Tesla Motors, once the best hope of Silicon Valley's nascent electric-car industry, is getting better known for manufacturing drama than vehicles. The company just saw its top marketer, Darryl Siry leave — allegedly after running his mouth about ex-employees.

THR noticed something interesting in today's NBC, mid-season We're Canceling Everything New and Supersizing Anything Else That Isn't Nailed Down press release: The Knight Rider season finale was listed as airing on February 25th. Since when do super-duper, Ben Silverman-championed, beloved 1980s trash-TV remakes supposedly given full pickups end their seasons in winter, you ask?

America's failing auto companies continue to Get The Message Loud And Clear about Making Real Changes that will Make America Strong Again. They just really, really need that $25 billion government bailout first, okay? Seriously. GM has already promised to give up some of its corporate jets and order cheaper pencils. And now, a bunch of auto industry types are doing what GM's execs should have done in the first place: carpooling to Washington! Though it may be, objectively, the lamest car pool ever: 1. "As of now, the three executives — Rick Wagoner of General Motors, Alan R. Mulally of Ford Motor and Robert L. Nardelli of Chrysler — are not planning to join the carpool." 2. "Initially, organizers intended to assemble a convoy of numerous fuel-efficient, American-made vehicles to demonstrate the innovation coming from Detroit, but it might end up being more about the people involved than the products. 'From an efficiency standpoint, getting a bus or two would probably be the best way to go.'" 3. "The group is planning a quick trip, perhaps leaving Dec. 7 and heading back late the next day, with no stops for rallies or demonstrations." Two buses, full of auto dealers, on an 18-hour round trip from Detroit to Washington, with no public rallies. But they did get the New York Times to cover it, so hey. [NYT]

When visionaries clash, whose vision do we believe? On newsstands this week, Newsweek's Dan Lyons savages Tesla Motors, the electric-car maker. Tesla was once the brightest hope of Silicon Valley's clean-transportation industry; now on its fourth CEO in less than two years, it's better known for manufacturing boardroom drama than actual vehicles. Lyons writes that Tesla's Roadster is a "classic Silicon Valley product — it's late and over budget, has gone through loads of redesigns, still has bugs and, at $109,000, costs more than originally planned. Company founder Martin Eberhard (left, at bottom) says that lead investor Elon Musk (left, at top), who recently installed himself as the company's fourth CEO, made costly changes to the car's design and is "a terrible CEO." Musk's retort: "Martin is the worst individual I've ever had the displeasure of working with."Eberhard and Musk have long feuded, even before Musk ousted Eberhard as Tesla's CEO. But I'd note that for once, they're not outright contradicting each other here. It's far more common for Musk to have a version of events that conflicts with everyone else's accounting. His history of events at PayPal, the electronic-payments startup he cofounded, seems to be shared only by him. And Musk has been telling everyone who will listen that SpaceX, his rocket startup, has a "Nasa contract to build the Space Shuttle replacement after 2010." If you ask Nasa administrators, they'll say that's more than a stretch of the truth. (In fact, SpaceX is competing for a contract, but it has only hit some of the milestones; Nasa is currently planning to rent out space on Russian rockets to supply the International Space Station, and a future supply contract for SpaceX is a possibility, not a certainty.) So Musk has a tenuous relationship with reality. Is this a handicap in his business? Apple CEO Steve Jobs is famous for his "reality distortion field" — a charisma that leads others to believe the most exaggerated claims, because the vision behind them is so compelling. Of course, Jobs actually has brought his outlandish vision to life four times: With the Apple II, the Mac, the iPod, and the iPhone. Musk has realized the Roadster, and SpaceX has managed, after several crashes, to launch one lone rocket. He's also got SolarCity, a startup which installs solar panels on roofs. If in 2011, we live in a shiny future where we drive Tesla cars powered with clean electricity from SolarCity panels, and SpaceX's Falcon1 rockets are supplying orbital space stations, then we will be living in a reality of Musk's making — much as Jobs envisioned the iPod in the dark days of October 2001, and then, three years later, saw them everywhere on the New York subway. There's another possibility, however, which would also make Musk like Steve Jobs — the Jobs of two decades ago, who was forced out of Apple by the CEO he hired. Tesla could go under, SpaceX could fail to win the Nasa contract, and SolarCity could get beaten down by rival cleantech startups. And then Musk, driving his Roadster on the lonely roads of Silicon Valley, would find himself facing a reality not constructed in his mind. An unpleasant thought, that. Far easier just to succeed.

