Elon Musk Lays Off Entire Supercharger Team, Worrying Car Companies

 

Tesla made a surprising move by firing their entire 500-person team responsible for maintaining and expanding Tesla’s network of electric vehicle charging stations across the US. This decision has raised concerns from other automakers.

Tesla operates the country's largest charging infrastructure for EVs, with over 2,200 station locations and 25,000 individual connectors primarily along major routes. Nearly all other electric vehicle manufacturers have partnered with Tesla to allow their cars to use this network for long-distance driving.

Previously, only Tesla vehicles could use the company’s chargers. But Tesla recently opened their network to vehicles from other brands, increasing options for EV owners on road trips since most now use the same charging connection.

However, eliminating the dedicated charging station division creates uncertainty around the upkeep of the infrastructure. Providing assistance for non-Tesla vehicles will require technical support. If incompatibility issues arise, it could seriously frustrate users.

Tesla’s CEO Elon Musk says expansion will slow significantly without this internal team. However the scaled-back approach casts doubt on their capacity for timely growth, crucial for stimulating broader EV acceptance.

Ford, Tesla’s first partner, says plans remain unchanged for now. But General Motors is more cautious, watching how this affects its electric vehicle plans.

The layoffs stemmed from Tesla’s broader cost-cutting driven by recent EV sales declines. However, abandoning such core infrastructure seems short-sighted despite proceeds from outside usage.

Scrapping the charging division so abruptly has sparked substantial unease across the emerging industry. Reliable, comprehensive charging is pivotal for more consumers purchasing and using battery-powered cars. If issues damage Tesla’s network reputation or slow its development, the entire transition could feel the impact.