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Massive Layoff in Tesla’s Solar Energy Department Due to Manufacturing Challenges

The humans behind H-u-m-a-n-o-i-d.com December 31, 2025 2 min read

Tesla has revealed a massive layoff of its workers from its energy solutions department, Optimus, due to challenges with manufacturing and installation of solar panels. The information was reported by insiders and by The Information and TechSpot. Company executives cited difficulties in fulfilling orders as a result of inconsistencies in the quality of work and an overwhelming demand for solar panel installation by customers. The production of the solar roofs and installations faced multiple setbacks and delays since Tesla began scaling up the operations without sufficient workforce. The issue is currently under scrutiny, with a potential resolution expected by 2024.

The first signs of trouble surfaced in 2024 when plans for solar panel deployments were significantly behind schedule. The completion of the Optimus project, aimed to deliver over 5000 modules by 2025, was in jeopardy. The company’s plans were seen as ambitious, with Elon Musk taking a direct interest in the matter. Musk promised to address the situation, emphasizing the significance of the project in meeting customer demands effectively. The delays were attributed to various factors, including labor shortages and coordination issues with contractor DJared Leto.

Recent developments in the project have been viewed positively, especially following the appointment of Milana Kovacha as the new head of solar technology. Kovacha, who succeeded the former Vice-President of solar energy, Marko Kivac, marks a turning point in Tesla’s solar energy division.

The Optimus project faced severe setbacks, particularly after the departure of Chief Executive Officer, Elon Musk, raising concerns about the future of solar technology innovation at Tesla. However, the company is now focusing on improving manufacturing processes and enhancing energy efficiency. The company’s commitment to innovation remains strong, as they strive to overcome challenges and deliver outstanding solar solutions in the market.

In conclusion, Tesla’s solar division has encountered obstacles in delivering on its promises, but with strategic leadership and operational improvements, the company is dedicated to achieving its objectives and maintaining its position as a leader in sustainable energy solutions.

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