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It’s clear, Tesla needs a COO and it can’t come soon enough

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Tesla’s stock price has fallen nearly 24% in the last month, with the majority of the decline occurring this week. The drastic change isn’t really attributable to a single factor. The company is under pressure across the board, from Model 3 production, Solar Roof delays, concerns of a cash crunch, and delays in Autopilot’s Full Self-Driving capability. While there isn’t one solution to solve all of Tesla’s growing pains, hiring a Chief Operating Officer could help bring some operational stability to the company while curbing any overpromises made to customers and investors.

Elon Musk has been the CEO of Tesla for the past 9.5 years, and with a newly approved multi-billion dollar compensation plan, signs point to Musk taking the reins for at least another 10 years. However, Musk isn’t committing solely to Tesla as he’s also the CEO and CTO of SpaceX, CEO of Neuralink, CEO of The Boring Company, and one can argue that he’s also a full-time Twitter persona.

In his other companies outside of Tesla, Musk has a key executive running the business operations. President and COO Gwynne Shotwell joined SpaceX as the 11th employee in 2002 and has turned Musk’s passion for Space into a business with over $12 billion in order contracts.

Although Tesla has nearly six times more employees than SpaceX, the young space company operates efficiently and akin to a well-oiled machine, according to employees working at SpaceX. Yet, at the same time, Tesla has seen high executive turnover, as Musk holds tight control of the company’s day-to-day management.

Tesla’s need for a “Shotwell Equivalent” is more apparent than ever and for these key reasons:

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  • Model 3 Production: Bloomberg’s Model 3 production tracker shows that they are below 50% of their end of March production rate target. Musk should have never increased production targets on the vehicle and needed to be far more conservative with his estimates.
  • Continuous delays with Autopilot technology: After ditching Mobileye’s technology in autopilot systems 21 months ago, Tesla’s development of the technology has slowed significantly. Musk first said that a Tesla would be able to drive coast-to-coast autonomously by the end of 2017, that has now been moved to mid-2018.
  • Need to capitalize on Model S and Model X. Tesla has built a high-margin business out of their Model S and Model X vehicles. At current production rates, the company can generate $2.5 billion in free cash flow from those two vehicles alone. Tesla should use strategic marketing to boost demand for the vehicles, allowing the company to bring in more high-margin revenue.
  • Acquisition of SolarCity: Tesla’s acquisition of solar installation company, SolarCity, has failed to provide meaningful value to shareholders. From the outside, it appears as though Tesla’s management team doesn’t have the bandwidth or cash to grow the Solar division. Both of Musk’s cousins Peter and Lyndon Rive have left Tesla after the acquisition to “focus on other projects”.

It would be foolish to think that a COO would solve all of the company’s issues, but having a dedicated executive to manage day-to-day operations could certainly help in preventing executive turnover while keeping employees focused on Tesla’s core mission: to accelerate the world’s transition to sustainable energy.

Who could be Tesla’s new Chief Operating Officer?

I’ve prepared a shortlist of executives that could potentially land themselves as Tesla’s first COO.

1. Mike Sievert (COO of T-Mobile US)

While Sievert doesn’t have automotive experience, he does bring strong experience managing a large employee base and has worked in the technology sector for the past 25 years. Sievert joined T-Mobile in late 2012 as CMO and became COO in 2015. Since joining T-Mobile, Sievert has been crucial to the company’s successful turnaround. And to boot, Sievert has experience working with outspoken CEOs who also moonlight as a Twitter personality.

2. Julia Steyn (VP Urban Mobility at General Motors and CEO of Maven)

Steyn joined General Motors in 2012 as VP of Merger and Acquisitions and became the VP of Urban Mobility and CEO of GM’s Maven division in late 2015. She has led the company’s initiative into car-sharing with the Maven division and has played a key role in GM’s moves into autonomous vehicles. Prior to joining GM, Steyn was VP at Alcoa, one of the world’s largest aluminum suppliers. She also spent 7.5 years at Goldman Sachs as VP of the Global Natural Resources Group in the Investment Banking division.

