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.
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!
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.”