Tesla is facing a significant challenge in retaining top engineering talent, with the company experiencing a notable exodus of key executives responsible for its most visible vehicle programs. The most recent and striking departures include the program leads for both the Cybertruck and the Model Y, fueling market concerns over the electric vehicle (EV) maker’s stability amidst lukewarm sales and a major strategic pivot to AI.

Cybertruck and Model Y Leads Depart

The departures of two critical engineering executives were announced over the past week, signaling a growing gap in the automotive division’s leadership:

• Siddhant Awasthi (Cybertruck Program Head): Mr. Awasthi, a Bengaluru-born engineer, announced his departure after eight years at the company, during which he rose from an intern to spearheading the development and successful production ramp-up of the highly anticipated Cybertruck. His exit is particularly significant given the vehicle’s complex manufacturing process.
• Emmanuel Lamacchia (Model Y Program Head): Simultaneously, Mr. Lamacchia, the program manager for the best-selling Model Y SUV, also announced his departure. The Model Y is Tesla’s most popular and highest-selling vehicle globally, making the loss of its program leader a substantial blow to the company’s core business operations.

These exits follow a string of high-level departures this year, including executives from the Optimus humanoid robot and software engineering teams.

The Strategic Shift to AI and Chips

Analysts suggest the increasing executive volatility is a result of Tesla’s deliberate and aggressive shift away from being purely an automaker to becoming a robotics and Artificial Intelligence (AI) company.

• Focus on AI: While the company is losing automotive talent, Elon Musk is intensely focused on vertical integration in AI hardware. He recently doubled down on plans to quickly transition the company’s internal chip production from the AI5 processor to the next-generation AI6 and AI7 chips, which will power its ambitious robotaxi fleet and humanoid robot projects.
• Controlling the Supply Chain: The company is reportedly moving AI chip production away from external suppliers like TSMC to internal facilities and partners like Samsung. Musk has publicly stated his desire to control all aspects of the chip supply chain, viewing it as critical to achieving the “out of this world” performance he expects from future AI systems.

Despite the recent talent hemorrhage, Musk remains bullish, inviting the public to buy Tesla stock and participate in what he terms a massive growth ride fueled by future AI and energy dominance.

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