Elon Musk's Return to Wartime CEO Mode, Navigating Tesla's Leadership Shift

Elon Return to Wartime CEO

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Elon Musk liked a post on X that wrapped up a difficult day for Tesla. The post read: Elon re-enters wartime CEO mode. Musk also changed his X profile picture back to the Devil’s Champion costume he wore in 2022 for Halloween. The wartime post by Tesla insider @ChrisZheng001 comes after the company announced a major reduction to its global workforce by over 10%. This decision affects roughly 14,000 employees across various levels and departments. Musk also said goodbye to several long-term, key executives.

Musk’s Wartime Shift: A Strategic Necessity

The concept of a "wartime CEO" versus a "peacetime CEO" originates from Ben Horowitz, a renowned venture capitalist and co-founder of Andreessen Horowitz. In his book, "The Hard Thing About Hard Things: Building a Business When There Are No Easy Answers," Horowitz describes a wartime CEO as a leader who operates under conditions of extreme stress and competition, making tough, fast decisions necessary for survival. This contrasts with a peacetime CEO focusing on expansion, culture, and development during more stable periods.

About every 5 years, we need to reorganize and streamline the company for the next phase of growth

— Elon Musk (@elonmusk) April 15, 2024

Musk's recent re-adoption of the wartime CEO posture is a strategic maneuver as Tesla faces significant internal and external challenges. With the electric vehicle market becoming increasingly competitive and Tesla initiating major projects like the Robotaxi, Musk’s leadership style has aligned with these high-stakes circumstances.

Executive Departures, Overhauling Workforce

The company plans to overhaul its workforce, reducing its size by over 10 percent to eliminate redundancy and enhance productivity. Simultaneously, Tesla is pushing forward with significant technological innovations that promise to redefine its future. Such intense transformation and challenge periods necessitate a wartime approach, where decisiveness and direct action are paramount.

The layoffs coincide with the departure of several high-profile executives, including Drew Baglino, Senior Vice President of Powertrain and Energy, who had been with Tesla for 18 years, and Rohan Patel, Vice President of Public Policy and Business Development and an eight-year veteran of Tesla. Both executives have decided to leave the company to focus on personal priorities and have no immediate plans for future engagements.

The Role of a Wartime CEO at Tesla

Musk focuses sharply on navigating Tesla through these turbulent times as a wartime CEO. This includes making hard decisions on layoffs, streamlining operations, and prioritizing critical projects over others. Musk noted in his layoff announcement to staff via email.

There is nothing I hate more, but it must be done. This will enable us to be lean, innovative, and hungry for the next growth phase cycle.

However, adopting a wartime mentality may impact Tesla's corporate culture, potentially leading to a more hierarchical and less collaborative environment in the short term. Musk is also aware of that and addressed it in the same email, stating: For those remaining, I would like to thank you in advance for the difficult job that remains ahead. We are developing some of the most revolutionary technologies in auto, energy, and artificial intelligence. As we prepare the company for the next growth phase, your resolve will make a huge difference in getting us there.

Conclusion: Preparing for Tesla’s Next Big Leap

As Tesla continues under Musk’s wartime leadership, the emphasis is on rapid adaptation and the successful rollout of new technologies. The company's ability to manage these changes effectively and maintain its competitive edge in the electric vehicle market will be crucial. The ultimate goal of this wartime approach is to ensure that Tesla not only survives the current challenges but emerges stronger and more innovative, ready to lead the next phase of growth in the automotive and energy sectors.

This shift back to wartime CEO mode is a critical strategy for Musk and Tesla. It signals a period of intense focus and strategic recalibration aimed at securing Tesla’s position as a leader in the global push for sustainable transport and energy solutions.

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Tesla Disables 12V Power Sockets and USB Ports While Sentry Mode is Active in Update 2024.32

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In Tesla software update 2024.32 and onwards, Tesla has made a big—and unexpected—change to how its vehicles handle power sockets. This change impacts every vehicle except the Cybertruck, where you can already adjust how power sockets are handled on a case-by-case basis.