 

3. Alicia Boler Davis (EVP, Global Manufacturing and Labor Relations, General Motors)

Boler Davis has spent the last 24 years at General Motors in a variety of capacities and became EVP of Global Manufacturing and Labor Relations in 2016. She oversees over 150,000 employees in the manufacturing division of GM across 150 different facilities. Prior to her current role, she was SVP of Global Connected Customer Experience where she played a role, like Julia Steyn, in GM’s expansion into car-sharing and autonomous vehicles. Her extensive engineering and managerial experience at GM could bring more order and stability as the company plans to expand production across the globe.

Obviously, this list isn’t comprehensive but should provide a starting point for potential hires. Who do you think should be hired as the first Chief Operating Officer at Tesla?

This column does not necessarily reflect the opinion of Teslarati and its owners. Christian Prenzler does not have a position in Tesla Inc. and does not have plans to do so in the next 72 hours. 
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Christian Prenzler is currently the VP of Business Development at Teslarati, leading strategic partnerships, content development, email newsletters, and subscription programs. Additionally, Christian thoroughly enjoys investigating pivotal moments in the emerging mobility sector and sharing these stories with Teslarati's readers. He has been closely following and writing on Tesla and disruptive technology for over seven years. You can contact Christian here: christian@teslarati.com

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Investor's Corner

Tesla welcomes Chipotle President Jack Hartung to its Board of Directors

Tesla announced the addition of its new director in a post on social media platform X.

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Credit: @ArthurFromX/X

Tesla has welcomed Chipotle president Jack Hartung to its Board of Directors. Hartung will officially start his tenure at the electric vehicle maker on June 1, 2025.

Tesla announced the addition of its new director in a post on social media platform X.

Jack Hartung’s Role

With Hartung’s addition, the Tesla Board will now have nine members. It’s been a while since the company added a new director. Prior to Hartung, the last addition to the Tesla Board was Airbnb co-founder Joe Gebbia back in 2022. As noted in a Reuters report, Hartung will serve on the Tesla Board’s audit committee. He will also retire from his position as president and chief strategy officer at Chipotle, and transition into a senior advisor’s role at the restaurant chain, next month.

Hartung has had a long career in the Mexican grill, joining Chipotle in 2002. He held several positions in the company, most recently serving as Chipotle’s President and Chief Strategy Officer. Tesla highlighted Hartung’s accomplishments in a post on its official account on X.

“Over the past 20+ years under Jack’s financial leadership, Chipotle has seen significant growth with over 3,700 restaurants today across the United States, Canada, the United Kingdom, France, Germany, Kuwait and the United Arab Emirates. Jack was named ‘CFO of the Year’ by Orange County Business Journal and Best CFO in the restaurant category by Institutional Investor,” Tesla wrote in its post on X.

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Tesla Board and Musk

Tesla is a controversial company with a controversial CEO, so it is no surprise that the Board of Directors tend to get flak as well. Two weeks ago, for example, Tesla Board Chair Robyn Denholm slammed The Wall Street Journal for publishing an article alleging that company directors had considered a search for a potential successor to Elon Musk. Denholm herself has also been criticized for offloading her TSLA shares.

More recently, news emerged suggesting that the Tesla Board of Directors had formed a special committee aimed at exploring a new pay package for CEO Elon Musk. The committee is reportedly comprised of Tesla board Chair Robyn Denholm and independent director Kathleen Wilson-Thompson, and they would be exploring alternative compensation methods for Musk’s contributions to the company.

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Rivian stock rises as analysts boost price targets post Q1 earnings

Rivian impressed with smaller-than-expected losses & strong revenue, pushing analysts to raise price targets.

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(Credit: Rivian)

Rivian stock is gaining traction as Wall Street analysts raise price targets following the electric vehicle (EV) maker’s first-quarter earnings report. Despite a dip after the announcement, optimism surrounds Rivian’s cost control and upcoming lower-priced cars.

Last week, Rivian reported a better-than-expected Q1 gross profit, surpassing Wall Street’s forecasts with adjusted losses of $0.48 per share against expectations of $0.92 per share. The company also reported a revenue of $1.24 billion compared to the $1.01 billion anticipated.