Even in a perfect economy, the media would be having economic problems dealing with the internet's impact on the traditional media business models. That's more than enough to worry about. But of course the economy is far from perfect, so the media has an extra challenge: its advertisers are losing money. And for some, we're not talking about fluctuations; we're talking about huge ad buyers who might be wiped off the map. This is why every media company is really, really hoping that the government rushes to the aid of General Motors and its dying US auto industry friends. The auto industry is one of the biggest advertisers of all. Local newspapers reap a lot of their revenue from local auto dealer ads. (The recent decline of those, along with real estate ads and retail ads, has local papers scrambling to figure out what to do). But that's just one small piece; television auto ads and sponsorships are declining too. GM spent more than $2 billion on advertising last year, and when they make cuts, media companies can see tens or hundreds of millions of dollars evaporate. In August, GM pulled out of its sponsorship of the Academy Awards. In September, the company slashed its digital ad budget and decided not to sponsor the Super Bowl. Even when GM tries to spend money, they're cursed. They signed up for a big product placement deal in the craptastic new NBC Christian Slater show My Own Worst Enemy—but yesterday NBC announced it was going to cancel the show because of low ratings. Boy that sucks. And today we learned that, thanks the auto industry's troubles, Christmas has been ruined at yet another media company! A tipster sent us an internal memo to staffers at Sirius XM Satellite Radio from the CEO Mel Karmazin, the former Viacom exec; he's copying his old company by canceling the holiday party and giving everyone an extra vacation day instead. "The economy is slowing, our OEM and retail partners are hurting, satellite radio sales are not growing as we would like, and our stock price reflects that along with other issues," Karmazin writes. A major reason: all those new cars with built-in satellite radios aren't selling. How bad is it overall?

I confess: I completely missed the Tesla Roadster parked outside when I walked into Joey & Eddie's, the San Francisco watering hole where Valleywag used to hold weekly meetups with readers. But there was no mistaking the guy parked at the bar: It was Elon Musk, the CEO of Tesla Motors. He had driven up to surprise me at the behest of Adeo Ressi, the founder of VC-ratings site TheFunded.com, who was Musk's housemate in college. Matt Marshall, the editor of VentureBeat, also dropped by. Musk pressed a set of keys on me and offered a Tesla test drive; I turned them down. Honestly, I figured I'd crash the thing, and I didn't want to put a further dent in Tesla's already parlous cash balance. But I finally agreed to go for a ride with Marshall. How was it, you ask?Kind of boring. If you like amusement-park rides, you'll love the Tesla Roadster. If, like me, you sit there calculating the infinetesimal odds that the operator's insurers will allow a rollercoaster to actually pose any real danger to you, you'll hate it. I spent the ride up to Coit Tower and back thinking about how much coal was burned to generate the electricity now being thrummed away by the Roadster's motors. Back at the bar, Musk was affable enough, considering I've hinted he's taking out his midlife crisis on his employees and may be scheming to take over Tesla Motors completely by running it into bankruptcy. He laughed at the last idea, and then thanked me for the suggestion, saying he hadn't thought of that particular financial maneuver. Musk still blames cofounder Martin Eberhard for Tesla's current straits. When Tesla raised its fourth round of funding in 2007, Musk says, Eberhard, then CEO, told investors that the Roadster's cost was $65,000, giving it a $25,000 gross margin. "It's right there on the slide, with Martin's name on it!" Musk told me. The company, he adds, was already in the middle of a search for a CEO to replace Eberhard. A private-equity firm which had invested in Tesla sent some consultants to help Tesla sort out supply-chain issues, and they found that the Roadster's parts actually cost the company $140,000. "We might as well have sent customers $50,000 and saved the bother of making the car," said Musk. Former Flextronics CEO Michael Marks, a Tesla investor, confirmed their findings — and that's when Musk decided to fire Eberhard and replace him temporarily with Marks. Just as now, the company's cash position was running low, and Tesla tapped existing investors for new funding, despite having just raised a round. He revealed none of this at the time, he says, because it would have jeopardized the company's ongoing CEO search. (Not that that worked out particularly well; Musk installed Ze'ev Drori, then replaced him last month.) That's Musk's version, anyway. I'm skeptical, if only from experience with Musk; when he was running PayPal, I remember him making statements that company insiders told me didn't match the facts. But as he was leaving to drive back to the Valley, Musk mentioned that his divorce from his sci-fi novelist wife Justine was a mutual matter; he got the paperwork in first, but she was getting ready to file papers, too. That, at least, checks out. I'm still not sure if I should trust Musk's account of what led Tesla to these perilous straits. But I do believe now that he's brave enough to drive a Roadster up to San Francisco and deliver it in person.

