Tesla Motors said today that it plans to close a research and development center in Rochester Hills. The center was hailed as an important economic development win for Michigan less than two years ago.
Tesla Chairman Elon Musk posted a statement on the company’s Web site today saying that Tesla is not immune from the nation’s economic woes and is taking action so it can become cash-flow positive within six to nine months.
“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,” Musk said in his statement. “There will also be some headcount reduction due to consolidation of operations. In anticipation of moving vehicle engineering to our new HQ in San Jose, we are ramping down and will close our Rochester Hills office near Detroit.”
Musk also said he will take over the CEO role and current CEO Ze’ev Drori will stay as vice chairman.
San Carlos, Calif.-based Tesla Motors Inc. develops and manufactures electric vehicles. According to the company, the Tesla Roadster is the only highway-capable production electric car of any kind for sale in the United States. Its base price is $10
The company has not said when the operation would close.
Tesla’s decision in January 2007 to locate in Michigan was viewed as a significant step toward enhancing the region’s status as a brainpower center for developing electric cars and other alternative-energy vehicles.
Tesla planned to invest $47.7 million in a project that would create 76 jobs. The state granted Tesla a tax credit valued at $602,000 over three years to help persuade the company to locate here.
About 30 employees work in Rochester Hills, said Tesla spokeswoman Rachel Konrad.
Source:Freep.com
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