However, the EV automaker cut its 2025 delivery forecast and capital spending due to President Donald Trump’s tariffs. It explained that it is “not immune to the impacts of the global trade and economic environment.” RIVN stock dropped nearly 6% post-earnings, closing at $12.72 per share.

Wall Street remains upbeat about Rivian, citing progress toward launching lower-priced vehicles in 2026 and effective cost management. On Monday, Stifel analyst Stephen Gengaro raised his RIVN price target to $18 from $16, maintaining a “Buy” rating. He highlighted Rivian’s “solid progress” toward key milestones.

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Conversely, Bernstein’s Daniel Roeska gave RIVN a “Sell” rating. However, Roeska also lifted his Rivian price target to $7.05 from $6.10, acknowledging “better” Q1 results. He warned that profitability remains distant and hinges on multiple product launches by the decade’s end.

Overall, Wall Street’s average price target for RIVN climbed from $14.18 to $14.31, a modest 13-cent increase reflecting positive sentiment. About one-third of analysts covering Rivian rate it a Buy, compared to the S&P 500’s average Buy-rating ratio of 55%.

On Monday, Rivian stock rose 2.7% to $14.64, slightly trailing the S&P 500 and Dow Jones Industrial Average, which gained 3.3% and 2.8%, respectively. The uptick may also stem from broader market gains tied to news of a temporary U.S.-China tariff suspension.

As Rivian navigates trade challenges and scales production at its Illinois factory, its Q1 performance and analyst support signal resilience. With lower-priced EVs on the horizon, Rivian’s strategic moves could bolster its position in the competitive EV market, offering investors cautious optimism for long-term growth.

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Investor's Corner

Tesla (TSLA) poised to hit $1 trillion valuation again amid reports of Trump China deal

TSLA stock was up about 8% at $322.56 per share on Monday’s premarket.

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tesla-model-y-giga-texas-logo
(Credit: Tesla)

Tesla shares (NASDAQ:TSLA) are on a tear on Monday’s premarket amidst reports that the United States and China have agreed to significantly roll back tariffs on each other’s goods for an initial 90-day period.

As of writing, the premarket price of TSLA shares suggests that the electric vehicle maker might end Monday with a $1 trillion valuation once more.

Tesla and China

TSLA stock was up about 8% at $322.56 per share on Monday’s premarket. As noted in a report from Barron’s, these prices suggest that the company could achieve a trillion-dollar valuation again, a level not seen since late February. Similar to Tesla, the S&P 500 and the Dow Jones Industrial Average were also up 2.8% and 2.1%, respectively, on Monday’s premarket.

The United States and China’s decision to roll back its tariffs would likely be appreciated by CEO Elon Musk. Despite working for the Trump administration’s Department of Government Efficiency (DOGE), and despite Tesla being least affected by the Trump administration’s tariffs due to its strong domestic supply chains in the United States, China, and Europe, Musk has noted that he is a supporter of non-predatory tariffs.

The United States and China’s Agreement

In a joint statement from the United States and China posted on the White House’s official website, the two countries agreed to lower reciprocal tariffs on each other by 115% for 90 days. This means that the United States will temporarily lower its overall tariffs on Chinese goods from 145% to 30%, as noted in an ABC 12 report. China, on the other hand, will also lower its tariffs on American goods from 125% to 10%.

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The talks were led by Chinese Vice Premier He Lifeng and Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer, as per the joint statement. Bessent shared his thoughts about the matter in a comment in Geneva. “The consensus from both delegations is neither side wants to be decoupled, and what have occurred with these very high tariffs … was an equivalent of an embargo, and neither side wants that. We do want trade. We want more balance in trade. And I think both sides are committed to achieving that,” he said. 

A spokesperson from China’s Commerce Ministry also shared a statement about the matter. As per the spokesperson, the deal was an “important step by both sides to resolve differences through equal-footing dialogue and consultation, laying the groundwork and creating conditions for further bridging gaps and deepening cooperation.”

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