Autonomous electric tractor startup Monarch Tractor has warned employees it may cut more than 100 jobs or even “shut down,” according to a company-wide memo obtained by TechCrunch. The notice follows weeks of job reductions across its California headquarters and remote teams in India and Singapore, former employees said.
Founded in 2018 by a team that included a former Tesla Gigafactory executive and winemaking heir Carlo Mondavi, Monarch Tractor has raised at least $220 million to develop “driver optional” electric tractors for vineyards and fruit farms. The company says it has shipped about 500 units, though a restructuring announced in late 2024 aimed to broaden applications to dairy farms and golf courses while shifting focus toward software services and licensing its autonomous technology.
That transition appears to be worsening strains inside the startup. Monarch recently lost its contract manufacturer Foxconn and is attempting a deeper pivot toward software, the memo showed. “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.”
The warning comes amid customer allegations that the tractors failed to deliver promised autonomy features. Idaho dealership Burks Tractor sued the company, claiming it received “defective” vehicles that were “unable to operate autonomously.” Monarch denied the accusations in a court filing.
Monarch told staff it may permanently lay off “up to 102 employees.” The company had roughly 300 workers in late 2024 before cutting more than 10% as part of its restructuring. CEO Praveen Penmesta did not immediately respond to a request for comment.
The startup has also seen the departure of senior figures, including co-founder and former Tesla executive Mark Schwager. “We started Monarch with a daring vision: that farming could be electrified, automated, smart and made more profitable — all at once,” Schwager wrote in a July LinkedIn post, adding that he would continue serving on the board.
