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Tesla Needs A COO

May 07, 2018 3:22 PM ETTesla, Inc. (TSLA)182 Comments
Donn Bailey profile picture
Donn Bailey


  • Elon Musk needs to have the heavy lifting taken off of his shoulders.
  • The latest announced shakeup coming May 7 to the contractors and subcontractors around the globe will only add to the chaos at Fremont and the Gigafactory.
  • Managers are being asked to personally vouch for every contractor and subcontractor in use, potentially putting their own necks in a noose.

A company in Chaos

Recent behavior, tweets, emails, and phone calls were not enough damage to the brand costing investors $billions in just the last week. Elon Musk, CEO of Tesla, Inc (NASDAQ:TSLA) has apparently decided to ramp up the pressure even more with an email to employees detailed Sunday night in an article on the Electrek.co website.

Tesla, under Musk's orders, will begin barring contractors, subcontractors and presumably their employees from entering any Tesla facility on Monday, May 7th unless each individual person has been personally vetted by an actual Tesla employee. Details from the Electrek article repeat Musk's comments from the CC last week and go on to detail the latest employee email from Musk that appears to have gone out to employees last week:

Please note my comment below about contractor companies and consultants. I extended the performance evaluation deadline to provide more opportunity to demonstrate excellence, but now time is up.

Please send a note to HR before Monday justifying the excellence, necessity and trustworthiness by individual (not just the contractor company as a whole) of every non-Tesla person who has badge access to our buildings or network access to our systems.

By default, anyone who does not have a Tesla employee putting their reputation on the line for them will be denied access to our facilities and networks on Monday morning. This applies worldwide.

Time to scrub off the barnacles.

Thanks, Elon

(emphasis by the author)

From what we already know many of the people manning the productions lines are not actual Tesla employees but hired hands through subcontractor employment centers. Many are recent hires. Who knows if any of them have actual daily contact with a Tesla employee or manager who brokered their company's employment contract.

Elon Musk is repeating a common mistake

ChartTSLA Revenue (Quarterly) data by YCharts

This article was written by

Donn Bailey profile picture
Donn is Co-Manager of his family-controlled investment portfolio of mortgages, real estate, and publicly traded stocks. Donn grew up in Mexico and Ecuador before moving to the U.S. for college. He holds a Bachelor's degree in Business Management. He spent a decade in the aerospace industry before his passion for cars took him to GM and Ford dealerships. An avid ocean fisherman, he "semi-retired" to Florida in 2015. Never idle, he stays busy now as a licensed realtor and author on the real estate and auto industries.

Analyst’s Disclosure: I am/we are short TSLA VIA OPTIONS. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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