- Two financial executives have left Tesla in less than a week.
- The stock is down more than 3% Wednesday as the company’s shareholder meeting approaches.
- The stock slid further after CNBC reported the company was having a problem with flawed parts.
- You can follow the stock in real-time here>>
Shares of Tesla sank as much as 2% Wednesday morning following a report that a second financial executive is leaving the electric car company in less than a week.
Tesla’s VP of Finance, Susan Repo, has left to become CFO of another company, Bloomberg News’ Dana Hull reported late Tuesday. The departure comes less than a week after Tesla’s chief accountant Eric Branderiz left the company for “personal reasons,” the company disclosed on March 7.
A slew of departures in the last 12 months have left Tesla in a turbulent position on Wall Street. Even longtime bull Adam Jonas of Morgan Stanley has toned down his stance, saying there are “risks bubbling below the surface.“
Tesla continued to slide Wednesday afternoon after CNBC reported that the company was “churning out a high volume of flawed parts requiring costly rework” at its Fremont, California plant. One engineer told CNBC that up to “40% of the parts made or received at its Fremont factory require rework.”
Tesla is expected to give a production update in early April on its first mass-market sedan, the Model 3, which has faced numerous delays and interruptions in recent months. Most recently, the company disclosed that it had to temporarily suspend Model 3 factory lines in February to “improve automation” and “increase production rates.”
The car maker has a history of missing delivery expectations by a wide margin.
A meeting of Tesla shareholders is scheduled for March 21st. Ahead of the meeting, investors will vote to approve CEO Elon Musk’s performance award, something the board recommends.
Musk has said he won’t take his $2.62 billion pay package — one that could be worth up to $55.8 billion — unless the company reaches a market cap of $650 billion, more than 10 times its current market cap of $58 billion. Influential proxy firm Glass Lewis is advising investors to vote against the plan, saying the cost is “staggering.” Based on its own models, Glass Lewis says Musk’s performance award should be valued at company at $3.7 billion.
Shares of Tesla are up 5.4% this year.