Feeds

Layoffs, boardroom reshuffles at Tesla Motors

Elon Musk to take over directly as CEO

Intelligent flash storage arrays

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 In the next few hours Elon Musk, Tesla chairman, is expected to announce that he has formally superseded Ze'ev Drori as CEO.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. ®

Security for virtualized datacentres

More from The Register

next story
Boffins who stare at goats: I do believe they’re SHRINKING
Alpine chamois being squashed by global warming
What's that STINK? Rosetta probe shoves nose under comet's tail
Rotten eggs, horse dung and almonds – yuck
Comet Siding Spring revealed as flying molehill
Hiding from this space pimple isn't going to do humanity's reputation any good
Experts brand LOHAN's squeaky-clean box
Phytosanitary treatment renders Vulture 2 crate fit for export
Kip Thorne explains how he created the black hole for Interstellar
Movie special effects project spawns academic papers on gravitational lensing
LONG ARM of the SAUR: Brachially gifted dino bone conundrum solved
Deinocheirus mirificus was a bit of a knuckle dragger
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
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.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.