Hustler Words – Autonomous electric tractor manufacturer, Monarch Tractor, is facing a critical juncture, informing its workforce on Thursday of potential layoffs impacting over 100 employees, and even the possibility of a complete shutdown, according to an internal memo obtained by hustlerwords.com.
This announcement follows earlier cost-cutting measures implemented in recent weeks, affecting personnel at its California headquarters and remote teams in India and Singapore, as confirmed by multiple former employees who requested anonymity.
Founded in 2018, with backing from figures like a former Tesla executive and Carlo Mondavi of the renowned winemaking family, Monarch Tractor secured at least $220 million in funding, including a significant $133 million round in 2024. The company aimed to revolutionize agriculture with "driver optional" autonomous tractors designed for use in vineyards, orchards, and other farming operations.
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While Monarch Tractor claims to have delivered approximately 500 tractors, a restructuring in late 2024 signaled a shift in strategy, with plans to broaden the tractor’s applications to include tasks like feeding livestock on dairy farms and maintaining golf courses. CEO Praveen Penmesta also indicated a greater emphasis on software services and licensing the company’s autonomous technology.
However, the path hasn’t been smooth. One of Monarch Tractor’s initial dealerships, Burks Tractor in Idaho, filed a lawsuit alleging that the tractors were "defective" and suffered from "significant problems" upon arrival in 2024, primarily citing their inability to operate autonomously. (Monarch has denied these claims in court filings.)
The memo to employees suggests a further pivot away from tractor manufacturing, a move potentially influenced by the loss of its contract manufacturer, Foxconn, earlier this year.
"The new business plan will enable Monarch customers to launch fully commercialized software as a service (SaaS) autonomy and other software offerings direct to consumers, unlocking new revenue streams to OEMs," the startup’s HR team wrote. "Unfortunately, the timing for completing the transition to the new business plan puts Monarch at risk of shut down."
The company informed employees that it may permanently lay off "up to 102 employees."
The exact number of current Monarch Tractor employees remains unclear. In late 2024, the company employed around 300 individuals before laying off over 10% of its workforce as part of the restructuring. The former employees familiar with the recent cuts were unable to provide precise figures. Penmesta has yet to respond to requests for comment.
Throughout the year, Monarch Tractor has also experienced the departure of key personnel, including co-founder Mark Schwager, formerly of Tesla.
"We started Monarch with a daring vision: that farming could be electrified, automated, smart and made more profitable – all at once," Schwager stated in a LinkedIn post in July, adding that he would remain on the company’s board. "Monarch is in great position and in great hands for the next leg of its trajectory – making the timing right for this transition."
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