RSS RSS Twitter Twitter
Leftlane - news, reviews, and info for the auto-industry
 
 

Tesla to close Michigan R&D center

10/16/2008, 12:42 PM

By Andrew Ganz

Tesla, the California-based electric automobile manufacturer, isn’t a company we’d expect to be struggling in these days where $3-a-gallon gas seems like a bargain. After yesterday’s layoff report and changing of leadership, we’ve learned that Tesla will be closing its 30-employee research and development facility in Rochester Hills, Michigan.

Billed as a boon for the Detroit area when it was opened in January 2007, the facility’s closing is part of Tesla’s cost-reducing measures. The company hasn’t announced a closing date for the center.

Tesla says it will be focusing on its two revenue-producing businesses, the electric Roadster, which is currently being produced, and sales of electric powertrains to other companies.

It remains to be seen exactly how the closing will impact Tesla’s future vehicle offerings. The company already announced that its Model S sedan plans have been delayed due to tightening economic circumstances, which means the company’s ‘everyday’ $30,000 sedan has probably been put on hold, too. Tesla was also planning pickup truck and minivan models, but those too have undoubtedly put on hold.

New car price quote

Zero obligation price quote from a trusted local dealer.
 
 

10/16, 12:46 PM

posted by:

johnnycanuck

Damn, I guess I might have to go back to licking Duracells.

10/16, 1:05 PM

posted by:

rds130

This is the nature of the business. They may be tech geeks and car guys but they clearly have no concept of how large scale international business works, particularly where sustainability is concern. I think this is something almost every company has to learn. Quite frankly, much like Lutz and the Volt, I think they should’ve kept their mouths closed until they were closer, but then again, much like Lutz and the Volt, a lot is riding on Tesla’s technology being viable, sustainable, reliable and affordable sometime in the (near) future. Tesla, however, has the opposite job of gathering consumer and director-interest. GM has the more difficult job of keeping it in turbulent times when everybody’s a skeptic. I’d like to see them both weather this storm and come out stronger on the other end of the tunnel.

10/16, 1:29 PM

posted by:

crackerhemi

Having an R&D facility in Michigan is an oxymoron. Everyone knows that no one in Michigan has a masters, or even a bachelors degree. How can you do R&D with only a high school education?

10/16, 4:30 PM

posted by:

Spingood Tanoya

Tesla’s starting to look more like Tucker every day. Build a few technically advanced prototypes, make a handful of “production” vehicles that run into a variety of issues that delay mass production (e.g. transmissions), wow the press with what’s coming “real soon now,” and then keep delaying…and postponing…and rearranging the Titanic’s deck chairs.

While I’d like to see Tesla start making cars that real people can buy, I wouldn’t be surprised to see them eventually give up on manufacturing and instead license whatever technology they own to other manufacturers.

10/16, 6:35 PM

posted by:

Blakkarr

Spingood Tanoya,

I wholly agree.

“I travails of a young automaker continue.”

They might have more luck in the EU than the US right now though, unfortunately.

10/16, 7:05 PM

posted by:

sudo95

They closed this R&D because Chrysler showed off those 3 e-models that are extremely similar to what they were going to offer. It’s too bad they realized that they couldn’t even compete with the smallest of the big 3 when it comes to validating a electric car for everday use. I really would’ve liked to see a small company go up against the giants.

The resources of a struggling company are still to be reckened with.

10/16, 9:14 PM

posted by:

deutschetouring1337

Egh your wrong there IDS niche markets will always thrive with enough people. To be honest I’d rather have a Venturi Fetish, or even a Lotus Clone using the Elise chassis.

10/17, 11:16 AM

posted by:

BMW M1

hahahah, alright cancuk u win! :D

10/17, 11:17 AM

posted by:

BMW M1

oops canuck

10/18, 5:42 AM

posted by:

The Stig

Tesla’s next car will be called “mams skyward.”

 
 
You need to log in with your user name and password before you can leave comments.

    

Forgot your Password?


Don't have a user name yet? Simply fill in the form below and click the link provided in the
confirmation email. You must supply a valid email address to complete the registration process.

  
 
 
 
 
  • Login
  • About
  • Contact
Please note that you need to log in with your user name and password before you can leave comments.
  

login
cancel
Forgot your Password?
Don't have a user name yet? Click here to register now.

Simply fill in the form below and click the link provided in the confirmation email. You must supply a valid email address to complete the registration process.

  
submit
cancel
Leftlane is the leading source for automotive industry and vehicle news, new car research, future vehicle information, and reviews. Read by car shoppers, driving enthusiasts, autoworkers, executives, and investors, the website is updated throughout the day with the very latest auto news - as it happens.

Leftlane also provides consumers with accurate and media-rich information on every car currently on the market. In-market shoppers can review specs, read overviews, view high-resolution images, watch videos, and estimate pricing. No other automotive publication brings together the same degree of timeliness, thoroughness and accuracy as Leftlane.
 
submit
cancel