David Lau, Tesla's Vice President of Software Engineering, has announced his departure from the company. Lau, who has been a key figure at Tesla for nearly 13 years, played a significant role in promoting Tesla's products alongside CEO Elon Musk. His team was responsible for managing Tesla's vehicle software systems, including in-car entertainment, cybersecurity, over-the-air (OTA) updates, cloud services, and manufacturing systems.
The reason for Lau's resignation is not yet clear. In 2023, Lau appeared with Musk at an event showcasing potential successors for the CEO role. Earlier in the year, Musk faced criticism for his acquisition and management of Twitter (now X) and for selling Tesla shares to fund the purchase. When Tesla launched the revamped Model 3 sedan, Lau was featured in a promotional video discussing the vehicle's design changes and new features.
After the news of Lau's departure, Tesla's stock (TSLA, Financial) fell by 10%. Since reaching an all-time high following Trump's election victory, Tesla's stock has dropped 44%. The company is currently dealing with several challenges, including consumer backlash against Musk's political stance, an aging EV product line, a sluggish electric vehicle market, and the impact of U.S. auto tariffs.
