Does The Recent Executive Exodus Mean That Telsa Is In Big Trouble?

There’s something about EV manufacturers that elevates the turnover rate of high-ranking employees. It seemed like we reported on Faraday Future losing executives almost daily for two consecutive years, but Tesla now appears to have its own difficulty retaining talent. The automaker lost two of its senior financial executives this month as it prepares to report on the Model 3 sedan’s progress (or lack thereof). Is this the beginning of the end for the EV manufacturer? Probably not. It’s easy to obsess about Tesla’s status and speculate endlessly on the health of the brand, but the company’s all-important stock price has yet to crash and Elon Musk has promised to remain at its helm for the foreseeable future. However, the firm may need to do some housekeeping to ensure it doesn’t lose the trust of its investors.

supermoto - 3/15/2018 12:03:22 PM

+2 Boost

Smart money is always in bonds, and the TESLA 17/25 REG.S bonds are trading 93 cents on the dollar after only 7 months. Not good.

Also, Tesla's presedent of global sales and service quit in Jan. Why on earth would 3 execs quit (2 right before the quarter-end) if the future was so bright?

PUGPROUD - 3/15/2018 1:18:21 PM

+1 Boost

If executives who stay start dumping their stock then its time to worry.

mre30 - 3/15/2018 3:19:21 PM

+4 Boost

The Chief Accounting Officer quit about a month ago and more than any other departure, I would say that, the CAO vacancy is a very ominous sign, absent any other facts.

Tesla's 12/31/2016 10K (i.e. the annual SEC report) was filed on March 1, 2017. To my knowledge, Tesla filed its 12/31/2017 10K on 2/28/18.

There is something called a "going concern disclosure" which is where Tesla's independent auditor gives assurance that Tesla will continue in a state of solvent operations for the next 12 months after the audit date. It is a primary responsibility of the Chief Accounting Officer to sign off on the 10K.

MDarringer - 3/15/2018 6:45:04 PM

+3 Boost

They see the disaster looming and are jumping ship.