Raj Jegannathan, Tesla’s vice president of IT and former head of North American sales and service, has left the company after more than 13 years, marking the end of a significant tenure during which he played a key role in shaping the firm’s operational and technological direction. Jegannathan, who reported directly to CEO Elon Musk, stepped down over the weekend, according to sources familiar with the matter. His departure follows a period of declining vehicle deliveries—Tesla reported a 16% year-over-year drop in Q4 2023, its second consecutive annual decline—amid intensifying competition and internal restructuring. Jegannathan assumed leadership of Tesla’s North American sales and service operations in July 2023, succeeding Troy Jones. Despite having a background in engineering and IT rather than sales, he quickly became a central figure in the company’s efforts to integrate artificial intelligence into customer-facing workflows. Internal sources confirmed he championed AI-driven tools to streamline service scheduling, enhance customer support, and optimize sales processes. His LinkedIn post on the day of his departure emphasized the importance of a holistic, data-driven understanding of business operations to enable AI to deliver tangible results. During his time in charge, Jegannathan gained visibility for directly engaging with customers and employees on X (formerly Twitter), where he responded to inquiries and complaints, reflecting Musk’s broader culture of transparency and direct communication. However, his involvement in sales leadership waned in recent months, with sources indicating he had been inactive on internal systems since late January and had not collaborated closely with the sales team for several months prior. His exit comes amid a broader wave of leadership changes at Tesla. Over the past year, several top executives have departed, including Omead Afshar, Musk’s former chief of staff, and Milan Kovac, head of the robotics division, both leaving in June 2023. These departures underscore a period of organizational flux, particularly as Musk focused on his role in the U.S. Department of Government Efficiency, which was dissolved in early 2024. The absence of key leadership figures has raised questions about Tesla’s ability to maintain momentum during a critical phase of industry transition. While Tesla has not commented on Jegannathan’s departure, his exit signals a potential shift in the company’s strategic focus. His deep technical expertise and long tenure positioned him as a bridge between engineering and business operations—a role that may now be reassessed. Industry observers note that as Tesla faces increasing pressure from rivals in electric vehicles and AI integration, retaining experienced leaders who understand both technology and market dynamics will be crucial. Jegannathan’s legacy includes advancing AI adoption within customer operations and helping navigate a challenging sales environment. His departure may reflect a recalibration of leadership priorities, especially as Tesla looks to stabilize its delivery performance and strengthen its long-term competitiveness.