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Home Business & Finance

Tesla faces new challenge as leader announces exit todayheadline

June 9, 2025
in Business & Finance
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As Elon Musk shifts his focus back to Tesla  (TSLA)  amid an ongoing disagreement with President Donald Trump, his company is preparing for another leadership change.

The automaker has expanded into other areas of technology in recent years, prompting its leaders to consistently remind investors that it is more than just a car company. In particular, Musk has touted Tesla’s Optimus program, its division that develops robotic humanoid technology.

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The Tesla CEO hasn’t downplayed Tesla’s progress in this area, describing its Optimus bot as the “most sophisticated humanoid robot on earth,” and describing a future in which humans are outnumbered by robots. This may sound like the plot of a science fiction novel, but Musk has made it clear he believes it is an inevitable phase of technology.

However, his robotic ambitions may be facing a new obstacle. According to recent reports, the program’s leader is leaving Tesla.

Elon Musk may be facing new challenges as one of Tesla’s engineering leaders departs the company.

Image source: Zawrzel/NurPhoto via Getty Images

Musk is betting big on a division as its leader departs

Aside from Musk, many of Tesla’s leaders aren’t widely known, as they typically operate behind the scenes, helping build and supervise the company’s various divisions. But on June 6, Milan Kovac revealed he would step down from his position as vice president of engineering at Optimus.

Related: Tesla sales plunge in key European markets with one shocking exception

In a post on X, Kovac laid out his plans for the future, stating that he felt the need to spend more time with his family abroad. “I want to make it clear that this is the only reason, and has absolutely nothing to do with anything else,” he added, reaffirming his support for both Tesla and Musk.

Kovac joined the company in 2016, initially as a staff software engineer at Tesla’s Autopilot division. He spent years advancing through these ranks, ultimately being named director and later vice president of Optimus.

During his years with Tesla, Kovac played a pivotal role in shaping both its autopilot and robotic humanoid technology. According to his LinkedIn profile, his responsibilities included “driving the engineering teams responsible for all the software foundations and infrastructure common between Optimus and Autopilot,” helping guide both divisions forward.

Kovac’s departure seems to be due to strictly personal reasons and appears unrelated to any controversy surrounding Musk or Tesla. But his swift exit comes at a difficult time for the company, as it prepares for an event on which Musk has hinged much of its growth prospects.

On June 12, Tesla plans to roll out its fleet of self-driving robotaxis in Austin, Texas, delivering on something Musk has promised Tesla’s investors and loyalists for some time. 

More Tesla News:

  • Billionaire fund manager dumps Tesla in favor of other tech stock
  • Analyst sets eye-popping Tesla stock price target
  • Tesla takes drastic measures to keep robotaxi plans secret

As TheStreet reports, though, recent data has demonstrated low public trust in Tesla’s autonomous driving technology, indicating that many believe it is likely unsafe, and some think it shouldn’t be legal.

This raises more questions for the company as it prepares for a major event and a key leadership change.

The road ahead may be complicated for Tesla

While most recent Tesla coverage has centered around the robotaxi launch and Musk’s feud with Trump, other tech leaders have been doubling down on their own robotic endeavors. TheStreet’s Fernanda Tronco recently reported that Amazon has begun testing humanoid robots to deliver its packages.

Related: The ‘anti-Tesla’ gives American buyers more good news

This means that Tesla may be at risk of being overtaken in the robotic technology market, which isn’t part of Musk’s plans. “The future of the company is fundamentally based on large-scale autonomous cars and large-scale and large volume, vast numbers of autonomous humanoid robots,” he stated on a recent Tesla earnings call.

If that is true, Tesla likely can’t afford to fall behind, as companies like Amazon power forward, making strides toward delivering helpful robotic humanoid technology. Musk has pinned Tesla’s future on its Optimus and its self-driving technology, just as the person who helped build both divisions is departing.

Autopilot and AI software team VP Ashok Elluswamy is reportedly taking over Kovac’s position. How the company will handle this important change as it prepares for a highly pivotal event remains to be seen. 

Related: Billionaire fund manager, skeptical of AI, backs shocking stock

Tags: announceschallengeExitfacesLeaderTeslatodayheadline
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