola One Insiders reveal Alibaba's Jack Ma sought a partnership with Canoo to build electric delivery vans, but the deal fell flat because the startup couldn't meet his aggressive timeline Leaked email from Elon Musk reveals the Model Y is experiencing production 'challenges' while passing the Model 3 as the top priority at Tesla's US car factory Leaked email and audio reveal Carnival-owned Holland America has struggled to give refunds to some customers Leaked documents reveal the severance packages laid off Carnival UK workers will receive Inside Tesla's overhaul plan for its sales and delivery teams to solve one of its toughest customer challenges