Why did electric carmaker Tesla Motors lose its trade-secrets case against rival Fisker Automotive? We're no legal eagles, but a tipster suggests Tesla general counsel Craig Harding was distracted by his intramural extracurriculars:

After Yahoo bought email startup Zimbra for $350 million, where did the money go? Cofounder and CEO Satish Dharmaraj put at least some of it down on a customized Toyota Prius, now on display at the SEMA auto show in Las Vegas. The yellow-and-orange car was so outrageously over the top it made even the heartless carbloggers at Jalopnik weep.The Prius features an extended battery for all-electric operation — how green! (Unless you count the coal which more than likely generated most of that electricity.) MyRide says that Dharmaraj's outré choice of scissor-wing doors means "the Lamborghini-door trend is officially over." (Photo by MyRide)

Having laid off 75-some employees and run his electric carmaker's cash balance down to $9 million, what is Tesla Motors CEO Elon Musk busying himself with? Conducting a witch hunt to find who leaked Tesla's financials to Valleywag. The Truth About Cars has published an email it claims is from Musk, which includes a letter apology from R&D director Peng Zhou. The only thing that's curious: Our tipster said he'd been at Tesla for four years. Zhou has only been there for two years. In Musk's haste to find someone to blame, did he extract a forced confession from the wrong man?

The slow-motion crash of Tesla Motors continues. Last week, an insider revealed the electric-car maker, once the best hope of Silicon Valley's nascent clean-transportation industry, had only $9 million in the bank. Now, Elon Musk, the investor who recently deposed the company's CEO, claims the company has commitments for another $40 million in financing from some of its current investors, a group which includes Google cofounders Larry Page and Sergey Brin and former eBay president Jeff Skoll. But that money is debt, not equity.Current Tesla shareholders have 30 days to choose, through a process known as a rights offering, whether to fund the debt, which is convertible, at a later round of financing, to shares. Tesla thereby avoids setting a new, presumably lower valuation for the company — almost a certainty if it had issued new shares, given Tesla's straitened financial condition. But the reality remains: Having raised $146 million in venture capital and tens of millions of dollars more from customers putting down deposits on the $109,000 Roadster, Tesla is now sinking into debt. In January, it may obtain a $200 million loan guarantee from the Department of Energy — meaning that it will be borrowing more cash. $9 million in the bank now, with $240 million in debt to come: Tesla will soon resemble, in miniature, the stumbling Detroit giants it hoped to overturn.

Tesla Motors, the automaker which is Silicon Valley's best hope to build an electric-car industry, will run out of cash in three months if it does not raise new financing. CEO Elon Musk has confirmed Valleywag's report that it has spent most of its customers' deposits and is running low on cash. In an interview with Reuters, CEO Elon Musk conceded that the company only has $9 million in the bank, as a concerned Tesla employee told us yesterday. Tesla's contract with customers specifies that deposits can be used for "working capital" — but last I checked, "working capital" means liquidity available to a company. It does not mean "money that has gone out the door." So Tesla may arguably be in breach of contract with the 1,200 customers who have put between $5,000 and $60,000 down for its Tesla Roadster. Tesla has only delivered 50 cars.Musk has previously said that Tesla will be able to turn cash-flow positive in nine months, if it receives new investment. He now says he's seeking an additional $20 million from Tesla's current investors, and expects to get it next week. Do the math: If Tesla has $9 million in the bank, and requires another $20 million to get to positive cash flow over the next nine months, then it is burning at least $3 million a month. And that's after it laid off 24 percent of its workforce and announced plans to shutter its Detroit office.

The Valley's hottest electric-car maker is running on fumes. Tesla Motors, the brightest hope of Silicon Valley's nascent clean-automotive industry, has only $9 million in the bank, a longtime employee tells us. The company, which recently laid off dozens of employees and announced the closing of its Detroit office, called an all-hands meeting yesterday evening to inform employees of its financial state. What makes the company's low cash balance especially scary, our tipster says, is that the company has taken "multiple tens of millions" of dollars in deposits from customers — anywhere from $5,000 to $60,000 per vehicle — and has only delivered 50 of them. The obvious conclusion: Having already spent its customers' deposits, it may run out of money before it delivers the cars they have paid for. Here's the Tesla insider's report:

