The decision marks a significant pivot under Napoli, who took the helm on June 1 with a mandate to stabilize the struggling automaker. Facing persistent difficulties in scaling production and maintaining build quality, the company has initiated a rigorous cost-cutting program targeting $1.4 billion in savings by year-end. This strategy already includes an 18% reduction in the total workforce and the cancellation of a second shift at the Arizona manufacturing plant.
Napoli has overhauled the C-suite to support this restructuring, following the exit of several high-ranking executives, including Senior Vice President of Finance Gagan Dhingra. These internal tremors come as the company warns of lower-than-anticipated production volumes, a move that triggered a 15% drop in stock price on Wednesday. Suppliers are also feeling the friction, as the company’s SEC filings note that reduced output could strain existing contractual relationships.
While the Cosmos delay leaves a gap in the product roadmap, the company is pivoting focus toward its partnership with Uber and Nuro. Napoli identified the upcoming robotaxi project as a non-negotiable priority. Uber CEO Dara Khosrowshahi has publicly backed the restructuring, citing the support of the Public Investment Fund of Saudi Arabia as a stabilizing force for the company's long-term survival.
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