Changes are afoot in Elon Musk’s business empire, starting with his most successful international company: Tesla. The electric-car maker missed analysts’ expectations for production volume and shares fell, in part on investor concerns that the billionaire may not be able to devote enough time to his auto business after acquiring Twitter.
A change at the top of Tesla shows what will happen for the company, but perhaps also for Elon Musk himself. Earlier this week, Reuters reported that Tesla’s vice president for China, Tom Zhu, has been promoted and will now be in charge of the company’s American factories, as well as sales in North America, Europe and Asia.
This makes him practically second in the standings after Musk – there has been no such person until now. Axios notes that this makes Zhu a clear contender for the company’s leadership if the founder decides to step down.
Who is he?
Tom Zhu was born in China but has a New Zealand passport. He is a graduate of Duke University with a degree in business administration. He has been with Tesla since 2014, having previously assisted Chinese contractors on infrastructure projects in Africa, an area where Beijing is very active through its state-owned banks and construction companies.
Business Insider notes that during Shanghai’s two-month lockdown due to the coronavirus, Zhu was the first Tesla employee to self-isolate at the factory to ensure business continuity. Living in the workplace is something Elon Musk himself practices, and last year he praised the work ethic of Chinese workers.
“Reuters” recalls that last year Zhu and his team were sent to the United States to help solve a manufacturing problem. Even then, observers commented that he was probably about to take on a bigger role.
He currently lives in a government-subsidised apartment a 10-minute drive from the Shanghai gigafactory.
What’s next for him?
Tom Zhu has a lot of work ahead of him. Tesla’s market share in the US is declining, and sales in its native China aren’t doing well either.
Until now the company is trying to compensate for this with promotions and discounts on its cars, but supply chains are also a serious problem, so you currently have to wait months for a new car.
Holders of the shares are likely happy with their current price of just over $108 apiece to 300 in September.
Because of all this, Tom Zhu will probably have to wear a sleeping bag to work for quite some time.
