Tesla Dismisses Entire US Expansion Team Created Only 4 Months Ago

Tesla recently cut a newly established marketing team as part of companywide layoffs, reversing their previous approach of increased advertising that CEO Elon Musk had approved less than a year ago. The entire US “growth content” team, consisting of approximately 40 employees overseen by senior manager Alex Ingram, was eliminated, including Ingram and Jorge Milburn, who led the global team. While the company still retains a small number of marketing staff in Europe, this move signifies a significant shift in strategy. The decision to cut the marketing team marks a retreat from Tesla’s earlier advertising efforts.

Historically, the automaker avoided television, radio, print, and online ads, relying on word-of-mouth to build its brand. However, Musk announced last year that Tesla would explore limited advertising, a departure from their previous approach. Ingram had begun to build the growth team only four months ago, responding to increasing pressure from investors for Tesla to focus more on marketing as global electric vehicle (EV) sales growth slowed and competition in the market intensified. This shift towards advertising also coincided with Musk’s acquisition of the company formerly known as Twitter, which was experiencing a decline in ad revenue.

The job cuts in the growth team are part of Tesla’s largest-ever layoffs, affecting more than 10% of the global workforce. There are reports indicating that Musk has pushed for a 20% reduction, potentially eliminating over 20,000 jobs. Following these developments, Tesla’s stock fell 3% on Monday in New York and has declined by more than 40% this year, positioning it as the second-worst performer in the S&P 500 Index. The overarching changes in Tesla’s marketing and job cuts signal a significant shift in the company’s approach and have broad implications for its future direction and performance.