Thursday 16th October 2008

Update: Tesla Talks Layoffs

Tough times ahead but company remains confident

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New CEO Elon Musk

After a day of rumours and reports about the future of Tesla, the company has finally released an official statement. Via the company blog (this is a cutting edge company don’t forget) the new CEO Elon Musk has introduced himself.

It seems he will have to work fast to turn-around the firm – he’s the fourth CEO in 12 months – but has blamed the carmaker’s problems on the global economic crisis. Reports in the US suggested half the workforce are now out of a job but Musk claims there has been 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,’ he said. ‘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 21^st century.’

Previous CEO Ze’ev Drori will stay on the board of directors as vice-chairman and continue to help Tesla make decisions. The company has identified two key parts to its business - the Roadster and powertrain sales to other car companies – and these will be its priorities. Unfortunately this means the ‘Model S’, a larger electric car, will now be delayed by six months to mid-2011.

Despite tough times Musk remains positive: ‘The Tesla investors and I are unequivocally dedicated to ensuring the success of Tesla. If you have bought a car from Tesla or are thinking of doing so, please know that I personally stand behind delivering a product that you will love and continuing to develop new models in the future. 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.’

[Fetchez la vache]

Sorry but whenever I read anything about this company I always have this in my head... linky

[Fotofrog]

Fetchez la vache said:

Sorry but whenever I read anything about this company I always have this in my head... linky

+1

[Wilburo]

Good luck to them - this seems a very honest response, which fills me with confidence.

[Vesuvius 996]

Odd how when times get hard, suddenly being green is not quite at the top of the list for people.

[Fetchez la vache]

Vesuvius 996 said:

Odd how when times get hard, suddenly being green is not quite at the top of the list for people.

I'm asuming that that was said with tounge firmly in cheek, since other "green" and more expensive goods such as organic produce have taken a battering sales wise the last 6 months as people go for the cheaper options.

[dublet]

Why is the Tesla about being green? It's about new technology that goes much faster than internal combustion.

[CypherP]

I just want to know where this company finds their CEOs with the most obscure names imaginable.. I hope Mr. Musk keeps his word...

[ZesPak]

Vesuvius 996 said:

Odd how when times get hard, suddenly being green is not quite at the top of the list for people.

To quote the great JC:
"When you are forced to eat your dog to stay alive, it is very difficult to spare a thought for the polar bears and the cedar trees of Lebanon."

[Alex]

Impressive as it seems to be, the Tesla is an expensive toy with a very limited market.

[Spunagain]

"and powertrain sales to other car companies"

What's the betting there will be an electric Evora launched sometime soon?

[Don]

Impressive as it is. The Tesla Roadster is a marketing exercise.

It is only there to convince the big carmakers to licence electric technology from Tesla. Or even better - to buy Tesla outright to acquire the technology. The Tesla investors would then all do very nicely thank-you.

The car is only there for two reasons. First to fire the public imagination for electric vehicle technology. How better than to produce a superb looking "supercar" for the celebs to drive. Every time Clooney turns up at a do in his it will get column inches. Secondly to prove it can be done and is reliable enough to sell to the public.

If it doesn't succeed Ford or GM will buy them for peanuts and the shareholders will all lose their shirts. And Ford/GM will STILL aquire the technology. If it DOES prove reliable EVEN if they lose a fortune on every car then the sale to Ford/GM will be loadsamoney for the investors.

Good luck to 'em. Risky strategy.

[Don]

In any event expect all-electric vehicles from Ford/GM before long. Their major competition being Toyota.

[Mars]

CEO Elon Musk said:

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

I wonder who he had in mind when he said "almost".

[aerospoke]

For those who don´t know Mr Musk is co-founder of Paypal. So for him this is maybe a nice eco-hobby and he won´t be much poorer if it goes down. And he either just likes expensive business-ventures like SpaceX or is very farsighted investor.

Cheers Jens

[motormania]

aerospoke said:

For those who don´t know Mr Musk is co-founder of Paypal. So for him this is maybe a nice eco-hobby and he won´t be much poorer if it goes down. And he either just likes expensive business-ventures like SpaceX or is very farsighted investor.

Cheers Jens

Having this guy at the helm of your business means that Tesla is not high and dry. You may laugh at the name but this is one of the most successful business men of our time and he also heads up a Solar Power company so I see this as a very lucratic purchase from his perspective.

Yes the old Petrol Heads will never change, but in 50 years the world will be full of electric cars. Many laughed at the thought of the motor car, more so at the thought of standing on the moon.

I'm with those who firmly believe that Petrol is the old way and electric is the way forward now. Not for eco reasons as that is all just politcal BS, but purely on performance and ease of use.

Bring it on...

[fuoriserie]

Vesuvius 996 said:

Odd how when times get hard, suddenly being green is not quite at the top of the list for people.

I just thought the same thing.........

[rejn]

good luck to them.

I saw one of the road a couple of days ago in central London and it looked great.

Tough times for everybody over the next year or two, but I hope they pull through - I, for one, would love an electric sportscar soon!

[fuoriserie]

Don said:

In any event expect all-electric vehicles from Ford/GM before long. Their major competition being Toyota.

Pininfarna B0 in late 2009.......

http://www.edmunds.com/insideline/autoshows/paris/...

[Hedgerley]

Don't overlook the fact that Elon Musk is one of the original co-founders of Tesla and has sunk a big chunk of his own money into the company already - over $35m and counting. He obviously needs to protect his investment.........

[MarkRSi]

Fotofrog said:

Fetchez la vache said:

Sorry but whenever I read anything about this company I always have this in my head... linky

+1

haha I think thats a bit old for me, but I always think of these things when I hear of the company...

another linky

I wonder if they could fit one of those to their cars in the future...