The Conversation (2)
Two of Tesla Motors’ key executives are leaving the company ahead of the release of Tesla’s Model 3. The company saw its share price drop four percent on the news on Tuesday, and was trading around $222.75 as of 2:42 p.m. EST.
Two of Tesla Motors’ (NASDAQ:TSLA) key executives are leaving the company ahead of the release of Tesla’s Model 3.
Tesla VP of Production, Greg Reichow, and VP of manufacturing, Josh Ensign, will depart from the company, as per Bloomberg. A Tesla spokesperson told the news outlet that Reichow will remain on board until a replacement is found.
Tesla saw its share price drop four percent on the news on Tuesday, and was trading around $222.75 as of 2:42 p.m. EST. The electric vehicle maker has seen its share price climb back approximately 26 percent from hitting a 2016 low of $143.67 in February.
“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,” Tesla CEO Elon Musk stated in an email to Bloomberg. “We’re confident that with the strength of the team, high-quality manufacturing at Tesla will continue.”
Tesla has been center stage in the minds of many lithium investors as the company is currently constructing a lithium-ion battery gigafactory in Nevada. While Tesla is far from the only player in terms of lithium end-users, demand from the battery space is rising, and the high-profile electric vehicle maker has captured the attention of those interested in investing in lithium, graphite and cobalt.
Critical metals analysts and market watchers, such as Chris Berry of House Mountain Partners and the Disruptive Discoveries Journal, have already been reacting to the news on Twitter:
Ugh….. https://t.co/DuJLpUJIC8
— Chris Berry (@cberry1) May 4, 2016
Simon Moores of Benchmark Mineral Intelligence also commented on the news:
Are Elon Musk’s challenges going too far? Two Tesla Production Bosses quit and important Gigafactory supply manager leaves all in last 3 wks
— Simon Moores (@sdmoores) May 4, 2016
Tesla signed two conditional lithium supply agreements with junior miners last year, first with Bacanora Minerals (TSXV:BCN,LSE:BCN) and joint venture partner Rare Earth Minerals (LSE:REM), and second with Pure Energy Minerals (TSXV:PE), but there has been no further news from the company about its potential supply chain.
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Securities Disclosure: I, Teresa Matich, hold no direct investment interest in any company mentioned in this article.
