Dhillon's departure comes at a critical time for tesla. The company is trying to produce four different electric cars simultaneously at its fremont plant: the Model 3, the Model Y, the Mode S and the Model X.

Tesla, the head of production at tesla is leaving

(photo: tesla website)

production director at tesla's fremont, calif., factory, has left the company for unspecified reasons, according to two sources. Dhillon has been with tesla for seven years and was in charge of the Model 3 production at the fremont plant before leaving.

Tesla and Dhillon declined to comment on the report.

During his tenure, Dhillon started the company's in-house seat-making business a few miles south of the fremont auto plant. In general, it is considered risky for automakers to produce their own seats and proprietary seat frames. But with Elon Musk, chief executive, pursuing pure vertical integration to make the company highly self-reliant, tesla has succeeded in that task.

Production of the Model 3 at tesla's fremont plant has been going through a rough patch for the past two years, but under Dhillon's management, tesla finally achieved peak production of the Model 3 at the end of 2019, according to colleagues.

Dhillon's departure comes at a critical time for tesla. The company is trying to produce four different electric cars simultaneously at its fremont plant: the Model 3, the Model Y, the Mode S and the Model X. The Model 3 is the company's most popular car to date; The new crossover SUV Mode Y shares some parts with the Model 3, and its appearance is similar to the Model 3. Mode S and Model X are more expensive.

In addition to fremont, tesla operates a large battery plant in Reno, nev., and a smaller plant in buffalo, n.y., that makes electronic components for chargers. On top of that, tesla is trying to make cars across borders. The company has already started production at its Shanghai gigafacfactory, which recently delivered its first locally made Model 3 to consumers. Tesla also began clearing forests in Germany to build a factory in Berlin.

Tesla's shares rose sharply late last year and early this year, but plunged this week on supply chain disruptions, the spread of a global outbreak and the fall in oil prices. Overall, tesla shares are up about 50% so far this year.