<![CDATA[Gawker: valleywag, ze'ev drori]]> http://tags.gawker.com/assets/base/img/thumbs140x140/gawker.com.png <![CDATA[Gawker: valleywag, ze'ev drori]]> http://gawker.com/tag/valleywag/zeevdrori http://gawker.com/tag/valleywag/zeevdrori <![CDATA[Elon Musk blames past CEOs for Tesla's failures]]> To anyone familiar with Elon Musk's brief, troubled career as CEO of PayPal, the troubles at Tesla Motors, his electric-car startup, seem all too predictable. As does his spin on his decision to lay off dozens of employees, close Tesla's Detroit office, postpone a new model, and replace Ze'ev Drori as CEO. Musk blames past CEOs — chiefly cofounder Martin Eberhard — for the company's current troubles.

“It’s taken us about a year to correct major errors,” Mr. Musk told the New York Times. Eberhard has a snappy response: “Look at the constant factor at the company through all the years: Elon.” A history lesson from PayPal: Not until Peter Thiel replaced Musk as CEO, and he ceased day-to-day involvement with the company, did it thrive. (Photo by Peter DaSilva/New York Times)

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<![CDATA[A Peek Inside The Soon-To-Be-Dead Tesla Motors Detroit Office]]> Given the situation with Tesla Motors lately, you know, Ze'ev Drori getting the boot and Elon Musk taking the reins as CEO, word of firings of "25-30% of their total staff of 300 employees and contractors" and the closing of the Detroit location (more accurately, the Metro Detroit suburb of Rochester Hills, MI) via blog post, it's no wonder an anonymous reader decided to head out to their Rochester Hills office and take a look. The Rochester Hills facility was opened at the end of January 2007, and was to be the development facility for the Tesla Model S electric sedan, so the closing is a foreboding indicator of the future direction Tesla is heading on that project. Let's take a look inside this essentially doomed location...

To be fair, these pics were taken this past Sunday, so it's poor evidence the place is in fact a ghost town but let's just say a tumbleweed rolling through the parking lot wouldn't be out of place. Aside from the fancy sign out front and the etched glass doors, it looks like every other sparsely decorated suburban office we've ever seen.

We love the reading materials in the lobby — all the buff books, plus Vanity Fair, a book on classic cars, The Toyota Way and its wonderful explanation of "lean manufacturing" and the Toyota Production System (may we also recommend Machine That Changed The World and the End of Detroit). TPS, as you know, is the management process where a company welcomes questions and seeks to solve problems via all manner of available help. Openness and communication is key with TPS. Hmm, maybe they only got through the first couple of chapters.

Hilariously, our two favorite books laying around have to be the Tesla bio on the waiting room table sitting across from The Car That Could, a book about the life and death of GM's EV1. We'll let you draw your own conclusions from that one.

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<![CDATA[Ze'ev Drori out, Elon Musk in as Tesla CEO]]> Here's the narrative you're going to hear about Tesla Motors, the Silicon Valley electric-car company which is prepping layoffs and replacing its CEO: The company's founding investor sweeps in to save the day. It is true that Elon Musk, the company's main financial backer, is stepping in to replace CEO Ze'ev Drori, who's staying with the company as vice chairman and a member of the board. But anyone with a sense of history should be very worried at the prospect of Musk taking the wheel.

Musk lucked out twice, with the $300 million of a long-forgotten Internet portal, and the survival, despite his best efforts, of PayPal, the payments site now controlled by eBay. According to Elon Musk, Elon Musk was the driving force behind PayPal during his brief, tumultuous reign as CEO of the payments company. Musk's version of events is a fiction believed by no one else. I know this because I spoke to PayPal insiders regularly while he was CEO, and they told me of chaotic management, boneheaded marketing and technology decisions, and serious turnover under Musk's reign.

