Musk Memo Says Tesla in Process of a ‘Thorough Reorganization’

A memo sent to Tesla employees Monday lays out a plan to “flatten” its management structure in an effort to improve communication and efficiency.

The full memo obtained by CNBC says:

To ensure that Tesla is well prepared for the future, we have been undertaking a thorough reorganization of our company. As part of the reorg, we are flattening the management structure to improve communication, combining functions where sensible and trimming activities that are not vital to the success of our mission.

To be clear, we will continue to hire rapidly in critical hourly and salaried positions to support the Model 3 production ramp and future product development.

Musk mentioned plans for some sort of reorganization during the company’s most recent earnings call that would contribute to the company’s efforts for profitability. He said the reorganization would mostly impact third-party contractors. “We’ve got barnacles on barnacles,” he said. However, the latest memo seems to indicate there will be a more significant round of layoffs.

Musk has also mentioned that cost-cutting measures include a more thorough review of expenditures. He said the plan is to “cut everything that doesn’t have a strong value justification,” and any expenditure above $1 million for the next year must be personally approved by him.

 

[Barklikeadog]

I don't think you do.

Listen. Musk is the reason for everything Tesla is today - the good, the great and the bad. Good and great outweighs (by a huge margin) the bad. So your assertion that he created the problem is just plain silly. It is like saying, he is the reason for those landings that failed initially. Of course, if he hadn't started SpaceX, those landings would not have failed. If he had not been that successful with 'S' he would not have made that mistake in the 'X'.

So the only way for him or anyone not to have made that mistake is to not start Tesla and make it a successful company.

I will repeat it one more time - I don't think you do.

'repeat it one more time'

If they fail I wouldn't be able to buy my Tesla Truck in 7 years.

 

[sandpiper]

I guess you conveniently skipped over the line 'all the great things Tesla has done'
but that is ok, pretty common around here. If you say Elon is God, you are part of the crew. If you say that
EM has done a lot of great things, but has screwed up a lot too, the 'lot of great things' part is completely ignored
and the internet attack is directed at the 'screwed up' portion as if the other doesn't exist.

Where does the buck stop, sandpiper? With "They"?

You completely missed the point of my comment. I have no illusions that Elon is a "god", or some such nonsense. My point is that his flaws and, by extension, the flaws of the company are an inevitable consequence of that which has made them successful. It's a little bit like congratulating the winner of a road rally for a great race, and then in the same breath chastising them for not driving cautiously enough.

The type of insanity that exists at Tesla has absolutely been required to get them to where they are. But, I will also concede that they're at an inflection point of sorts. A more systematic approach will be required for them to get to the next stage. And, at some point, Elon will have to change roles - to become more of a visionary, and have less direct involvement in management. I suspect that he's self-aware enough to realize that, and will be able to step aside.

 

[Barklikeadog]

You completely missed the point of my comment. I have no illusions that Elon is a "god", or some such nonsense. My point is that his flaws and, by extension, the flaws of the company are an inevitable consequence of that which has made them successful. It's a little bit like congratulating the winner of a road rally for a great race, and then in the same breath chastising them for not driving cautiously enough.

The type of insanity that exists at Tesla has absolutely been required to get them to where they are. But, I will also concede that they're at an inflection point of sorts. A more systematic approach will be required for them to get to the next stage. And, at some point, Elon will have to change roles - to become more of a visionary, and have less direct involvement in management. I suspect that he's self-aware enough to realize that, and will be able to step aside.

You certainly have a way of twisting things.

How about...
Hey, congratulations for winning the road race... by the way you told everyone to bet that you would finish in under an hour... but it has been six hours. Do you owe them an apology?

You also said that you would buy beer for everyone after the race, but now you say that you will buy the beer next year??

Oh by the way, great race, you the man, I trust you!

 

[BozieBeMe2]

I totally agree, Tesla reminds me of a lorry in Africa, every spare space has some one hanging on for dear life!
No one wants to let go for fear of being left behind and they have totally blocked the windshield so they are screaming directions to the driver. Notice that if the lorry wasn't moving, NO one would pile on