A fork in the road, from Tesla to Elon Musk

The email that Tesla's Board of Directors should send to their CEO, Elon Musk.

From: Tesla, Inc. Board of Directors

To: Elon Musk, CEO

Subject: Fork in the Road

Date: February 27, 2025

During the last two months, the share price of Tesla, Inc. (“Tesla” or the “Company”) has dropped by 40%, eliminating $600 billion in shareholder value, and shows no signs of stopping its current free fall. Our sales in Europe are down by 45%, and our sales in the US have been disappointing as we continue to lose market share.

We are therefore issuing a number of directives concerning the Tesla workforce. Among those directives, the Board of Directors of Tesla (the “Board”) has now required that employees return to in-person work, restored accountability for employees who have policy-making authority, restored accountability for senior executives, and reformed the hiring and retention process to focus on merit. As a result of the above orders, the reform of the Company workforce will be significant.

Here is what one of our physical offices looks like, in case you’ve forgotten.

The reformed Tesla workforce will be built around four pillars:

1. Return to Office: Tesla employees who have been working remotely will be required to return to their physical offices five days a week. In your case, that will mean working five days a week from (a) your office at our headquarters in Austin, Texas, (b) our factory in Fremont, California, or (c) the Gigafactory facility in Storey County, Nevada. We have noticed that you have recently been spending a very substantial amount of time in Washington, DC. Tesla does not have a corporate office or factory in Washington, DC.

2. Performance culture: The Tesla workforce should be comprised of the best America has to offer. We will insist on excellence at every level — our performance standards will be updated to reward and promote those that exceed expectations and address in a fair and open way those who do not meet the high standards which the shareholders of this Company have a right to demand. In particular, the Company will reward and retain those who deliver positive financial results, and for those who fail to achieve those results, we will communicate with such employees about seeking alternative career paths.

3. More streamlined and flexible workforce: While some units may see increases in the size of their workforce, the majority of Company offices are likely to be downsized through restructurings, realignments, and reductions in force. These actions are likely to include the use of reductions in force for a substantial number of Company employees, including in the executive office.

4. Enhanced standards of conduct: The Tesla workforce should be comprised of employees who are reliable, loyal, trustworthy, and who strive for excellence in their daily work. Employees will be subject to enhanced standards of suitability and conduct as we move forward. Employees who engage in unlawful behavior or other misconduct (including, without limitation, using hateful speech or hand gestures, endorsing fascist political parties in other nations, or exercising Cabinet-level governmental power or accessing millions of citizens’ financial information or firing essential government workers without legal authorization or Senate confirmation, etc.) will be prioritized for appropriate investigation and discipline, including termination.

Each of the pillars outlined above will be pursued in accordance with applicable law, consistent with the Company’s policies, and to the extent permitted under relevant agreements.

If you choose to remain in your current position, we thank you for your renewed focus on serving Tesla shareholders to the best of your abilities and look forward to working together as part of an improved Company workforce. At this time, we cannot give you full assurance regarding the certainty of your position but should your position be eliminated, or should you be replaced, you will be treated with dignity and will be afforded the protections in place for such positions.

If you choose not to continue in your current role in the Tesla workforce, we thank you for your service to the Company and you will be provided with a dignified, fair departure from Tesla utilizing a deferred resignation program. If you resign under this program, you will retain all pay and benefits regardless of your daily workload and will be exempted from all applicable in-person work requirements until September 30, 2025 (or earlier if you choose to accelerate your resignation for any reason). The details of this separation plan can be found below.

Whichever path you choose, we thank you for your service to Tesla.

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Upon review of the below deferred resignation letter, if you wish to resign:

1. Select “Reply” to this email. You must reply from your Tesla account. A reply from an account other than your Tesla account will not be accepted.

2. Type the word “Resign” into the body of this reply email. Hit “Send.”

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