In a yet another event of rapid departures of Tesla’s top executives the latest to join the bandwagon is Tesla’s Vice President of Manufacturing, Gilbert Passin. According to the reports, it is speculated that Passin left months ago. When queried about the details, the Tesla officials neither confirmed nor denied those reports.
In past one year, the company has witnessed exits of senior executives including - former senior vice president of engineering, Doug Field who had made an exit after five years, and Dave Morton, former chief accounting officer. Field was rehired by Apple Inc., Morton went on to become the new CFO of business software company Anaplan.
Also, Head of HR and Communications executive and vice president of global supply management, Liam O’Connor were among the five top deputies to leave the company. In response to the exodus, Musk announced a flurry of promotions to reintegrate its team.
However in a recent significant move, amidst all the chaos, Tesla has reportedly bought a 210-acre land for its new plant in Shanghai’s eastern Lingang district for $140 million.
With this purchase, the car manufacturing giant has scored site for its first factory in the country which will remarkably lower the costs for Tesla. Issuing a statement on the latest development in Shanghai, Tesla’s vice president of world-wide sales, Robin Ren said,
“Securing this site in Shanghai, Tesla’s first Gigafactory outside of the United States, is an important milestone for what will be our next advanced, sustainably developed manufacturing site.”
Chinese policies, currently, have a limit of 50% to foreign ownership of companies set up in the country. On April, it was announced that these ownership caps will be dispelled by 2022 for Global carmakers who have been operating with their Chinese partners.
Carlos Ghosn, the chairman of the Renault-Nissan-Mitsubishi Motors alliance motors, welcoming the latest amends said,
“We now have a choice, which will make our partnership more solid. If you can still maintain the partnership in five years, it’s because the relationship is mutually beneficial, not because of a law.”
Liberalisation in the policies will usher the way for giants like Tesla to open a wholly owned factory. However, setting up a car facility without any local partner is met by opposition from certain local authorities of the country.
Tesla plans to develop its first cars in the next three years. Initially, the factory will accommodate 250,000 vehicles and battery packs and will expand in due course.