News
Elon Musk explains Tesla strategy behind layoffs as executives depart
Tesla CEO Elon Musk said the company has to “reorganize and streamline the company for the next phase of growth” every five years after at least 10 percent of its global workforce was trimmed, and two key executives left the automaker on Monday.
Tesla has been preparing to enter a new phase of growth within its automotive business as competition increases and it realizes a critical need to update its product portfolio.
Although the Model 3 was recently refreshed and the Cybertruck was first delivered less than six months ago, Tesla is preparing to launch a new, next-generation vehicle platform, which will enable its next growth stage.
Scheduled to begin in the second half of 2025, the next-generation platform will be what the Robotaxi and rumored $25,000 vehicle will sit upon.
However, it is not going to come without turbulence and challenge. Tesla told investors earlier this year it would experience “notably lower” growth rates in 2024 and early 2025 as it focuses on the new platform.
This morning, the challenges for Tesla continued as it announced it laid off around 10 percent of its workforce. Then, Senior Vice President of Powertrain Drew Baglino and Vice President of Public Policy and Business Development Rohan Patel announced their departures from Tesla.
Breaking: Tesla exec Drew Baglino leaves EV maker after 18 years
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Layoffs and Executive Departures
“As we prepare the company for our next phase of growth, it is extremely important to look at every aspect of the company for cost reductions and increasing productivity,” Musk said in an email to employees.
“As part of this effort, we have done a thorough review of the organization and made the difficult decision to reduce our headcount by more than 10% globally. There is nothing I hate more, but it must be done,” he continued.
The email details the reason for the layoffs being an enabler to getting “lean, innovative, and hungry” in preparation for the next growth phase.
However, the trimming of employees went further than lower level associates. Baglino and Patel, who have been with Tesla for 18 and 8 years, respectively, also announced they were leaving the company.
Tesla VP Public Policy Rohan Patel departs company after 8-year stint
It remains unclear as to what Baglino and Patel’s reason for leaving was at this point. Both said they plan to take time off and be with family.
‘Reorganize and streamline’
Musk explained in a communication on X that Tesla’s decision to trim the excess at the company comes from a need to “reorganize and streamline” every five years.
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About every 5 years, we need to reorganize and streamline the company for the next phase of growth
— Elon Musk (@elonmusk) April 15, 2024
As Tesla prepares for the next growth phase, the name of the game is cost reductions and increases in productivity.
Layoffs are an unfortunate part of this process, and somewhere between 10 and 20 percent of Tesla’s global workforce was eliminated.
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Elon Musk continues to tease the unveiling event for the Tesla Roadster, a continuing trend that has grown into a bigger game of “When” for fans who have been waiting years for the car to finally enter production.
A video shared on X of the Joe Rogan Experience podcast that Musk appeared on last year, teasing the Roadster unveiling, was shared once again on the social media platform. The poster said the Roadster event will be “unforgettable.”
Musk agreed:
Yes
— Elon Musk (@elonmusk) August 12, 2026
The timing is interesting because just yesterday, Musk said that we will be getting flying cars, and for years, Tesla has hinted that it could develop a SpaceX cold gas thruster package that would help the car float or fly for a short period of time.
It would be reasonable to assume Tesla’s major delays with this unveiling event are likely caused by the company’s need to break the rules and push the envelope on nearly everything. Last July, Lars Moravy, Tesla’s VP of Vehicle Engineering, said:
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“Roadster is definitely in development. We did talk about it last Sunday night. We are gearing up for a super cool demo. It’s going to be mind blowing. We showed Elon some cool demos last week of the tech we’ve been working on and he got a little excited.”
The latest updates that Tesla has given us are that the Roadster is in design development, and it did have several potential dates for an unveiling event this year, including April. It was then pushed to August.
However, there are no clues as to when Tesla will be ready, and fans are certainly getting frustrated with the delays.
For what it is worth, Franz von Holzhausen told Jay Leno this week that the event would be “very soon.”
We sure hope.
Lifestyle
Tesla’s driverless Cybercab just passed a big test with State Governor
Florida’s governor rode Tesla’s Cybercab at a closed test track and called the experience impressive.
