Tesla (TSLA) stock dropped today on a report that its top sales executive in North America, Troy Jones, has left the company.
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The Wall Street Journal reported that Jones had become the latest senior departure at the bedraggled business.
The vice president of sales, service and delivery in North America – Tesla’s biggest market – Jones has been with the company for 15 years.
Series of Departures
The EV maker, led by chief executive Elon Musk, has seen a number of recent departures since early last year. That includes key figures like Musk’s confidant, Omead Afshar, chief battery engineer Drew Baglino and global public policy head Rohan Patel.
The head of Tesla’s Optimus humanoid robot team, Milan Kovac, announced he was leaving in June, and top battery executive Vineet Mehta did so in May.
Their departures, along with others in legal and supply chain leadership, have raised questions about internal stability at the company as it navigates a sales slump and a shift to robotics and self-driving technology.
Indeed, corporate governance is one of the clear risks investors need to be aware of.
The group, whose stock price has slumped 22% since the start of the year, has also been plagued by falling sales and criticism over its dull designs compared to rivals such as China’s BYD (BYDDY).
Battered Business
It has also been battered by the on and then off political relationship between Musk and President Trump. His role as head of the Department of Government Efficiency dented the brand’s reputation with certain customers, with investors worried about the amount of time he spent away from the day job of running Tesla.
There were also concerns about Musk’s often erratic behavior in the Oval Office.
When he left his government role, it was hoped that the Tesla focus would return, but he is now intent on setting up his own political party to rival Trump.
Perhaps it will be Musk who is the next to leave the driving seat with some rumblings that perhaps it is time for a new Tesla leader to step forward.
Is TSLA a Good Stock to Buy Now?
On TipRanks, TSLA has a Hold consensus based on 13 Buy, 13 Hold and 9 Sell ratings. Its highest price target is $500. TSLA stock’s consensus price target is $293.38, implying a 6.52% downside.
