Tesla Motors’ CEO Resigns Amid Layoffs

 

The electric car company Tesla Motors is replacing its current CEO Ze’ev Drori with current Chairman Elon Musk, in what seems seems to be a move to not only re-structure the company, but become cash flow positive.

Although there were some reports that Tesla might layoff as much as 50 percent of its staff, the percentage is not that high, a company representative said.

Tesla seems to have had a rocky history for its top managers. Former CEO Martin Eberhard was forced out last year by Musk after production delays.





In an internal Tesla Forum post, entitled “Extraordinary times require focus”, Musk stated:

“One of the steps I will be taking is raising the performance bar at Tesla to a very high level, which will result in a modest reduction in near term headcount. To be clear, this doesn’t mean that the people that depart Tesla for this reason wouldn’t be considered good performers at most companies – almost all would.”

“However, I believe Tesla must adhere more closely to a special forces philosophy at this stage of its life if we aspire to become one of the great car companies of the 21st century. For this critical phase of the company, the scope of my role at Tesla will expand from executive chairman and product architect to CEO. With SpaceX now having reached orbit and about to enter its third year of profitability, I can afford to increase time allocated to Tesla.”

“We are not far from being cash flow positive, but, even if that threshold ends up being further than expected, I will do whatever is needed to ensure that Tesla has more than sufficient capital to get there.”

Musk finished his statement by saying “I’d like to thank the loyal customers of Tesla that have stood by us through thick and thin. Beyond delivering a great Roadster, Tesla will find other ways to reward that loyalty, including among other things an exclusive preview of our upcoming Model S sedan.”

Photo courtesy Voetmann via Creative Commons

Source CNET





About the Author

Adam Shake works in Washington D.C. and spends most of his recreational time hiking and kayaking in Virginia and West Virginia with his wife Laura and their 6 year old Rhodesian Ridgeback, Katahdin. Adam is dedicated to the Environment and maintains a website at www.twilightearth.com

  • kerry bradshaw

    What’s funny about all this is that the low productionTesla is nothing much other than a conversation pices. Talk about any contribution this car might make towards anything is an inside joke to

    those who can count.

  • kerry bradshaw

    What’s funny about all this is that the low productionTesla is nothing much other than a conversation pices. Talk about any contribution this car might make towards anything is an inside joke to

    those who can count.

  • steve shurts

    I agree with Kerry. While the Tesla is a beautiful automobile, as a replacement for “masses”, it’s cost makes it a non-starter. Too bad — it’s a great piece of engineering that has been driven by the greed of it’s creators.

  • steve shurts

    I agree with Kerry. While the Tesla is a beautiful automobile, as a replacement for “masses”, it’s cost makes it a non-starter. Too bad — it’s a great piece of engineering that has been driven by the greed of it’s creators.

  • Carbon Buildup

    Adam, I really need to complain about your grammar. You misused apostrophes over an over in this story, and it drives me crazy to read your stuff when you do this. The contraction “it’s” mean “it is” or “it has,” it is not possessive. Also, your articles always leave me hanging. Can you write a conclusion or some analysis to wrap the whole thing together? Sorry to be a pain, but these issues really do bug me.

  • Carbon Buildup

    Adam, I really need to complain about your grammar. You misused apostrophes over an over in this story, and it drives me crazy to read your stuff when you do this. The contraction “it’s” mean “it is” or “it has,” it is not possessive. Also, your articles always leave me hanging. Can you write a conclusion or some analysis to wrap the whole thing together? Sorry to be a pain, but these issues really do bug me.

  • Carbon,

    I apologize. I have done an edit and a small wrap up statement by the new CEO.

    I appreciate the comment. As a writer, I’m gad that readers are involved enough to point these things out.

    Thanks,

    Adam

  • Carbon,

    I apologize. I have done an edit and a small wrap up statement by the new CEO.

    I appreciate the comment. As a writer, I’m gad that readers are involved enough to point these things out.

    Thanks,

    Adam

  • drivin98

    Just to counter “Kerry Bradshaw”, who is really Kent Beuchert and who also posts EV-negative comments under Tom C Gray, Bike45 etc., it should be pointed out that Tesla never meant for the Roadster to be the environmental saviour of the world. It’s meant as a sports car with a relatively small carbon footprint as compared to gas-powered vehicles of a similar nature. The company hopes this car and the technology it promotes will lead to low-carbon cars for the masses and indeed it has been said that it is this car that inspired bob Lutz to pursue making the Volt.

  • drivin98

    Just to counter “Kerry Bradshaw”, who is really Kent Beuchert and who also posts EV-negative comments under Tom C Gray, Bike45 etc., it should be pointed out that Tesla never meant for the Roadster to be the environmental saviour of the world. It’s meant as a sports car with a relatively small carbon footprint as compared to gas-powered vehicles of a similar nature. The company hopes this car and the technology it promotes will lead to low-carbon cars for the masses and indeed it has been said that it is this car that inspired bob Lutz to pursue making the Volt.

  • Savantster

    I find it odd that a niche car is being bashed because the average Joe won’t be able to buy one.

    So, then, do you also bash Lotus because it’s not a massively powerful car for the masses?

    All progress has to start some place. If Tesla can show that an ELECTRIC car can compete with the high performance gasoline cars, doesn’t that at least do _something_ to forward the cause? .. I think it does.

  • Savantster

    I find it odd that a niche car is being bashed because the average Joe won’t be able to buy one.

    So, then, do you also bash Lotus because it’s not a massively powerful car for the masses?

    All progress has to start some place. If Tesla can show that an ELECTRIC car can compete with the high performance gasoline cars, doesn’t that at least do _something_ to forward the cause? .. I think it does.

  • michael

    The car broke ground and made the new LION technology practical and acceptable. It is the first decent transportation idea of the 21st century. Those who can’t see that are idiots.

  • michael

    The car broke ground and made the new LION technology practical and acceptable. It is the first decent transportation idea of the 21st century. Those who can’t see that are idiots.

  • bruce

    I drive by the Tesla showroom in Menlo Park CA all the time. When I saw the car I realized it was very very small. Just down the street is the Ferrari/Maserati dealership, the Tesla is just too small, it looks like a go cart. I know it can GO, but the price, the wait, this is not a good use of the technology. Very nice engineering, but no dice.

    I think part of the problem with corporations these days and I even think it contributed to the global meltdown is that everything is done for the greatest profit. Not bad in itself, but electric cars should be available now. We have a major problem with oil if anyone has not noticed.

    So, like if I want to buy a car that uses electricity and saves gas I have to pay more for the privilege. Huh? I save more in lower maintenance costs … the company raises the price instead of selling it for less.

  • bruce

    I drive by the Tesla showroom in Menlo Park CA all the time. When I saw the car I realized it was very very small. Just down the street is the Ferrari/Maserati dealership, the Tesla is just too small, it looks like a go cart. I know it can GO, but the price, the wait, this is not a good use of the technology. Very nice engineering, but no dice.

    I think part of the problem with corporations these days and I even think it contributed to the global meltdown is that everything is done for the greatest profit. Not bad in itself, but electric cars should be available now. We have a major problem with oil if anyone has not noticed.

    So, like if I want to buy a car that uses electricity and saves gas I have to pay more for the privilege. Huh? I save more in lower maintenance costs … the company raises the price instead of selling it for less.

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