Power Socket Change

This change to the power sockets means that in 2024.32, Tesla vehicles will have their 12v sockets and USB ports turned off while in Sentry Mode. Previously, while the car was awake or Sentry Mode was active, the 12v sockets in the rear of the vehicle and any of the USB ports would all remain powered.

Now, owners will no longer be able to operate devices that rely on these ports once the vehicle falls asleep. This change renders some accessories almost useless, such as vehicle fridges. Owners previously relied on Sentry Mode coming on when their vehicle was parked, which kept the fridge in the vehicle’s sub-trunk powered. This change will also prevent owners from using Sentry Mode to keep USB ports powered to charge laptops and other devices.

Until further changes are made, owners will have to use Camp Mode to keep 12v sockets and USB ports powered. However, Camp Mode leaves the vehicle unlocked, making it insecure and unsuitable for things like sub-trunk fridges.

Cybertruck Power Interface

Tesla may be planning to integrate the Outlets & Accessories menu from the Cybertruck into the rest of its vehicles. The outlets menu in the Cybertruck allows you to keep the cabin (and bed) outlets in the vehicle active, even when the vehicle isn’t in use. These outlets remain powered for up to 12 hours after the Cybertruck is exited.

The Power Menu in the Cybertruck

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Sentry Mode Improvements

Drew Baglino, Tesla’s now former SVP of powertrains and energy, said back in February of this year that Tesla was looking at reducing the amount of power that Sentry Mode used. He stated that Sentry Mode power consumption needs to be improved and that the team was working on an update to reduce power by about 40%. According to Baglino, the improvements were expected to come in the second quarter of this year, but it’s not clear if this change in update 2024.32 is part of those changes that will lower Sentry Mode’s power consumption.

Even if these are planned changes, we hope Tesla makes them optional, and lets owners choose when to keep outlets powered and when to conserve energy.

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NHTSA Reveals Tesla Cybertruck Sales Number in OTA Recall Filing

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Tesla has issued an OTA recall for the Cybertruck – unsurprisingly, one that has already been fixed for customer vehicles. We’ll expand on the recall a little later, but more importantly, the recall filing revealed that Tesla has now built and sold 27,185 Foundation-Series Cybertrucks for customers.

OTA Recall

The OTA recall – which was issued in update 2024.32.5.2 and above, covered an issue that could delay the rearview camera being displayed on the dashboard.

This would occur if the Cybertruck was powered on, and then quickly shifted to reverse. The rearview camera would not come up on screen within the prescribed 2-second timeframe.

According to the NHTSA filing, Tesla has already fixed this via the OTA update, and the rearview camera will now display within that 2-second timeframe as required going forward. This was another easy OTA fix for Tesla.

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27k Cybertrucks

The filing also revealed that Tesla has produced and delivered approximately 27 thousand Foundation-Series Cybertrucks through September 14^th. Tesla has been producing the Cybertruck for approximately 11 months now, with the 12-month anniversary coming up on November 13^th.

Elon Musk previously mentioned that Tesla intends to produce approximately 375,000 trucks per year to compete with the ICE pickup market. Today, Tesla produces 1.7 million Model 3 and Model Y vehicles per year, and about 80,000 Model S and Model X vehicles a year.

Overall, that 27 thousand over a year is only the start of production, and as Tesla expands and improves its production lines, we can expect that number to continue growing at a rapid pace. With the Foundation Series ending and Tesla opening up invites for reservation holders to configure their non-FS Cybertruck, that number is only expected to increase. The non-FS Cybertruck is priced at $79,990, $20k less than the Foundation Series. The Cybertruck will also become eligible for the Canadian iZEV Heavy EV Rebate.

This puts the Cybertruck in an excellent spot in the future—and it has already outsold its EV competitors in the same market. We’re looking forward to seeing how fast Tesla meets the upcoming demand for non-Foundation Series Cybertrucks.

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