Tesla reorganization comes as top executives depart automaker

Tesla CEO Elon Musk defends company in combative earnings call

Elon Musk told Tesla workers on Monday the electric car company is "flattening" its management structure as part of a "thorough reorganization." 

The update from the boss comes amid a rash of executive departures from Tesla and as the company struggles to meet production targets for its Model 3 sedans.

A spokesperson for Tesla confirmed the memo from Musk, which read: 

"To ensure that Tesla is well prepared for the future, we have been undertaking a thorough reorganization of our company. As part of the reorg, we are flattening the management structure to improve communication, combining functions where sensible and trimming activities that are not vital to the success of our mission.

To be clear, we will continue to hire rapidly in critical hourly and salaried positions to support the Model 3 production ramp and future product development."

Tesla CEO Elon Musk calls Model 3 assembly line "'Westworld' for cars"

Top execs to leave in recent months include Matthew Schwall, Tesla's main conduit with government regulators, who recently joined Google's self-driving car company, Waymo. 

Jim Keller, who led Tesla's Autopilot driver-assistance system, departed for Intel in April. Sales chief Jon McNeill left for Lyft in February.

Doug Field, a senior vice president of engineering who until recently ran Model 3 production, is taking time off to spend more time with his family but remains with the company, Tesla told CNET earlier this month.

Tesla shares were down nearly 2 percent on Monday afternoon, trading just above $296. 

Musk signaled in a recent conference call that changes would come to shore up Tesla's finances. 

"We are going to conduct sort of a reorganization, restructuring of the company in the next -- this month -- and make sure we're well set up to achieve that goal," he said, referring to a target of Tesla reaching positive cash flow in the third quarter.

The company earlier this month reported its largest-ever quarterly loss, results that Musk followed up on with an unusual conference call with stock analysts, in which he lashed out against "boring, bonehead" questions. 

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