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Summary:

Electric car maker Tesla has confirmed with us that Chairman and investor Elon Musk has taken over the role of CEO at the company. (The Register confirmed the news earlier this morning) Ze’ev Drori who was hired as CEO last December will continue on at the […]

Electric car maker Tesla has confirmed with us that Chairman and investor Elon Musk has taken over the role of CEO at the company. (The Register confirmed the news earlier this morning) Ze’ev Drori who was hired as CEO last December will continue on at the company as Vice Chairman of the Board of Directors. Tesla has also confirmed that there will be what they call “modest” layoffs.

Update: Tesla has posted to its blog a note from Elon Musk explaining the reason for the layoffs and the CEO change. As promised, the company says the move is “a strategic response to the liquidity crunch.” In the blog post, Tesla says it will focus on production of the Roadster, as well as powertrain sales to other automakers, in an effort to become cash-flow positive in the next six to nine months. Musk says the powertrain business is already profitable and “growing rapidly,” in spite of a soft auto market. As for the Model S, he says production will be delayed anywhere from six months or until mid-2011:

Tesla is absolutely committed to development of our next generation vehicle, to be unveiled early next year. However, we are going to reduce activity on detailed production engineering, tooling and commitments to suppliers until our Department of Energy loan guarantee becomes effective.

Tesla has needed to raise a lot of cash to get its electric vehicles into production and just announced that it will need to spend $250 million to build its new plant in San Jose. Good thing the company picked a close-to-home location for the plant: Musk also writes that the company is planning to close its Detroit-vicinity office, citing a need for “good communication, tightly knit engineering and a common company culture.”

Celeste LeCompte contributed to this article.

  1. [...] Comments Posted October 15th, 2008 at 9:00 pm in Startups Tesla chairman and investor Elon Musk explained in a blog post this afternoon that, in an attempt to become cash-flow positive within 6 to 9 months, he has taken over as CEO of [...]

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  2. [...] chairman and investor Elon Musk explained in a blog post this afternoon that, in an attempt to become cash-flow positive within 6 to 9 months, he has taken over as CEO of [...]

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  3. I teach loop quantum magnetism. using the laws of physics to explain how to have a human soul. thus witnessing 4 oneself the meaning to Sacrates on “through knowing yourself you understand the secrets of the universe. every dec and june Apophis crosses our planets orbit and we are in the crossing about every 5,000 years. It refreshes our planets magnetic grid. Exited atoms exspand and now can hold more elecrons, like earth we only conduct one kind. all that space junk could threaten these was 3 maybe now only one, asteroids that don’t hi use becase you cant get 2 like magnets together. we are in the stimulation phase which has mad the aura exspand and flatten from the solar winds. so Apophis comes closer. Because of development it isn’t visable with the naked eye as it was in days gone by told in legends, such as the end of days story. As I told a CIA wanker who thinks he is illuminated. That he felt the excaping protons from his soul implosion and is actually creating a mini black hole. The other magnetic force which is what I teach people top be and hav e thier personal part of is the strong force energy that makes all matter that exist. Also known as God. When people knew the truth. I like all the goals you have except I think you should focus your energies on the ground and don’t let anything hit Apophis. It tha is knocked out of the sky Earth will become like Mars. Mans ambitions need to be onsaving their home. You can get the holy grail on the first try with what I teach if before a thunder storm. In California u have to be not goofing around. Mature here is not as forgiving 4 one getting disapated through bad non human style sex. I told an old woman what I do for a living and she ated outraged. When she exsplaned why. Cause Jesus is the way. I said, the last famonse person to do what I do for a living was Mary Magdeline and she made it so Jesus could walk on water. Then I pointed to her responce and said that respnce is why no one knows what I know and I am the authority on the subject and science, and how. Now there is a desparete need for people to stop the angree focus on weather they are killing a human soul that is a fetus and worry about how many times they have done acts that disapate and eventually kill their own personal human soul. I am actually from the holy bllod line and it is a very disfunctional family through church interferance. Going back thousands of years. Your ambitions and mine can work toghether to make a better world. I have the the aproval of the State of Cal finaial stratigist approval for an economice plan that makes the transportation and solar solutions affordable and doable. I can if you help me get 6 million solar homes and teslar transportation set ups in the first year. My propgram need to be quitly done. I make God self evident for people as they exsperience the wonders of their atomic body properly used in sync with nature as it should be and with your help I can make an economic mirical that will make this country a shinning light for the reat of the wold and the time line is being visually and economicly sound within 5 years if the propgram gets full launch capabilties. I said to a kid who was exclaiming how he didn’t want to. I hald his feet up so the electron would hit his brain up the front and he said, No I want to die and have sex with a thousand virgin maidens. I said those are virgin ants. Your dinner. Surrender to God it is absolute, laws of physics. Then I saw the movie recently called TRAITOR and saw why my words made him relax and go with it. Nothing blew up. Sincerly, C O’Brein

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  4. [...] at the Dow Jones Alternative Energy Conference in Redwood City, Calif., less than one week after announcing layoffs, a delay of the company’s next-generation vehicle, and that he would be taking over [...]

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  5. [...] not clear yet what it will all mean for the developing cleantech industry. Last week we reported on layoffs and executive swaps at Tesla but the headlines this week were largely [...]

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  6. [...] not clear yet what it will all mean for the developing cleantech industry. Last week we reported on layoffs and executive swaps at Tesla but the headlines this week were largely [...]

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  7. [...] not clear yet what it will all mean for the developing cleantech industry. Last week we reported on layoffs and executive swaps at Tesla but the headlines this week were largely [...]

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  8. [...] UK Lotus facility where the Lotus Elise-based Roadster is built, Autocar reports. This news follows layoffs back at home in San Carlos, Calif., the closing of Tesla’s Detroit-vicinity office and the reshuffling of executives. [...]

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  9. [...] PR. For the past couple of months, the electric vehicle startup has been dogged by news of its layoffs, its formerly dwindling bank account, and its inability to raise a $100-million financing round on [...]

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  10. [...] PR. For the past couple of months, the electric vehicle startup has been dogged by news of its layoffs, its formerly dwindling bank account, and its inability to raise a $100-million financing round on [...]

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