SAN CARLOS, California — Tesla Motors has been stung by the financial troubles bedeviling the global auto industry, announcing on Wednesday that it is being forced to delay the start of its five-passenger Model S sedan until mid-2011. It is also closing its vehicle engineering office in Rochester Hills, Michigan, laying off an unspecified number of staff and consolidating power in the hands of Chairman Elon Musk.The word of what basically amounts to a restructuring and product delay at Tesla Motors spread quickly through Silicon Valley, with some local media reporting that Tesla 'is laying off 100 people, about half its staff.' When reached by Inside Line, Tesla Motors Spokesman Joe Powers would not say specifically how many people will be laid off. He said published reports were 'exaggerated.'Musk posted a lengthy blog on the corporate Web site early Wednesday afternoon, which laid out the changes at Tesla Motors. 'Tesla is absolutely committed to development of our next-generation vehicle, to be unveiled early next year,' Musk said in reference to the Model S. 'However, we are going to reduce activity on detailed production engineering, tooling and commitments to suppliers until our (U.S.) Department of Energy loan guarantee becomes effective. The DOE loan guarantee will cover most of the Model S program at a very low cost of capital compared with raising equity financing in what could quaintly be described as a 'bear market.' The loan funding can only be drawn down after we receive environmental approval for our new 89-acre consolidated headquarters in the city of San Jose. If all goes reasonably well, we will receive that approval in Q2 next year.'He added: 'The net result will be a delay in start of production of the Model S of roughly six months to mid-2011. On the plus side, we will spend the extra time refining the vehicle design and powertrain technology, so the car will end up being slightly better.'Musk also confirmed that he will assume the CEO duties of Ze'ev Drori. He said Drori will 'stay on the board of directors as vice chairman and continue to help Tesla make the right decisions.' Until today, Musk's title was chairman and 'product architect.'Musk said that layoffs would amount to a 'modest reduction in near-term headcount.... I believe Tesla must adhere more closely to a special forces philosophy at this stage of its life if we aspire to become one of the great car companies of the 21st century.' Without spelling out its financial situation, Musk said that 'our goal is to be cash-flow positive within six to nine months.'Just weeks ago, Drori blogged on the corporate Web site that Tesla's plan to build a $250 million facility to make electric cars in Silicon Valley was 'a refreshing change of pace from the gloom and doom of Wall Street.... Our success is proof that clean tech can really drive job creation in the 21st century,' he said.Inside Line says: Tesla Motors, once the golden child of the domestic auto industry, feels the financial pinch of global economic meltdown and reacts swiftly. — Anita Lienert, Correspondent