Tesla Inc shares saw a notable increase of 3.6% on Monday, a movement that followed the announcement that the executive leading the firm’s high-profile Cybertruck programme would be leaving the company.
Siddhant Awasthi, the programme manager for both the Cybertruck and the established Model 3, confirmed his departure on LinkedIn, stating the decision was a difficult one after eight years with the company.
Who is Siddhant Awasthi?
Awasthi’s LinkedIn profile details his rise from an intern to overseeing the Cybertruck programme from the engineering phase through to large-scale production. His tenure involved managing product strategy, quality improvements, and supply chain logistics.
Reflecting on his career, Awasthi noted his involvement in key projects, including the “ramping up” of the Model 3, work at Giga Shanghai, the development of new electronics architectures, and the delivery of the Cybertruck, all before he reached the age of 30. He also assumed leadership of the Model 3 programme in July.
Awasthi offered no immediate details on his next career move.
Cybertrucks recalled in US over multiple safety-related issues
Awasthi’s departure coincides with continued scrutiny of the Cybertruck, which has faced multiple safety-related issues in the US market.
Last month, Tesla announced a recall of over 63,000 Cybertrucks in the United States. The action was due to overly bright front lights, which regulatory bodies deemed a distraction to other motorists, thus increasing the risk of a collision.
Earlier in March, US safety regulators — specifically the National Highway Traffic Safety Administration (NHTSA) — recalled virtually every Cybertruck then on the road, affecting more than 46,000 vehicles. The warning focused on an exterior panel running along the windscreen that could become detached while driving, posing a significant road hazard.
Tesla profit drops, revenues rise
The positive stock movement on Monday comes despite the carmaker reporting a fourth consecutive quarterly decline in profit in October, even as overall revenues increased. Third-quarter earnings plunged by 37% year-on-year to $1.4 billion, or 39 cents per share, down from $2.2 billion, or 62 cents per share, the previous year.
The revenue increase was attributed to customers in the US rushing to purchase vehicles before a federal electric vehicle (EV) tax credit of $7,500 expired on 1 October, suggesting sales may have been “pulled forward” from the subsequent quarter.
Last week, Tesla Chief Executive Elon Musk secured a landslide shareholder vote approving a compensation package that could see him receive stock worth up to $1 trillion if he achieves specific performance goals over the coming decade. More than 75% of voters backed the plan at the annual general meeting held in Austin, Texas.
