Tesla AI and sales VP Raj Jegannathan exits amid revenue drop, rising robotics competition

Tesla loses a senior AI and sales executive

Tesla announces the departure of Vice President Raj Jegannathan, a 13-year company veteran, in a brief LinkedIn post saying, "The journey at Tesla has been one of continuous evolution." Jegannathan, who is vice president of IT, AI‑infrastructure, Business Apps and InfoSec, had been assigned last year to lead North America sales after the dismissal of the previous sales chief. The company and Jegannathan do not immediately respond to requests for comment.

The exit removes a senior leader central to Tesla’s AI and enterprise systems at a precarious moment for the automaker. Tesla reports a 3% revenue decline for 2025, its first year‑over‑year drop, and faces pressure to reverse falling vehicle sales while restoring consumer confidence amid criticism of an aging product lineup and reputational challenges linked to CEO behavior. Analysts and investors are watching the company’s ability to sustain software and infrastructure development that underpin advanced driver assistance, full self‑driving ambitions and corporate IT security.

Jegannathan’s dual role overseeing AI infrastructure and sales strategy highlights the integration Tesla seeks between software capability and go‑to‑market execution. His departure forces management to find replacements who can simultaneously stabilise enterprise systems, protect information security and drive consumer adoption of refreshed EV models and autonomous features. Competitors are advancing in both vehicle electrification and robotics, raising the urgency for Tesla to deliver promised driverless systems and its Optimus humanoid robotics roadmap while maintaining production and delivery targets.

Congress moves on national autonomous vehicle framework

The U.S. House Energy and Commerce Committee advances the SELF DRIVE Act in a narrow 12–11 vote, seeking a federal framework for autonomous vehicles. The measure aims to standardise safety rules for AVs, a move industry officials say could ease interstate deployment but which critics warn may pre‑empt stronger state and local oversight.

Alibaba's RynnBrain heightens robotics competition

Chinese tech giant Alibaba launches RynnBrain, an open‑source "physical AI" model for robotics that targets perception and manipulation tasks. The move intensifies competition in the robotics and AI stack that Tesla pursues with its Optimus project, underscoring global pressure on Tesla to convert its software and autonomy investments into reliable commercial products.