Wednesday, October 15, 2008

Tesla Chops Staff, Musk Takes Wheel

High flying electric carmaker Tesla Motors is slashing staff, closing its Detroit offices, and has pulled in Elon Musk as CEO, the firm said today. Tesla is venture backed by Draper Fisher Jurvetson, Panorama Capital, Valor Equity Partners, VantagePoint Venture Partners, and others. Musk said on the firm's blog that the firm is hoping to be cash-flow positive within six to nine months, and will make a "modest" reduction in near tern headcount. Musk said that it will also move its vehicle engineering to San Jose, which means it will ramp down and close its offices near Detroit. The firm also said it will delay the start of production of the firm's Model S model to mid-2011.