24 Apr 2024

Tesla Terminates Entirely New US "Growth Team" Established Only 4 Months Prior

Tesla has dissolved a freshly established marketing team as part of company-wide layoffs, reversing its stance on traditional advertising that CEO Elon Musk had approved less than a year ago. 

The complete removal of the US "growth content" team, consisting of approximately 40 members overseen by senior manager Alex Ingram, occurred amidst the ongoing job reductions.

Both Ingram and Jorge Milburn, who led the global team, were relieved of their duties, said sources. Nevertheless, the company retains a small contingent of marketing personnel in Europe.

Additionally, there were significant layoffs in Tesla's design studio and its staff based in Hawthorne, California, according to anonymous sources familiar with the matter.

In response to Bloomberg's report, Elon Musk commented on the content team's efforts on X, stating, "The ads were far too generic - could've been any car."

Retreat from Tesla's emerging advertising initiatives

These cutbacks signify a retreat from Tesla's emerging advertising endeavors. Historically, the automaker refrained from employing television, radio, print, or online advertisements, relying heavily on word-of-mouth to build its brand. However, Musk announced last year that Tesla would "try a little advertising and see how it goes."

Ingram commenced the formation of the growth team approximately four months ago.

Investors have urged Musk to prioritize marketing efforts

As global EV sales growth decelerates and competition intensifies, investors have increasingly urged Musk to prioritize marketing efforts. Tesla's foray into advertising has coincided with Musk's acquisition of the company formerly known as Twitter.

20,000 positions could be eliminated

The disbandment of Tesla's growth team underscores the far-reaching effects of the company's largest-ever job cuts, with Musk indicating last week that it would impact over 10% of the global workforce. Bloomberg's recent report suggested that the CEO is advocating for a 20% reduction, potentially resulting in the elimination of over 20,000 positions.

Tesla's shares dropped by 3% at 12:20 pm on Monday in New York. The stock has experienced a decline of more than 40% this year, ranking it as the second-worst performer in the S&P 500 Index.

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