It's typical for aging entrepreneurs in mid-career to acquire a fancy new set of wheels. Elon Musk has instead acquired a job running a fancy carmaker — Tesla Motors, the electric-car startup he has backed from the get-go with the millions he made selling Internet companies. He is also getting a divorce, according to a blog post by his wife, fantasy novelist Justine Musk. This is no mere tawdry personal detail.Do the geographical math. Until Justine threw him out this summer, the couple lived in a Bel Air mansion with their five children. Los Angeles is clearly a better locale for Justine to pursue her writing career. Tesla is based in the Bay Area. Word swept the Tesla office of a pending divorce after Elon showed up to the opening of Tesla's Menlo Park showroom with a "twentysomething actress," one attendee said. How he managed to pursue an affair while meddling in the affairs of Tesla and his other company, space-exploration startup SpaceX can only speak to Musk's off-the-charts time-management skills. His decision to fire Tesla's CEO and take over the job himself just means more time away from his family. Only Elon and Justine know all the reasons why they are divorcing. And which came first — did Elon decide to throw himself into his work after realizing his marriage was a failure, or did his obstinate workaholism jeopardize his marriage? Either way, it beggars belief to think the divorce wasn't a factor in the uproar at Tesla. That will be no comfort to the employees who will soon be laid off by a CEO going through a midlife crisis.

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.

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.

To paraphrase iPhone Savior, photos of Steve Jobs's Mercedes — no license plates, parked in a handicapped zone — are becoming a genre. What no one can answer: How does he get away with it? More Jobsmobile after the jump.

"Not once did we consider asking Washington to bail out the Sun," proclaimed the conservative New York newspaper in a deathbed editorial this morning that cited the importance of adhering to its highminded free-market "principles." But it turns out that they did almost precisely that kind of! See, some of the Sun's capitalist backers had a bunch of money invested in the private equity firm Cerberus, which controls the auto financing firms Chrysler Financial and GMAC. (And also, owns Chrysler itself, which was also a bad idea.) Auto financing firms are sitting on truckloads of car loans gone bad in no small part because people can't get home equity loans to pay them off like they used to, which is (a major reason) why the whole auto industry has gone to shit. So…guess which struggling private equity firm was about to get some major R-O-L-A-I-D-S from that big communist bailout bill all those ideological comrades of the Sun just voted down?Yup! Cerberus! Oh well, that's the free market! Says a source: "[Sun Editor Seth] Lipsky gave up trying to raise money after the bailout failed to pass." So it turns out it is not only middle-class social conservatives in Kansas who will vote Republican against their economic self-interest. Zionist New York plutocrat neoconservatives will too. Even if it means silencing their mouthpiece forever! Don't worry, Seth, Republicans will continue doing the talking (out of both sides of their mouths) for you, as conservative columnist David Brooks did today:

Of the handful of Tesla Roadster coupes on America's byways, guess where you can find two parked side by side? At the office of Tesla Motors investor Draper Fisher Jurvetson on Sand Hill Road. They even have matching paint jobs! Mock away your envy in the comments — best effort becomes the new title. Yesterday's winner was UTnick with "This banner printed in Mexico." (Photo by Steve Jurvetson)

America, let's face it: KITT from Knight Rider is kind of a bitch. Though he's a car designed for adventuring, KITT is also a big scold, always crying, "Do this!" "Do that!" "Miiiichael, the risk factor is too high!" It remains to be seen whether the Val Kilmer-voiced vehicle in tonight's Knight Rider reboot will prove less neurotic over time, but until then, we thought we'd take a trip down memory lane and give props to the "smart" cars we'd prefer to take a ride in. With the help of Molly McAleer, we've created this loving tribute to five of the best onscreen autos to ever rev their engines. Sorry, Herbie — better luck next time? [NBC]

CAMBRIDGE, MASS. — At MIT's EmTech conference, venture capitalist Vinod Khosla made a shocking assertion: Electric cars are irrelevant. Unless some unlikely breakthrough in battery technology comes about, they will never take enough of the market to matter. This is a financially convenient argument for Khosla to make: He has invested heavily in biofuels startups. But he raises a point few in the privileged West think about: Will the rising middle classes of China and India buy a $25,000 Prius, or a $2,500 Tata Nano?Make no mistake: Khosla intends to overturn oil-based transportation, and make a bundle while doing so. He is a skeptic of corn-based ethanol, but favors biofuels made from cheaply grown biomass like switchgrass. But he also thinks combustion engines can be improved to reach 100 miles per gallon — a "diesel Prius," he calls. Electric cars? Too burdened with heavy batteries, too costly to ever make up a large portion of our transport. Oh, but just in case he's wrong, he's got a couple of long-shot startups in his portfolio which could make them practical. (Photo by James Duncan Davidson/O'Reilly Media)