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Zach Kirkhorn, a key figure in Tesla Inc and one of Elon Musk’s closest confidants, has unexpectedly resigned from his position as chief financial officer. This comes as the electric car manufacturer faces the challenges of cost-cutting and protecting its profit margins after a series of price reductions.
Vaibhav Taneja, who had been the chief accounting officer since 2019, has replaced Kirkhorn in the top finance role, according to an official filing made by the company on Monday (source). Kirkhorn will remain with the company until the end of the year to assist with the transition, and the company expressed gratitude for his significant contributions.
This departure marks a period of relative stability in Tesla’s senior leadership, which has historically experienced frequent changes. Kirkhorn, who has been with Tesla for 13 years, assumed the role of CFO four years ago and has since played a pivotal role in improving the company’s financial performance. Under his guidance, Tesla’s annual free cash flow increased from breakeven to over $7 billion last year.
With successful resolutions to production issues related to the Model 3 sedan, Tesla’s shares have surged by a factor of ten since 2019. In 2022, the company delivered a total of 1.3 million vehicles.
During Tesla’s recent quarterly earnings call, held less than three weeks ago, there was no indication of Kirkhorn’s impending departure. On the call, he emphasized his focus on near-term cost reduction to free up capital for future investments, as Tesla prepares for the launch of the highly anticipated Cybertruck and the establishment of a new production facility in Mexico.
Kirkhorn’s attention to operational details during Tesla’s presentations and earnings calls reassured investors that the company had overcome its historical production challenges. His calm and measured delivery provided a contrast to Musk’s spontaneous financial remarks, allowing him to translate and simplify Musk’s comments for Wall Street analysts.
For instance, when Musk announced that Tesla would invest $1 billion in its Dojo supercomputer by the end of next year, Kirkhorn clarified that the mentioned figures included both research and development spending and capital spending. He further highlighted that Tesla regularly updates its guidance to reflect evolving costs and the fast-paced nature of the industry.
Taneja joined Tesla during the controversial acquisition of SolarCity, Elon Musk’s solar power company, in 2017. Prior to that, he accumulated 17 years of experience at PwC, working in both India and the US.
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