Tesla loses two key execs as Model 3 launch looms

Bloomberg reports that two of Tesla’s top executives are leaving the company, allegedly over production issues with the Model X. Global head of production Greg Reichow and Manufacturing chief Josh Ensign are both resigning. Tesla confirmed their departures but claimed it has nothing to do with the electric SUV.

“This is not about the Model X,” a Tesla spokesperson said. “After being at Tesla for over five years and leading its production team for the past three years, Greg Reichow has announced his intention to take a leave of absence from Tesla so that he can have a well-earned break.”

However, an anonymous insider tells Bloomberg that the departures are directly linked to issues with the Model X. The SUV was initially delayed by over 18 months. Once it finally hit the market early customers quickly began reporting issues with the falcon-wing doors and various other features. Tesla was also forced to recall 2,700 cars due to an issue with the rear seat.

CEO Elon Musk has already publicly apologized for issues with the Model X. He blamed the delays on “hubris,” saying the company simply tried to pack in too many awesome features. Recently production has picked up, but it’s unclear if the Model 3 will face similar problems.

Tesla racked up an unprecedented 400,000 pre-orders for the $35,000 electric vehicle. Even with a full executive team that’s a huge challenge. Without two of its top seasoned executives it could prove even more difficult to pull off.