Tesla Motors replaces CEO, plans layoff
Ze'ev Drori is joining the board, Elon Musk the Chairman of the Board is now the CEO. They're doing this to become 'cash flow positive' which doesn't mean profitable just means they've got more coming in than is going out.
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.
Extraordinary times require focus
...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. ...