The shares Tesla Motors Inc. (NASDAQ:TSLA) are trading lower on Wednesday due to the report that two of its top manufacturing executives are leaving.
The stock price of the electric car manufacturer declined more than 4% to $22.20 per share at the time of this writing around 2:34 in the afternoon in New York.
According to Bloomberg, the electric car manufacturer confirmed the departures of Greg Reichow, vice president of production and Josh Ensign, vice president of manufacturing. The company’s spokesperson said Reichow will remain in his position until his successor is appointed to ensure a smooth transition of responsibilities and prevent any interruption in production.
Ensign and Reichow’s departure comes as the company is trying to accelerate its production of the Model X SUV and prepare the launching of the Model 3, its mass market electric car.
Tesla said departures not related to Model X delays
A person familiar with the situation suggested to Bloomberg that the departures of the executives were connected to the Model X delays, glitches, and recalls. The spokesperson for Tesla denied such notion.
“This is not about the Model X. After being at Tesla for over five years and leading its production team for the past three years, Greg Reichow has announced his intention to take a leave of absence from Tesla so that he can have a well-earned break,” according to the company’s spokesperson.
Tesla CEO Elon Musk took responsibility for the Model X delays, which was primarily due to engineering “hubris.”
“The mistake we made with the Model X, which I really think we have taken to heart at Tesla, is that we put too many new features and technologies, too many great things all at once into a product,” said Musk.
High-quality manufacturing will continue
In an e-mail sent to Bloomberg, Musk, said, “Greg and the team deserve a lot of credit for building an all-new manufacturing organization from the ground up and for making Model S and Model X a reality.”
We’re confident that with the strength of the team, high-quality manufacturing at Tesla will continue,” added Musk.
On the other hand, Reichow said, “My belief in Tesla’s ability to successfully deliver great cars and inspire the world to drive electric remains as strong as ever.”
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