EV maker Tesla (TSLA) is making big changes to its leadership team as it deals with falling car sales. Indeed, Raj Jegannathan, a longtime executive in Tesla’s IT and data departments, has taken over the company’s sales team, according to Reuters, which cited people familiar with the situation. Many within Tesla believe that he is stepping into the role previously held by Troy Jones, the top sales executive in North America, who left earlier this month after 15 years with the company.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
While Jegannathan has recently become closer to CEO Elon Musk, he has no background in sales, and it is unclear if this is a temporary or permanent position. Interestingly, he has worked at Tesla for 13 years, starting in 2012 as a senior engineer focused on internet traffic and cloud security, according to his LinkedIn page. Jegannathan has since helped develop Tesla’s data centers in Texas, while climbing the ranks to become Vice President of IT, AI Infrastructure, Applications, and Cybersecurity. More recently, he has also taken over the company’s vehicle service operations.
It is no secret that Tesla’s sales have dropped sharply, especially in North America and Europe. Last quarter, sales fell by 13%, which was the weakest performance in nearly three years. The decline has been blamed on several factors, such as backlash over Musk’s political alignment with President Trump, as well as aging vehicle models and increased competition from rivals. Nevertheless, before his departure, Jones urged Tesla managers to keep focusing on selling vehicles and downplayed the political concerns, according to someone who heard him speak.
What Is the Prediction for Tesla Stock?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 13 Buys, 13 Holds, and eight Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average TSLA price target of $298.97 per share implies 9.3% downside risk.
