A senior IT executive, Raj Jegannathan, is now leading the sales team at Tesla Inc. (NASDAQ:TSLA) as the company faces a downturn in sales.
What Happened: Jegannathan, who has been with Tesla for 13 years, recently assumed the role, which was previously held by Troy Jones, the top sales executive in North America until his departure earlier this month, according to a Reuters report.
According to sources, Jegannathan, who lacks traditional sales experience, has become closer to CEO Elon Musk. His LinkedIn profile and sources confirm his background in IT and data functions.
Tesla’s sales have plummeted, with a 13% drop last quarter, marking the weakest performance in nearly three years. The decline is attributed to backlash against Musk’s politics, an aging vehicle lineup, and increased competition.
Jones, who managed the fallout from Musk’s political affiliations, is among several high-level departures at Tesla. Other recent exits include Omead Afshar, Milan Kovac, Vineet Mehta, and David Lau. Jegannathan’s responsibilities have expanded, including overseeing vehicle-service operations and contributing to Tesla’s data centre efforts in Texas.
Why It Matters: The leadership changes at Tesla come amid a challenging period for the electric vehicle giant. The departure of Troy Jones marks another significant exit as Tesla grapples with a steep decline in sales. Jones, who served as vice president of sales, service, and delivery in Tesla’s largest market, left after a 15-year tenure.
Elon Musk has taken a more hands-on approach by overseeing sales in the U.S. and Europe following Omead Afshar’s exit.
Gary Black, managing director at Future Fund LLC, commented on June 27 that Tesla’s Q2 sales were underperforming, highlighting the urgency for Tesla to address its sales strategy amid these executive changes.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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