Tesla has fired the team running its electric vehicle charging business, leading to uncertainty about the future of its charging network, which is also used by other carmakers such as General Motors and Ford. The layoffs were confirmed by Tesla employees in social media posts, with one employee stating that the entire charging organization had been let go. Tesla’s Supercharger network has been a key selling point for its vehicles, but until recently, it could only be used by Tesla vehicles.
Elon Musk invited other major automakers in the US to make EVs compatible with Tesla’s charging technology, known as the North American Charging Standard. This move was met with positive responses from various EV charging providers who began building chargers with NACS cables. The future of the charging network and the work being done in the industry are uncertain following the layoffs of Tesla’s charging team. Although Tesla has not yet responded to CNN’s request for comment, Musk stated that the company plans to continue growing the Supercharger network but at a slower pace, with a focus on 100% uptime and expansion of existing locations.
Despite the layoffs and changes in Tesla’s charging division, other companies like Electrify America and General Motors remain committed to transitioning to the NACS. General Motors stated that they are monitoring the situation regarding the changes to Tesla’s Supercharger team and potential impacts. Gene Munster of Deepwater Asset Management believes that Tesla no longer sees charging as a competitive advantage, as opening up the network to competitors has reduced its benefit to the company. Analysts like Dan Ives from Wedbush Securities suggest that Tesla is responding to softer EV demand globally by making strategic changes, although the decision to remove the entire charging department is seen as puzzling.
The removal of Tesla’s charging team reflects a shift in the company’s priorities away from charging infrastructure and towards autonomous driving, according to Munster. Ives also suggests that Musk is responding to a “demand storm” in the EV market by making strategic changes to refocus Tesla’s resources. The transition to the North American Charging Standard by other automakers, despite the changes at Tesla, indicates a commitment to expanding the charging infrastructure and making EVs more accessible to consumers. The impact of these changes on Tesla’s competitors and the overall EV market remains to be seen as the industry continues to evolve.
