Two production heads leave Tesla amid bold growth aspirations image

The top manufacturing executives are stepping aside just before Tesla prepares to start the production of its crucial new car, the Model 3.

Tesla is losing two executives in charge of one of the most crucial tasks for a carmaker, namely production, an area in which the Silicon Valley electric-car maker lately had serious issues. The company confirmed that its vice president of output, Greg Reichow, and Josh Ensign, vice president of manufacturing, would leave just before the Model 3 prepared to hit the market. Even if Reichow “has announced his intention to take a leave of absence from Tesla so that he can have a well-earned break,” some sources revealed to Bloomberg that his departure was linked to the countless problems Model X SUV went through, from delays to quality glitches.

“This is not about the Model X,” said a Tesla spokesperson. “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,” Chief Executive Officer Elon Musk told to Bloomberg. “We’re confident that with the strength of the team, high-quality manufacturing at Tesla will continue.”

These moves come exactly when Tesla has set some bold targets for the future. As the automaker announced its first-quarter financial results, it also said it planned to produce 500,000 cars by 2018, two years ahead of the previously set schedule and almost ten times more than it built last year. In order to hit this overambitious goal, Tesla has to make sure that it can cope with the hype created around the 35,000 dollars mass-market electric Model 3. And with so many uncertainties, there are definitely big production challenges ahead for the company.

Via Bloomberg