Tesla Feels Credit Crunch

Tesla Feels Credit Crunch
Add Tesla Motors to the list of car companies buffeted by the financial crisis.



The San Carlos-based maker of the all-electric, $109,000 Roadster said today that it was removing its chief executive, delaying production of its model S sedan, closing offices in Michigan and London and laying off an unspecified number of employees in response to a tight credit market.

According to Darryl Siri, Tesla's head of marketing and sales, the company will focus on cutting overhead on the Roadster. "The idea is that because of the fundraising environment and capital markets, we're going to focus on making the Roaster a positive cashflow core product."

Siri said that the number of layoffs has not been finalized, because it was unclear how many employees from its offices in Rochester Hills, Mich., and England would be absorbed into the Northern California headquarters.

The company's CEO, Ze'ev Drori, has been replaced by chairman Elon Musk, according to Siri and a blog item posted by Tesla on its site today. Drori was hired less than a year ago to fill the CEO job, but will remain as vice chairman of the company.

More news as it breaks on this story.

-- Ken Bensinger
http://latimesblogs.latimes.com/uptospeed/2008/10/telsa-musk-ev.html

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If only I could buy a Roadster! I'd love to help them out (seriously).

Ever since the first guy was booted, though (I don't remember his name) the company just didn't have the same FEEL to it. I think Elon Musk was focusing more on his space ship project, if I'm not mistaken.

I wish them well.

I can't afford a Whitestar, but I was still hoping they'd make it onto the market next year as scheduled. That seemed like it was going to be such a kick-ass car, particularly if what they were talking about with the range extender worked out well. Grr.

I had no idea he was in the picture.

Also the guy who pushed Tesla's real founder out of the company, unfortunately.