Autonomous electric tractor startup Monarch Tractor has informed its staff that it may need to lay off over 100 employees, or potentially “shut down,” according to a company-wide memo acquired by TechCrunch.
This warning follows recent job cuts at its facilities in California and with remote teams in India and Singapore, as confirmed by several former employees who spoke with TechCrunch on condition of anonymity.
Founded in 2018 by a team that included a former top executive from Tesla’s first gigafactory and Carlo Mondavi, a member of the well-known winemaking family, Monarch Tractor has raised at least $220 million, with $133 million secured in 2024. The company aimed to create “driver optional” autonomous tractors for use in wineries and fruit farms.
While Monarch Tractor claims to have shipped approximately 500 of these tractors, it announced a restructuring in late 2024 intended to broaden their applications, including dairy farming and golf course maintenance. CEO Praveen Penmesta indicated that the company would shift focus to selling software services and licensing its autonomous technology.
However, at least one customer—one of Monarch’s initial dealers—has alleged that the autonomous technology has not functioned properly. Idaho dealership Burks Tractor has filed a lawsuit claiming that Monarch sold them “defective” vehicles that faced “significant problems” upon delivery in 2024. Burks specifically accused Monarch’s tractors of being “unable to operate autonomously,” a claim Monarch has denied in court.
In the memo to employees, Monarch suggested it is moving further away from manufacturing tractors, particularly after losing 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 human resources team wrote. “Unfortunately, the timing for completing the transition to the new business plan puts Monarch at risk of shut down.”
Monarch has informed employees that it may permanently lay off “up to 102 employees.” The company’s current workforce is unclear; it had around 300 employees in late 2024, which included a layoff of over 10% as part of the restructuring. Former employees knowledgeable about the recent cuts couldn’t specify the exact number affected. Penmesta did not immediately reply to a request for comment.
This year, Monarch Tractor has also seen the departure of key talent, including co-founder Mark Schwager from 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, noting he would stay 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.”
