back
Get SIGNAL/NOISE in your inbox daily

Tesla’s VP of AI and Optimus Engineering Milan Kovac announced his departure from the company this week after nine years leading the development of Full Self-Driving (FSD) technology and the Optimus humanoid robot program. The resignation of the Belgian engineer, who was instrumental in Tesla’s autonomous driving evolution since 2016, represents another high-profile executive exit as the company consolidates its AI leadership under Ashok Elluswamy, Tesla’s director of Autopilot software.

What you should know: Kovac cited family obligations as his primary reason for leaving, emphasizing his need to spend more time with family abroad after years away from home.

  • He joined Tesla in 2016 during a pivotal moment when the company launched its second-generation Autopilot system built on Nvidia’s Drive PX2 platform.
  • Kovac personally handled the complex migration of code and functionality from Tesla’s original Autopilot 1.0 system to the new architecture.
  • With his departure, Ashok Elluswamy will assume responsibility for both the FSD program and Optimus robot initiatives, consolidating Tesla’s AI development under single oversight.

Key technical contributions: Kovac earned recognition as one of Tesla’s Autopilot “Three Musketeers” alongside Andrej Karpathy, the OpenAI co-founder, and Ashok Elluswamy for his role in developing the company’s first in-house FSD chip.

  • By 2018, he had become central to Tesla’s HW 3.0 chip development, leading engineering efforts from initial installation to mass production across Tesla’s entire vehicle lineup.
  • The transition required coordinating hardware integration with software optimization across multiple vehicle platforms simultaneously.
  • His technical expertise extended from core Autopilot engineering to leading the Optimus robotics division, which he described as building “an entire platform: hardware & software all at once” from minimal initial resources.

Executive tensions revealed: Kovac’s relationship with Elon Musk wasn’t always smooth, as documented in Walter Isaacson’s biography of the Tesla CEO.

  • During preparations for Tesla’s 2021 AI Day presentation, tensions reached a breaking point when Musk harshly criticized Kovac’s technical presentation slides, calling them “So boring!”
  • Tesla executives Lars Moravy and Pete Bannon intervened to prevent Kovac’s resignation, helping restructure the presentation after sharing drinks.
  • The incident illustrates the intense pressure and expectations that define Tesla’s executive environment, where technical excellence must align with Musk’s vision for public communication and talent acquisition.

The bigger picture: Executive departures aren’t unusual at Tesla, with former leaders including J.B. Straubel, Jerome Guillen, and Doug Field having moved on without causing major operational disruptions.

  • However, Kovac’s technical contributions span nearly a decade of Tesla’s most ambitious AI projects, making his departure particularly significant for the company’s autonomous driving and robotics ambitions.
  • The consolidation of AI leadership under Elluswamy suggests Tesla is streamlining its technical organization as it advances both FSD and Optimus programs.

What they’re saying: In his departure announcement, Kovac maintained strong support for Musk and the Tesla team while explaining his personal decision.

  • “I’ve been far away from home for too long, and will need to spend more time with family abroad,” he explained.
  • Musk’s response acknowledged Kovac’s decade-long contributions while expressing gratitude for his technical leadership.

Recent Stories

Oct 17, 2025

DOE fusion roadmap targets 2030s commercial deployment as AI drives $9B investment

The Department of Energy has released a new roadmap targeting commercial-scale fusion power deployment by the mid-2030s, though the plan lacks specific funding commitments and relies on scientific breakthroughs that have eluded researchers for decades. The strategy emphasizes public-private partnerships and positions AI as both a research tool and motivation for developing fusion energy to meet data centers' growing electricity demands. The big picture: The DOE's roadmap aims to "deliver the public infrastructure that supports the fusion private sector scale up in the 2030s," but acknowledges it cannot commit to specific funding levels and remains subject to Congressional appropriations. Why...

Oct 17, 2025

Tying it all together: Credo’s purple cables power the $4B AI data center boom

Credo, a Silicon Valley semiconductor company specializing in data center cables and chips, has seen its stock price more than double this year to $143.61, following a 245% surge in 2024. The company's signature purple cables, which cost between $300-$500 each, have become essential infrastructure for AI data centers, positioning Credo to capitalize on the trillion-dollar AI infrastructure expansion as hyperscalers like Amazon, Microsoft, and Elon Musk's xAI rapidly build out massive computing facilities. What you should know: Credo's active electrical cables (AECs) are becoming indispensable for connecting the massive GPU clusters required for AI training and inference. The company...

Oct 17, 2025

Vatican launches Latin American AI network for human development

The Vatican hosted a two-day conference bringing together 50 global experts to explore how artificial intelligence can advance peace, social justice, and human development. The event launched the Latin American AI Network for Integral Human Development and established principles for ethical AI governance that prioritize human dignity over technological advancement. What you should know: The Pontifical Academy of Social Sciences, the Vatican's research body for social issues, organized the "Digital Rerum Novarum" conference on October 16-17, combining academic research with practical AI applications. Participants included leading experts from MIT, Microsoft, Columbia University, the UN, and major European institutions. The conference...