Tesla’s Musk Plans “Flatter” Management Structure

Tesla Inc. CEO Elon Musk tells employees the company will conduct a “thorough reorganization” to flatten its management structure and improve communication.

The move follows months of production snags and a wave of departures of senior staffers. Musk says the electric car company also will combine some functions and drop activities that aren’t considered vital to the company’s success.

Whether Musk is being proactive or simply responding to staff losses isn’t clear. Over the past 12 months the company has lost its chief financial officer, treasurer, head of business development, chief accounting officer, Autopilot technology leader, top regulatory liaison and the heads of sales and production.

But one observer tells Bloomberg News the reason for the departures isn’t because of job pressure or the unorthodox nature of Musk’s management style. He says many are leaving because they’ve become wealthy through Tesla stock options and are ready to move on to new chapters in their careers.