Tesla's charging team layoffs raise worries as other EV automakers join network

A vehicle charges at a Tesla Supercharger station in Detroit

The axing of Tesla’s charging team has sparked concerns across the automotive sector, as it could potentially hinder the integration of electric vehicles from other manufacturers into Tesla’s charging network.

Detroit’s industry insiders are uneasy following Elon Musk’s decision to disband the department that oversees Tesla’s EV chargers. Social media was abuzz with posts from several heads of Tesla’s Supercharger division, revealing they were informed on Monday evening that around 500 staff members had been let go by chief executive Elon Musk.

Mr Musk appeared to confirm the layoffs in a post on Tuesday on X, the social platform he now controls. “Unfortunately the charging organization at Tesla is no more,” declared Lane Chaplin, who introduced himself as an ex-leader of Tesla’s charging infrastructure real estate acquisition in North America, in a LinkedIn update.

Tech news outlet The Information, along with The New York Times and other media, reported that Mr Musk had notified managers about the job cuts via email. The dissolution of the charging unit has raised eyebrows regarding the feasibility of incorporating EVs from other carmakers without a dedicated team to facilitate the process.

Despite this, Ford, which was the first to agree to use Tesla’s network, has stated its intentions remain unchanged. General Motors has adopted a more guarded stance, saying: “We are continuing to monitor the situation regarding changes to the Supercharger team and the potential impacts,” reflecting a cautious approach to the developments.

Almost every major car manufacturer with electric vehicles on offer in the US has opted to join forces with Tesla’s Supercharger network, which boasts the highest number of charging points across the country. The network is not only extensive but also thoughtfully positioned along major highways and key travel routes.

With a total of 2,261 fast-charging stations and 25,491 plugs, Tesla’s infrastructure is noted by the Department of Energy as the nation’s most expansive. Tesla’s decision to open up its exclusive network was hailed as a significant win for the company, promising an additional stream of income from EV owners who bought their cars from competitors.

This move towards inclusivity also quelled concerns about the sufficiency of charging options for EV drivers, ensuring they could undertake longer journeys without the anxiety of running out of power. Moreover, the industry has adopted Tesla’s charging plug design, setting it as the new universal standard.

However, Sam Abuelsamid, a leading e-mobility research analyst at Guidehouse Insights, finds Elon Musk’s recent move to slash the charging team baffling. This downsizing occurs just as Tesla begins to incorporate hardware and software from other car manufacturers into its network.

“To do that and maintain that, you need to have a staff that can go out there and keep the hardware running, keep the software working,” Mr Abuelsamid commented. He warns that this cutback poses a considerable threat to the reliability of Tesla’s network, potentially leading to communication issues between the chargers and EVs from different brands.

Mr Musk, according to reports, views the Supercharger network as a financial drain, despite its availability to other automakers. As such, he’s slashing costs in an attempt to boost profit margins, which have been hit by slowing EV sales. The significant expenses associated with electricity, installing new chargers, and maintaining a reliable network were highlighted by Mr Abuelsamid.

Tesla was contacted on Wednesday for comment regarding the impact of these cuts. On X on Tuesday, Musk stated that Tesla still intends to expand the Supercharger network, but at a slower pace for new locations, with more emphasis on ensuring 100% uptime and expanding existing sites.

In a bid to cut costs amid declining sales and reduced demand for electric vehicles, Mr Musk has been reducing staff numbers. Earlier this month, the company announced plans to lay off approximately 10% of its global workforce of 140,000. Tesla shares have lost over 27% of their value so far this year, although they did experience a slight rally last week following the company’s first-quarter earnings conference call.