A customer enters the lounge at the Tesla Inc. Supercharger station in Kettleman City, California, U.S., on Wednesday, July 31, 2019. Picture: PATRICK T. FALLON / BLOOMBERG
A customer enters the lounge at the Tesla Inc. Supercharger station in Kettleman City, California, U.S., on Wednesday, July 31, 2019. Picture: PATRICK T. FALLON / BLOOMBERG

New York — Tesla’s executive turnover is higher than other Silicon Valley-based technology companies and is particularly acute among those reporting to CEO Elon Musk, according to a Bernstein analyst.

The electric-car maker has been turning over about 27% of its top executives annually, Bernstein analyst Toni Sacconaghi said. That’s the highest rate among seven companies that Sacconaghi benchmarked Tesla against, though Snap and Lyft have had similar levels of turnover, he wrote in a report Wednesday.

About 44% of executives reporting to Musk have turned over annually, Sacconaghi found, compared with about 9% on average at the other companies, which also include Amazon.com, Uber and Facebook.

“While one could argue that Tesla’s high turnover reflects its unique and demanding culture, we worry that such turnover not only causes instability but could also reflect more significant concerns among senior leaders about the company’s direction or workplace practices,” Sacconaghi wrote.

Tesla’s loss of executives from critical positions and quick departures by external hires have been “worrisome”, and at current rates, the company’s entire executive team of more than 150 people would be gone in less than four years, Sacconaghi wrote.

Tesla shares fell as much as 3% to $228.03 on Wednesday and are down about 31% for 2019.

With Dana Hull

Bloomberg