Tesla’s Series Of Management Woes Impacted Low Company Confidence
Tesla has been experiencing a huge decline in its workforce as the latest data revealed that the U.S. electric vehicle (EV) giant's posted jobs went down from 2,510 in January to 1,100 as of late. Current and former employee sentiments suggest that the company may have management and leadership issues.
According to Reuters, some of the former and current employees the outlet interviewed hinted that Tesla chief Elon Musk may have loopholes on his management style. Furthermore, the exit of some executives over the last few months affected the firm's overall leadership.
It didn't help that Tesla saw layoffs earlier this year amid growing costs and weaker demand for its electric cars. While softening demand figures was initially thought to have been the only problem that the U.S. company had, some analysts said there's more.
Musk has also appeared to have become stricter in terms of expenses. He said in a company email in May that he will join the team reviewing expenses since spending could largely affect Tesla's capital raise as a whole.
Aside from the possibility of mishandled expenses, company shares dropped by 39 percent as of late. Adding to the burden is the widespread rate cuts from industry experts who are concerned about declining global deliveries of Tesla EVs.
Glassdoor ratings have fallen over the last two years including Musk's CEO approval rating seeing a massive drop from 90 percent in 2017 to 52 percent this year. As of April, Tesla fell to the 17th spot in LinkedIn's "Top Companies 2019" list.
It may be surprising for Tesla enthusiasts who saw the company garner the fifth spot two years ago when hopes were high for what could have been one of the most successful EV firms in the world.
Shareholders are set to vote on several proposals on Tuesday, including the re-election of two board members. According to Business Insider, a major shareholder service has been calling against the nomination of Ira Ehrenpreis on grounds of equity awards climbing significantly.
Another critical vote that shareholders will make a decision on by Tuesday afternoon is the continuance of Tesla's system of allowing employees to purchase company stocks. The company said in a proxy statement that it "strongly promotes" the stock ownership culture.
It has yet to be revealed how the results of the votes will affect Tesla's current situation. Some analysts believe the EV behemoth can still recover, especially if adjustments are made to restore confidence in Musk's leadership and his administrative team.
Two Tesla executives are leaving following the 2019 annual meeting namely Linda Johnson Rice and Brad Buss. Next year, Antonio Gracias and scandal-embroiled Steve Jurvetson will also make an executive exodus.