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