Newsmakers

Professor of Management, Tammy Madsen provides insight in an ABC7 News article regarding Tesla’s struggles after a report emerged of possible sabotage from a disgruntled employee who was upset about not getting a promotion. In addition, one of Tesla’s electric cars caught on fire in Los Angeles after a battery pack exploded. The company is undergoing constant criticism over autopilot issues.

An excerpt from the article:
"It does seem like a PR nightmare to many organizations if they face this many issues," said Tammy Madsen, professor of strategic management at Santa Clara University.

She believes the latest fallout raises a host of concerns. "It suggests something about the culture of the company and it's not being set up that's productive to help move the organization forward."

Madson was also quoted by the Mercury News on Tesla’s SolarCity acquisition. Tesla is said to be closing 13 of their 14 solar facilities in California and in eight other states. This is part of their plan to decrease 9 percent of their overall workforce.

“The closures are consistent with the operational cost reductions in Tesla’s auto business,” said Madsen. “The recent events signal that Tesla is reviewing the cost structure of all of its businesses (and) revisiting the true sources of value creation and value capture is a critical part in managing growing pains.”

Learn more about Professor Tammy Madsen »