As Tesla struggles with mounting technical problems and leadership departures, one of its star engineers has joined the exodus from the electric vehicle giant. Milan Kovac, vice president of engineering at Tesla Optimus, announced his departure in June 2025 for personal reasons. He’d been with the company since 2016, starting as a senior software engineer for Autopilot before rising to lead the humanoid robot project.
Kovac’s exit comes at a pivotal time for Tesla’s robotics division. The company announced a temporary halt in Optimus production for a two-month design enhancement period beginning July 2025. This pause aims to address serious technical issues plaguing the robot.
The machine’s joints overheat during operation, its hands break down too quickly, and battery life can’t support extended tasks. In Tesla’s battery workshops, the robots work less than half as efficiently as human workers. Despite these challenges, Tesla continues to invest heavily in automated technology to improve production efficiency. As the company seeks to streamline operations and reduce costs, the impact of robotic performance becomes even more critical, especially in light of the Tesla Model Y price history, which has fluctuated due to production delays. Enhancements in robot functionality could ultimately lead to better pricing strategies and increased competitiveness in the electric vehicle market.
The leadership crisis extends beyond the robotics team. At least five senior executives have left Tesla in the past six months, including Omid Afshar, who oversaw North American and European manufacturing operations. Now only Elon Musk and Tom Zhu remain as senior vice presidents on the core leadership team. This mass exodus has raised concerns about the company’s strategic direction amidst a pivotal period of growth and innovation. Analysts are particularly focused on a tesla us sales performance analysis, which could indicate how these leadership changes might impact overall production and market competitiveness. As uncertainty looms, stakeholders are left questioning how Tesla will navigate its future without a more stable leadership foundation.
The departures aren’t just about job dissatisfaction. Trae Cervantes, who worked at Tesla’s Nevada Gigafactory for seven years, resigned in March 2025 citing moral discomfort with Musk’s recent actions and political involvement. Cervantes, who began as a production associate in 2018 and advanced to engineering technician, emphasized his departure stemmed from ethical disagreements with leadership rather than workplace conditions.
Despite Tesla providing professional development programs and career advancement opportunities, Cervantes couldn’t reconcile personal values with the company’s direction.
Kovac’s departure creates significant gaps that other engineers must fill within weeks. His role overseeing sensors, AI infrastructure, and integration with Tesla’s proprietary hardware leaves vital positions vacant.
While suppliers confirm Tesla hasn’t officially canceled parts orders, they’ve stopped procurement until design revisions are complete. The suspension of component procurement began approximately two weeks ago, affecting the supply chain for the planned 5,000-unit production run.
The production halt and leadership turnover occur amid tensions between Musk and the Trump Administration. This corporate turbulence affects both manufacturing operations and the robotics division, creating uncertainty around project timelines. Meanwhile, Tesla’s charging infrastructure continues to face its own challenges, with circuit breaker issues being the most common cause of Wall Charger failures across the network. Additionally, stakeholders are also expressing growing unease regarding the tesla robotaxi launch secrecy concerns, which have led to speculation about the company’s readiness to deploy this innovative service. As internal conflicts simmer and external pressures mount, the need for clear communication from Tesla’s leadership becomes increasingly urgent. This combination of operational disruptions and public uncertainty may impact investor confidence as future milestones approach. Moreover, the recent buzz around tesla’s retro diner concept has generated interest and excitement among fans and potential customers alike. However, without addressing the ongoing operational issues, the company risk overshadowing this innovative project with lingering doubts about its overall direction. Successfully integrating this new concept into Tesla’s branding could provide a much-needed boost, but clarity and consistency will be crucial for maintaining stakeholder trust. Investors and consumers alike are seeking clarity on the dichotomy between expectations and actual progress, leading to heightened discourse around the topic of ‘tesla hype and reality explained.’ As perceptions of the company’s capabilities and timelines diverge, it’s essential for Tesla to address these concerns head-on to restore confidence. Failure to do so could not only hinder upcoming projects but also tarnish the brand’s reputation in the rapidly evolving automotive landscape.
Tesla expects production to resume once design adjustments meet performance and reliability standards, but the timeline remains unclear as the company explores these challenges.