Another big loss for Tesla has been its leadership team, as the top manager in charge of the company’s most popular car, the Model Y, Emmanuel Lamacchia, has announced his exit. His departure is the second key program manager to leave the electric vehicle manufacturer in one day, a development that has raised further concerns about turnover among the core engineering and product leadership staff at Tesla.
An Innovation and Success Heritage
Lamacchia announced his exit in a LinkedIn post and wrote about his eight-year tenure at Tesla.
“After 8 incredible years, I’m moving on from Tesla,” he wrote. “What a journey it’s been… from leading NPI for Model 3 and Model Y variants to becoming the Vehicle Program Manager for Model Y, the best-selling car in the world! Leading the All-New Model Y launch was the highlight: converting all 4 factories across 3 continents in just 2 weeks. Something that had never been done before in the auto industry.”
Lamacchia was instrumental in expanding the production of the Tesla Model Y across the world during the period that he was in charge. His role in organizing several factory changes, including the shift of Fremont to Shanghai, Berlin, and Austin, played a key role in making the Model Y an International best-seller. In 2023, the crossover SUV sold more cars in the world than traditional combustion engine automobiles, becoming the top-selling automobile in the world, and solidifying Tesla as a force in the automotive market.
Two Key Departures in One Day
Nevertheless, the exit of Lamacchia is not a one-off affair. Siddhant Awasthi, the leader of the Cybertruck program, also resigned earlier in the day. The fact that two key program managers are both leaving at the same time adds to a greater issue in leadership within the vehicle program department at Tesla – a department that has witnessed much turbulence in the last year.
The program management team, which used to be led by Daniel Ho at Tesla, has been wiped out effectively. Ho, who can be credited with spearheading the Model 3, the first product of Tesla to achieve mass market success, was dismissed as part of mass layoffs last year. Soon after he left thet Ho became part of Waymo, the self-driving division of Alphabet. His departure was preceded by David Zhang, who was the second-oldest vehicle program manager at Tesla, and he also resigned around the same time.
Could Leadership Departures Be Tied to Musk’s $1 Trillion Pay Package?
Tesla has created a curious timing of its recent leadership exits, particularly after only a few days earlier, the shareholders had passed the historic Elon Musk compensation package of one of the largest pay packages in corporate history. The rewards plan, which is meant to compensate Musk if Tesla achieves aggressive market capitalization and growth targets, reinstates him as the core of the company in its future. Nevertheless, it might have created internal discomfort among senior leaders who feel undervalued or overshadowed as a result.
According to some industry onlookers, the huge concentration of authority and reward around Musk may be making some major executives reevaluate their positions. As Musk, with his unstoppable vision and management, has led Tesla to the top of the EV revolution, his authoritarian management approach and the ever-growing top-down structure of the company have always been mentioned as the primary cause of burnout and turnover among senior employees.
