Tesla Layoffs and Management Changes

Chris H. · 10-14-2008, 03:13 PM

Earlier today Martin, or somebody claiming to be Martin, made this post on the Tesla Founders blog:

"Seems like more cabbage is going down at Tesla right now. Big cabbage, so it seems."

Martin, was this yours? If so, is it possible that you can elaborate? If not, then I'm sorry for making a fuss over nothing.

ATB,

Chris.

vfx · 10-14-2008, 03:51 PM

The next message says:

Hi Martin,

could you possibly elaborate?

ATB,

Chris.

Martin sez:

The company’s new CEO is “holding people accountable at all levels, and that starts at the top.” -Darryl Siry, Venture Beat, 11 January 2008

Comment by Chris Harvey October 14, 2008 @ 2:14 pm

jsnable · 10-14-2008, 07:46 PM

Pure rumor, but:

Rumormonger: Tesla said to lay off 100

dpeilow · 10-15-2008, 03:13 AM

Autocar - Tesla in trouble?

Quote:

According to reports from America, Tesla Motors is laying off 100 staff, more than half of its workforce, as a result of the global financial crisis.

The fledgling electric car company’s CEO Ze’ev Drori is also said to be leaving.

DDB · 10-15-2008, 03:42 AM

Sooner or later the financial mess was going to affect Tesla--I just figured later because the immediate concern seemed to be producing the Roadster for current customers who plucked down the cash. Although it's clear that a whole lot of capital (and credit) would probably be needed for its new plant for Whitestar. If it's true, Tesla will not be able to keep a lid on 100 employees leaving...and MANY would-be customers would be hesitant to put deposits on a car when the Company may not be around in a year. Tesla can probably count on oil going above $80 shortly, which may help.

graham · 10-15-2008, 06:04 AM

The Tesla Death Watch weighs in:

Tesla Death Watch 23: Tesla In Trouble. Or Not. | The Truth About Cars

Quote:

As much as I’d like to join the rest of the autoblogosphere and simply repeat the news that Tesla’s about to terminate 100 employees and maybe their CEO (named after an Isaac Asimov character) and then say “I told you so,” I can’t. As far as I can tell, it’s nothing but a rumor. I’ve managed to trace back the report to Jalopnik, that links to a tiny item on the affiliated Valleywag website. “In our inbox, rumor of a staggering blow to one of Silicon Valley’s new growth industries: Tesla Motors, a tipster tells us, is laying off 100 people, about half of its staff. CEO Ze’ev Drori is also leaving, he claims.” The fact that Tesla hasn’t moved to squash this report, which has already circled the globe, shows that either it’s true or untrue (and someone at Tesla really needs to set a Google alert). I’ll go out on a limb and call bullshit. As long as Tesla has such a high media profile, this PR scam conmpany has a lot more mileage left in it. For which the Lord has made us truly grateful.

malcolm · 10-15-2008, 07:09 AM

I imagine that Zeev is quite keen to get back to enjoying his retirement - his departure could have been planned for a while now.

Or is he being 'Transitioned to the Tesla Retirement Home'?............

WarpedOne · 10-15-2008, 07:37 AM

Elon new CEO?
It could be funny but it's just sad.

vfx · 10-15-2008, 09:01 AM

Wow, a car company with the uncertainty of a Political campaign.

graham · 10-15-2008, 09:22 AM

Well, it has to be pretty difficult for them cash-flow wise. I assume all the deposit money they have taken in has been used for operating expenses to get them this far. So they now need to find money to build the cars already paid for, and set up the logistical nightmare of getting all the parts to the right place at the right time which I am sure costs more up front.

They received money in 2006-2007 for the cars they are building now. So the cars they have built thus far they have gotten no current money for. They have to pay for the parts to build at least 100 more cars before they start getting in any new money at all... and then it will be only be half the cost of the parts to build it for another several hundred cars. Eventually they will get to the point where the money paying for the car will actually pay for the car instead of for keeping the company afloat while designing the car... but they have a large amount of expenditures before they get there.

They have a bunch of new money coming in from the state and from San Jose, but that is all earmarked for the Whitestar stuff. Getting there will be hard unless they can squeeze out enough money to get to the Roadsters which actually bring in new money.

I can see them laying off half the company to get to that point, and then hiring the positions back next Spring/Summer when they have a revenue stream.