Tesla Suffers Huge Blow: Chief Tech Officer Steps Down, Takes Up Advisory Role

Electric car maker Tesla’s Chief Technology Officer and co-founder JB Straubel is leaving the company and his future role will be that of a senior advisor.

This was announced by CEO Elon Musk while releasing the company’s second-quarter earnings on Thursday.

According to Musk, Drew Baglino, currently vice president, technology will replace Straubel.

The CEO confirmed Straubel to be a “senior advisor.”

“I’m excited to stay involved in some of our core technologies and all that and help where I can,” Straubel said on the call but added the advisory role will not be an executive position.

Straubel is one of the co-founders of Tesla and credited for Tesla’s signature battery technology. He was in charge of Tesla’s power electronics, software, motors, firmware and controls during the tenure.

Straubel said his exit does not indicate any lack of confidence in Tesla’s future and his involvement in the development of core technologies at Tesla will continue.

“I’m not disappearing ...,” Straubel said and added that he loved the team and the company and “I always will.”

Speculation is rife that the outgoing CTO wanted to focus on his startup covering mysterious material recycling that he founded a few years ago.

Hailing Straubel’s contribution to Tesla, Musk said: “I’d like to thank JB for his fundamental role in creating and enabling Tesla. If we hadn’t had lunch in 2003, Tesla wouldn’t even exist.”

Analysts think that the Straubel’s engineering leadership will be missed at Tesla.

Straubel also founded a recycling company named Redwood Materials which has offices near Tesla’s Gigafactory in Nevada and Fremont car plant.

An exodus of high profile executives

The exodus of experienced hands from Tesla is hard to miss. Straubel now joins the crowd of other high-profile talents that left Tesla in recent months.

Steve McManus, Tesla’s vice president for engineering and car interiors joined Apple quite recently.

Before that former Tesla vice president, Michael Schwekutsch in charge of electric power trains joined Apple’s Special Projects Group. In June, Felicia Mayo, the vice president of human resources left Tesla.

Peter Hochholdinger, heading manufacturing at the Fremont factory was another important Tesla official to leave. He joined Lucid Motors.

Ironically the CTO’s departure coincided with Tesla’s weaker earnings report.

In January this year, Musk, in a similar fashion, announced the departure of Deepak Ahuja as a chief financial officer at a conference that discussed the fourth-quarter results.

Ahuja was replaced with Zachary Kirckhorn, Tesla’s vice president of finance.

Meanwhile, the diminished revenue and a bigger loss pulled down Tesla stock 10 percent in extended trading.