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Tesla Shock: Financial Crisis brings New CEO, Layoffs and Delay of Model-S

Tesla Roadster The economic turmoil that has devastated the stock market is also battering Tesla Motors that is running dangerously low on cash. In a surprise announcement, the Silicon Valley-based firm's main investor, executive chairman and product architect (yep, all those together), Elon Musk said that he plans to take over the reigns from current CEO Ze'ev Drori who will remain on the board of directors as vice-chairman. Musk stated that in order for the company to stay afloat, there will be necessary job cuts and a delay of the production of the firm's forthcoming 4door sedan called Model-S . -Continued

Tesla CEO Musk "Our intention as a organization is to be coins-float high quality inside six to nine months. To achieve this, we must maintain to ramp up our production charge, improve Roadster contribution margin and decrease running expenses. At the same time, we have to keep excessive manufacturing first-rate and amazing customer support," Musk said in a announcement.

The employer's new CEO additionally decided that Tesla will attention on its two revenue generating business lines - the Roadster EV and powertrain sales to other automobile businesses, which means that everything else is on hold.

While Musk did no longer screen the exact quantity of layoffs, he did announce that a few headcount discount can be done due to consolidation of operations as Tesla will circulate its car engineering departments to its new HQ in San Jose, remaining the Rochester Hills workplace close to Detroit.

Tesla Roadster

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