Florida Governor Ron DeSantis rode in a Tesla Cybercab on a closed test track this week and came away impressed, posting on X that the vehicle “successfully navigated all hazards — a kid running into the street, a crash with police stopping traffic, a Model S cutting us off, etc.” He called the ride “impressive.”
The stop was part of a broader event Monday at SunTrax, a 775 acre state owned proving ground in Auburndale that Florida built specifically to test autonomous and connected vehicles before they reach public roads. Standing next to a gold Cybercab, DeSantis described the car in plain terms: “You go in there and you just sit. You have a screen. There’s no steering wheel, no pedals. Clearly these things could be very beneficial.”
We took a ride on a robotaxi on the Suntrax course and it successfully navigated all hazards — a kid running into the street, a crash with police stopping traffic, a Model S cutting us off, etc.
Impressive! https://t.co/FVAkzFLz3r
— Ron DeSantis (@RonDeSantis) August 11, 2026
DeSantis paired the praise with a caveat that has followed autonomous vehicles since the category existed. “You don’t want to be in an autonomous vehicle and it drives you into a ditch. That would not be good,” he said, framing safety validation as the gate before wider deployment.
SunTrax, the 2.25 mile oval which the state calls the only high speed autonomous vehicle test track in the Southeast, can simulate rain, pedestrian crossings, hills and crowded urban conditions at highway speeds, letting companies push a car past what an early public rollout would risk. Tesla, Waymo and Beep all use the facility, and Florida’s regulatory approach, among the most permissive for autonomous vehicles in the country, doesn’t require a human operator inside a fully autonomous car.
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Tesla has reason to want the blessing of Florida and states beyond, as the Cybercab entered volume production at Gigafactory Texas this spring and has since self certified as SAE Level 4 under Texas law. Public road testing so far has kept a safety monitor in the passenger seat, and Florida is where Tesla has been expanding its existing Model Y based Robotaxi service instead, adding Miami in July and then Orlando and Tampa two weeks later. A closed track endorsement from a sitting governor doesn’t change any of that, but it does put Tesla’s newest hardware in front of a state that has already shown it will move fast on rules.
Sweden’s IF Metall union has announced that it is ending all protests against Tesla, effective immediately.
The union said in a statement this morning:
“There seems to be no limits to the length Tesla would go to keep unions out of their operations. Unfortunately, they have managed to pay their way out in Sweden. At least that has given the former IF Metall members more money in their pocket, but the insecurity of not having a union or a collective agreement still remains.”
IF Metall has been after Tesla in Sweden for the past three years, attempting to push unionized operations into its factories. Tesla, on the other hand, has given its employees the chance to unionize in various markets. However, the organization says that Tesla has “bought out all of its striking members.”
🚨 NEW: IF Metall has decided to end all industrial action against Tesla in Sweden, effective immediately.
“IF Metall has decided to end all industrial action against Tesla’s Swedish operations, after the company bought out all of its striking members. With no members remaining… pic.twitter.com/blne8iC6hV
— TESLARATI (@Teslarati) August 13, 2026
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“Today, we end our industrial action against Tesla. We do so because it can no longer have an effect – not because our principles have changed,” a written statement said.
Over the past three years, IF Metall has definitely been a thorn in the side of Tesla and its operations in Sweden. The primary strike started in October 2023, when IF Metall members at Tesla’s Swedish Service Centers refused to work.
IF Metall chair to Elon Musk: “Give us a chance” as Tesla Sweden strike hits 2 years
Strikes extended to blockades and work stoppages at non-Tesla-owned repair shops that service Teslas. This limited and stopped anything related to warranties, transport damage, and other work on Teslas ending, eliminating work arounds for customers.
Sympathy strikes followed, as postal workers, dock workers, electricians, and other tradesmen stopped working. Add in lawsuits and other pressures, and you get the full scope of what strategies the union has used against Tesla over the past several years.
But now, it’s all over.
“We will continue to defend the right of workers to organize. We will continue to fight for collective bargaining. And we will continue to stand in solidarity with workers and trade unions facing similar challenges elsewhere – just as you have stood with us,” IF Metall said.
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Elon Musk teases Tesla Roadster unveiling once again
Tesla’s driverless Cybercab just passed a big test with State Governor
