High-profile electric car maker Tesla Motors announced yesterday that Chairman of the Board Elon Musk will take over as CEO of the company, as it strives to become "cash flow positive" over the next six months.
To reach that goal, Musk, who was a co-founder of PayPal and SpaceX, said on his company blog that Tesla will ramp up its production of Roadsters and slow down development of the Model S sedan.
Musk also said there will be a reduction in staff as the company closes its Detroit office to consolidate engineering at Tesla’s new headquarters in San Jose.
Musk asserted that deliveries of the $100,000 Roadster will continue on schedule, but development of the Model S, which is expected to be less expensive, will slow until the company receives a loan from the U.S. Department of Energy, expected in 2Q09.
Ze’ev Drori who has been CEO of Tesla for the last year will remain on the board.
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