Automotive Fleet
MenuMENU
SearchSEARCH

Electric Car Maker Tesla to Delay Next Model, Cut Workforce

SAN CARLOS, CA --- Electric car maker Tesla Motors, manufacturer of the battery-powered Roadster, said last week that market conditions and the current credit crisis have prompted production delays on its next-generation vehicle, the Los Angeles Times reported.

by Staff
October 20, 2008
2 min to read


SAN CARLOS, CA --- Electric car maker Tesla Motors, manufacturer of the battery-powered Roadster, said last week that market conditions and the current credit crisis have prompted production delays on its next-generation vehicle, the Los Angeles Times reported.

In addition, Tesla Motors will close two offices and have employee layoffs, the L.A. Times reported.

Ad Loading...

"At Tesla, we have decided that the wise course of action is to focus on our two revenue-producing business lines -- the Roadster and powertrain sales to other car companies," said Elon Musk, the company's chairman who is also assuming the chief executive post. "In the Roadster, Tesla has a unique product with a large order book that continues to grow, despite softness in the automobile sector. Our powertrain business is profitable today and is also growing rapidly."

Tesla's goal is to have a positive cash flow within six to nine months, Musk said. "To do so, we must continue to ramp up our production rate, improve Roadster contribution margin and reduce operating expenses," he said. "At the same time, we must maintain high production quality and excellent customer service."

The outgoing chief executive, Ze'ev Drori, will stay on as vice chairman.

Before delivering its first production Roadster in February, Tesla raised about $140 million, mostly from venture capital firms, the L.A. Times reported. But the credit crisis is taking a heavy toll on Tesla's plans.

"Tesla and about a million other companies are in the same place," Alexander Cappello, chairman and chief executive of investment bank Cappello Capital Corp., told the L.A. Times. "There's virtually no money available from banks. There's no money for buyouts. There's no money for issuing debt. There's just no money."

More Green Fleet

Sketch of chassis cab truck.
Green Fleetby Chris BrownMarch 9, 2026

Startup ZMD Motors Developing Electric Conversion for Ram 5500 Work Trucks

Detroit-based company says it has begun early development of a system to convert internal combustion Ram 5500 chassis-cab trucks to electric power.

Read More →
SponsoredFebruary 26, 2026

MOVING ON FROM DEBATE: A Guide for Fleet Managers Who Just Want To Get Electrification Done

Fleet managers are done with the debate—and focused on execution. Learn how to build a practical electrification strategy that aligns infrastructure, operations, and financing while keeping costs controlled and deployment scalable with support from Blink Charging. Discover how smart planning today positions fleets for long-term performance and ROI.

Read More →
EV charging symbol
Green Fleetby Chris BrownFebruary 12, 2026

U.S. EV Adoption Is Climbing, but Commercial and Passenger Markets Diverge

New industry group data revealed that light-duty electric vehicle sales are hitting record market share and volumes, while commercial EV volume dipped. What’s driving the fluctuations?

Read More →
Ad Loading...
SponsoredFebruary 6, 2026

Hybrids: Electrification Without the Challenges

For fleet managers, fuel is one of the biggest line items in the budget — and it's one hybrids can shrink without changing how your people work. Download the eBook to see the numbers, understand the technology, and get a step-by-step guide to making the switch.

Read More →
A side view of the yellow, blue, and red Slate Auto electric pick-up truck and SUV
Upfittingby Martin RomjueDecember 8, 2025

How To Upfit Electric Work Trucks and Vans

The biggest challenge lies in balancing additional equipment and accessories with EV battery capacity and range.

Read More →
Green Fleetby Martin RomjueDecember 4, 2025

How Fleets Can Adjust Approaches To EV Adoption

With the expiration of federal incentives, EV success now hinges less on government policy and more on discounts, battery tech progress, increased range, and broader infrastructure.

Read More →
Ad Loading...
Panelists on stage at FFC.
Fleet Forwardby Martin RomjueOctober 29, 2025

Despite World Troubles, Forward Thinking Guides Fleets

Fleet operators shared their challenges during an annual conference that embraced the latest advances across all aspects of running private- and public-sector vehicles.

Read More →
Illustration of GM Energy’s vehicle-to-home system showing an electric truck connected to home power storage, the grid, and GM Energy Cloud through the myOwner app.
Green Fleetby News/Media ReleaseOctober 28, 2025

GM Energy Details Partnerships and Targets for Public Charging Build-Out

EVgo, Pilot, ChargePoint and IONNA named; goal is 35k GM-invested DC stalls by 2030, with customer-experience upgrades at sites.

Read More →
Chart showing September 2025 EV sales. New EV sales totaled 147,716 units, up 44% year over year, and used EV sales hit 40,569 units, up 76%, marking strong third-quarter performance.
Green Fleetby News/Media ReleaseOctober 23, 2025

Q3 Electric Vehicles Sales Hit Record High

EV buyers took advantage of the final federal tax credit days, while average prices edged up for new EVs and continued to decline for used models.

Read More →
Ad Loading...
A green vertical bar graph chart showing the rises and dips in quarterly EV sales since early 2022.
Green Fleetby News/Media ReleaseOctober 10, 2025

EV Sales Hit Record in Q3 Before Incentives Expire

But most OEMs record low-volume sales, which means EV profitability remains a distant dream for nearly every automaker.

Read More →