Raj Jegannathan, a key executive who spent 13 years helping build Tesla, announced his resignation on Monday. He shared the news in a brief LinkedIn post, describing his long career at the electric vehicle company as a journey of “continuous evolution.” His departure comes at a rocky moment for the automaker as it struggles with falling sales and a damaged reputation.
Jegannathan held a wide range of responsibilities during his time at Tesla. Most recently, he served as the vice president of information technology and AI infrastructure. However, Elon Musk gave him a much harder task last year: fixing the company’s sales in North America. Tesla moved Jegannathan into that role after dismissing the previous sales leader, Troy Jones, in hopes of reversing a downward trend in deliveries.
Tesla is currently navigating a difficult environment. In 2025, the company’s revenue dropped by 3%, marking the first time in its history that annual sales actually declined. Several factors are hurting the brand. Tesla’s current lineup of cars is starting to look old compared to fresh models from competitors.
Perhaps more significantly, Elon Musk’s public behavior has alienated many potential customers. His loud political rhetoric, his role in the Trump administration, and his vocal support for far-right figures have sparked a backlash from buyers in both the United States and Europe. This shift in public opinion has made it much harder for Tesla to maintain the dominant position it once held.
With Jegannathan now gone, Tesla faces even more pressure to find a spark. Investors are no longer satisfied with futuristic promises alone. They want to see the company stabilize its core car business and finally prove that its driverless technology can work safely in the real world. For now, the company must figure out how to sell cars to a public that is increasingly skeptical of its famous CEO.
