Tesla Motors replaces CEO, plans layoff

Tesla last month said it intends to make a $250 million investment to construct a corporate headquarters and facility to manufacture its Model S all-electric luxury sedan, which is due in late 2010. But the economic downturn will mean that the start of production of the Model S will be pushed back until mid-2011, Musk said Wednesday.

...At Tesla, we have decided that the wise course of action is to focus on our two revenue producing business lines - the Roadster and powertrain sales to other car companies. In the Roadster, Tesla has a unique product with a large order book that continues to grow, despite softness in the automobile sector. Our powertrain business is profitable today and is also growing rapidly....The net result will be a delay in start of production of the Model S of roughly six months to mid-2011. On the plus side, we will spend the extra time refining the vehicle design and powertrain technology, so the car will end up being slightly better. ...