After layoffs around the world, Tesla has made major personnel moves again.

According to multiple foreign media reports, Zhu Xiaotong, one of Tesla's core executives, may return to Tesla China. Zhu Xiaotong has led the layout of Tesla's super charging stations in China and the production of the Shanghai Super Factory, and has rich experience and strategic skills.

Zhu Xiaotong

In April 2023, Tesla reorganized its senior management and promoted Zhu Xiaotong to senior vice president of automotive business, becoming one of Tesla's four top executives and entering the core management. In addition to Musk and Zhu Xiaotong, Tesla's other two top executives are CFO Zach Kirkhorn and senior vice president of powertrain and electrical engineering Drew Baglino. Kirkhorn resigned in August last year and was replaced by Vaibhav Taneja.

At that time, Musk was busy running other companies and reorganizing the newly acquired Twitter. Zhu Xiaotong's power was further expanded. He took charge of Tesla's sales business in North America and Europe, becoming the actual person in charge of Tesla's automotive business and the second most important person after Musk.

But people familiar with the matter said that in recent months, Musk has taken over the North American car sales business from Zhu Xiaotong, and Zhu Xiaotong is no longer responsible for North American business.

Tesla has carried out several rounds of layoffs in recent weeks, with six top executives leaving, including Baglino, one of the top four executives, and Rohan Patel, vice president of public policy and business development.

At present, Tesla’s official website still lists Zhu Xiaotong as one of the three major executives, the other two being Musk and CFO Harvey Tania.

It is speculated that Zhu Xiaotong's return has two meanings. On the one hand, it is a sign that Musk is further tightening his personal control over Tesla. On the other hand, it may also be to let Zhu Xiaotong, who understands the Chinese market, fully promote the implementation of Tesla's fully autonomous driving system FSD in China.

In China, a country that is very enthusiastic about new technologies, the government is actively encouraging the adoption of autonomous vehicles through policies and funding. Tesla's FSD system may rewrite the landscape of the smart electric vehicle market. Although the regulatory framework has not yet been fully established, this technology is consistent with the national strategic direction of smart transportation and reducing carbon emissions.

It can be said that Zhu Xiaotong's expertise and understanding of the Chinese market can help Tesla implement FSD in China more smoothly, including software customization, data management in specific areas, and infrastructure support, so that Tesla can better meet regulatory conditions and consumer expectations.

Facing competition from new Chinese car manufacturers, Tesla is under great pressure to grow in China. Data shows that Tesla produced 433,700 vehicles in the first quarter, but delivered only 386,800 vehicles, not only down 8.5% year-on-year, but also far below the 449,000 vehicles initially expected by analysts. This is the first decline in deliveries since the impact of the COVID-19 pandemic in 2020. At the same time, in seven of the past eight quarters, Tesla's production has exceeded sales, inventory pressure has increased, and cash flow has been tight.

Zhu Xiaotong's return may strengthen Tesla's market position by adjusting manufacturing and marketing strategies.