That is what Tesla has to look forward to. In some sense, it's already been enduring it since Musk ousted founder Martin Eberhard and replaced him with Drori last year. Musk has been working at the company for several days a week, Darryl Siry, Tesla's VP of marketing, tells me, in an effort to portray Drori's beheading as some kind of smooth transition.

With a parlous economy, Tesla was already in for a bumpy ride. Musk is keeping his second job as CEO of SpaceX, a private rocket company which has seen several botched launches. Add to that the infamous tale of his PayPal-era car crash, and you've got an entrepreneur who's better known for destroying vehicles than building them.

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<![CDATA[Tesla "refocusing"]]> In our inbox, rumor of a staggering blow to one of Silicon Valley's new growth industries: Tesla Motors, a tipster tells us, is laying off 100 people, about half of its staff. CEO Ze'ev Drori is also leaving, he claims. Update: Tesla VP Darryl Siry called Wednesday morning to tell us that the number our tipster supplied is "exaggerated" and that the company is "refocusing" to get through "a tough nine months." Sad: A few years ago, electric-car enthusiasts talked up the Valley as the new Detroit, home to a vibrant new automotive economy. Last month, Tesla had set plans for a $250 million electric-car factory in San Jose, along with a new headquarters.

But autos are an expensive business, thoroughly dependent on free-flowing credit for their manufacture and sale. Tesla's high-end electrics, a status symbol in good times, now seem excessive; who wants to drive a $109,000 car into a half-empty parking lot? Siry says that the company's moves aren't driven by demand, which remains healthy.

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<![CDATA[Tesla's $250 million manufacturing plant to park in San Jose]]> Tesla Motors plans to break ground on a 600,000-sq. ft. factory on an 89-acre plot of land in San Jose, according to company officials. The electric-car manufacturer is banking on $250 million in financing from Goldman Sachs and the Department of Energy to build the facility, on top of the $15 million or more in tax breaks California governor Arnold Schwarzenegger offered to keep the company in California. Tesla is currently only producing 10 of the company's signature roadster coupes a week in England and California, with a list price of $109,000. CEO Ze'ev Drori says new plant will be initially capable of producing around 300 a week of the Model S sedan planned for introduction in 2010. How many "green collar" jobs will the project create?

San Jose Mayor Chuck Reed told the New York Times 1,000, but the company suggests the factory will only employ 400 to 500 says the Wall Street Journal, with 250 current employees moving to the new headquarters once complete. Contrast that to General Motors and Toyota's joint-venture Nummi plant in Fremont, Calif., which employs about 5,500 workers. (Photo by Emil Rensing)

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<![CDATA[Martin Eberhard Is Out At Tesla Motors, And Whitestar Electric Sedan Dead on Arrival]]> So we may have been a little bit late to the table with the news that Martin Eberhard is out like a dead bulb as CEO of Tesla Motors, everyone's favorite electric car company that's not yet delivered any electric cars. We did report they'd installed Ze'ev Drori as the new CEO, so we guess we brought something to the game. But now we've got word from a couple of very reliable sources that the problems with the roadster's causing some serious problems elsewhere in the company. Full and very quick report from our tipster after the jump.

"Tesla's Whitestar and Darkstar programs are DOA. The Detroit office is in trouble. it's all hands on deck to get the roadster to work"
Yeah, well, we kinda saw this one coming, we just kinda hoped it wouldn't happen.]]>
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<![CDATA[Former Racer In as Tesla Chief]]> Whether it's shuffling the deck chairs on the Titanic or a key decision that's going to suddenly make everything better is unclear, but at least Tesla Motors is trying to fix things by appointing Ze'ev Drori as C.E.O. Mr. Drori has twice turned around smaller companies, leading them to buyouts by major competitors. He's also apparently done some competitive racing (though nothing major that we can find).

With Tesla still having problems with delays and a growing list of people who want their product, a little shakeup at the top could be taken as a sign that this is a company with a future and not another niche carmaker disaster waiting to happen. (h/t Jared)[NY Times]

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