Tesla Layoffs and Management Changes

[bill]

Tesla's Future

<<<<< The Tesla investors and I are unequivocally dedicated to ensuring the success of Tesla. If you have bought a car from Tesla or are thinking of doing so, please know that I personally stand behind delivering a product that you will love and continuing to develop new models in the future. >>>>> Quote from Elon


After a string of failures Elon stated very strongly that he was standing squarely behind Space X. It now appears that they have turned the corner. Now, he is showing the same spirit at Tesla.

I realize that he has received a lot of criticism on this site, however, looking down the barrel of a steep recession, I believe his dogged determination and persistence is just the leadership Tesla needs to survive and prosper.

 

[thejump]

I don't think that's right. They have about 900 customers who have production sequence numbers, meaning they have put down more than the $5,000 initial deposit, plus somewhere around 300 more who have made just the 5k deposit. If we assume an average deposit of 60k, that works out to 900*60k+300*5k = $55.5 million, plus or minus $10 million.

Tomsax - You're assuming that the down payment from the 900 customers hasn't already been spent trying to keep the company afloat. Why do you think the money's still there?

 

[dpeilow]

Tesla cancels new model, fires CEO, will lay off large part of workforce

 

[graham]

Wow... a whole bunch of wrong in this article. Who is this person who is apparently paid to rant so many factual inaccuracies and specious correlations?

My favorite part was this though:

...Elon Musk, the founder who got rich on Papal should know...

Apparently, Elon is Catholic!

 

[dpeilow]

I made a comment - it hasn't appeared yet.

If you read some of his other postings, you will see he is anti-electric, anti-solar and ex-Detroit (even anti-LED lighting).

 

[graham]

Commentary on the commentary. Does that mean we have now gone Meta?

Bloggers Castigate Tesla Motors for "Militant" Management Style After Fresh Shakeup

The Monday-morning quarterbacks were out in full force in the wake of Tesla Motors' announcement on Wednesday that it is delaying the production of its Model S sedan until mid-2011, laying off staff and closing its vehicle engineering office in Rochester Hills, Michigan. Chairman Elon Musk is also assuming the CEO duties of Ze'ev Drori in a fresh management shakeup at the electric start-up that manufactures the Tesla Roadster.

 

[tomsax]

Tomsax - You're assuming that the down payment from the 900 customers hasn't already been spent trying to keep the company afloat. Why do you think the money's still there?

I'm not assuming anything.

My post was in response to an earlier post that seemed to assume that Tesla has spent all of that money. My post just pointed out that Tesla has other, larger, sources of capital and thus could have done as much as they have without spending some big chunk of the owner deposits.

If you read the rest of my post, I make it pretty clear that I don't assume they haven't spent the deposits, but I think they are smart enough to not be in that situation.

 

[dpeilow]

Tesla axes jobs, temporarily clamps 'affordable' electric car | Register Hardware

The Google Alert for this said "Tesla axes 250 jobs, temporarily clamps 'affordable' electric car"

250? It seems to have been rewritten in the meantime - do they even have 250 jobs to axe?

 

[doug]

Jalopnik is based in Detroit.

Financiapocalypse: Automaker Lays Off Detroit Office With Blog Post

Tesla Motors: Tesla To Finally Notify Detroit Workers Today They Were Laid Off Two Days Ago

We're hearing that approximately 90% of the office was simply let go, and the remaining employees have to make their way to the San Jose headquarters with no moving costs covered, no increase in salary and no help getting rid of their old homes. Fortunately, the real estate market in Detroit is red-hot, and the cost of living is about the same in San Jose.... right?

 

[tomsax]

I'm getting bored with reading the same angle on Tesla's recent news over and over.

Here's my take:

Tesla Motors - Its's not just the economy, stupid! - Tom's Blog

Was anyone else surprised to hear they are already making a profit on selling their powertrain to other car companies?

 

[graham]

This is great blog post, Tom. And a good point about the power train issue. I hope they get to elaborate on that part of the business soon.

 

[dpeilow]

How about this?

Tesla Tastelessly Tosses Their Team : Boy Genius Report

Electric Car: Tesla Lays off 90% of Detroit Staff in Douchey Way

 

[vfx]

H
Tesla Tastelessly Tosses Their Team : Boy Genius Report

Electric Car: Tesla Lays off 90% of Detroit Staff in Douchey Way

More dazzling PR.

 

[malcolm]

Thanks for the point about the powertrain side of the business Tom. It is a shame that the original T.E.G. was a great idea before it's time.

I realize that he has received a lot of criticism on this site, however, looking down the barrel of a steep recession, I believe his dogged determination and persistence is just the leadership Tesla needs to survive and prosper.

I agree. History tends to gloss over the fact that many great achievements are accomplished by difficult individuals.

We want to have our cake and eat it - we want Tesla to survive and yet we want the company to eschew the hard-nosed practices of American business.

 

[dpeilow]

Here's a report that seems to be a distilled version of this whole thread:

BetaNews | Green-vehicle manufacturer Tesla does dirty by its staff

 

[vfx]

Tesla does dirty by its staff

Breathtaking HR too.

 

[DaveD]

Breathtaking HR too.

Has anyone seen an article with a substantiated source quoted in it, regarding Tesla's notification of the Michigan staff? I've read all the articles that I can find about this, and so far have only found an "anonymous Telsa source" referenced in one of the articles. I'm not saying that the story being reported is incorrect, but I'd like to see more sources before I take these articles/blogs at face value.

 

[graham]

I have not seen anything more substantial. Every report seems to refer that one original report.

I did talk to some Tesla employees (in California) late Wed night. They told me there was to be a big company meeting on Thursday morning where Elon was supposed to better detail the plans for the future. I bet a lot of people got officially informed then or soon thereafter.

 

[mittelhauser]

I have no details on the handling of the MI office but the California Tesla folks I talked to in the last two days actually thought that this layoff was handled better than the last one. They appreciated that it was all done in one fell swoop upfront rather than having a long stretch of days/weeks where everybody was going in and not sure if they were going to find a pink slip.

 

[TEG]

This old article (January 2008) had been rather critical of what happened before.

Really unfortunate to see more of this. We all want to see them GROW and prosper not have to "hunker down".