Feeds

Layoffs, boardroom reshuffles at Tesla Motors

Elon Musk to take over directly as CEO

Choosing a cloud hosting partner with confidence

Rumours of layoffs and management reshuffles at Tesla Motors - maker of the famous but as-yet-scarce Roadster electrosupercar - have been confirmed. In the next few hours Elon Musk, Tesla chairman, is expected to announce that he has formally superseded Ze'ev Drori as CEO. Details of "strategic layoffs" will also be revealed.

A Tesla representative confirmed the moves to the Reg this afternoon. It appears that Mr Drori will remain at Tesla, assuming the title "vice chairman" and remaining on the board, while Mr Musk assumes even greater day-to-day control of the firm.

Rumours had been circulating all day that changes at Tesla were afoot, with suggestions made that 100 employees might be let go in California - as much as half the existing staff. Mr Musk is expected to go into some detail on the corporate blog network as to just who will be departing, but the Reg was told that the higher figures are "grossly exaggerated". The layoffs are said to be "in response to the global liquidity crisis".

Tesla would certainly appear to be vulnerable to the credit crunch and general feeling of unease. The firm has ambitious plans, with a new model set to go into production, but has so far delivered just forty cars - and these have "intermediate" transmissions, unable to achieve the promised performance which Roadster buyers have paid high prices for.

Tesla has pledged to replace these transmissions at no further charge, which could easily wipe out much of the profit made on early deliveries. Meanwhile, the current tally of orders for the Roadster stands at just 1200.

As for the boardroom reshuffle, this may be no more than an acknowledgement of reality. Elon Musk is well known to be an extremely hands-on company chairman at Tesla, even to the extent of personally designing bodywork. As the main money man behind the company, his job - and that of any other Tesla employee - is pretty much whatever Mr Musk says it is. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
GRAV WAVE DRAMA: 'Big Bang echo' may have been grit on the scanner – boffins
Exit Planet Dust on faster-than-light expansion of universe
Mine Bitcoins with PENCIL and PAPER
Forget Sudoku, crunch SHA-256 algos
SpaceX Dragon cargo truck flies 3D printer to ISS: Clawdown in 3, 2...
Craft berths at space station with supplies, experiments, toys
'This BITE MARK is a SMOKING GUN': Boffins probe ancient assault
Tooth embedded in thigh bone may tell who pulled the trigger
DOLPHINS SMELL MAGNETS – did we hear that right, boffins?
Xavier's School for Gifted Magnetotaceans
Big dinosaur wowed females with its ENORMOUS HOOTER
That's right, Doris, I've got biggest snout in the prehistoric world
Japanese volcano eruption reportedly leaves 31 people presumed dead
Hopes fade of finding survivors on Mount Ontake
That glass of water you just drank? It was OLDER than the SUN
One MEELLION years older. Some of it anyway
Canberra drone team dances a samba in Outback Challenge
CSIRO's 'missing bushwalker' found and watered
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.