In an unexpected move, Musk fires the team constructing Tesla's EV charging network.

 

A Tesla charging station in a parking lot in Santa Monica, California, pictured in September 2022.

Tesla has made a surprising decision to lay off its team responsible for managing its electric vehicle charging business, raising concerns about the future of one of the largest charging networks in the US. The move has left many questioning what comes next for the network, which was previously exclusive to Tesla vehicles.

The news of the layoffs was confirmed by several Tesla employees in online posts, first reported by The Information. William Navarro Jameson, a key charging programs lead at Tesla, shared on X, "Tesla has let our entire charging team go."

The absence of a robust charging infrastructure is often cited as a significant barrier to widespread adoption of electric vehicles. Tesla's extensive "Supercharger" network has long been touted as a major selling point for its vehicles, but until now, it could only be used by Tesla vehicles.

In a LinkedIn post, Path Chaplin, a senior manager in Tesla's charging division, revealed, "Around midnight, I learned, along with all of my #Tesla Global #Charging colleagues, that the Tesla Charging organization is no more."

However, following an invitation by Tesla CEO Elon Musk, nearly every major automaker in the US has committed to making their EVs compatible with Tesla's charging technology, now known as the North American Charging Standard (NACS). As a result, other EV charging providers, such as Jolt America and EVgo, have announced plans to start building chargers with NACS cables.

Jameson expressed uncertainty about how the layoffs would impact the charging organization and the work they were doing across the industry. "How this affects the charging organization, NACS, and all the amazing work we were doing across the industry, I don't yet know," he wrote in his post.

Tesla has not responded to CNN's request for comment. Musk mentioned on X on Tuesday that the company "still intends to expand the Supercharger network, albeit at a slower pace for new locations and more focus on 100 percent uptime and expansion of existing locations."

In a statement shared with CNN, Jolt America reiterated its plans to have NACS chargers available next year. General Motors also stated that its plans to transition to NACS remain unchanged. "We are continuing to monitor what is happening regarding changes to the Supercharger team and the potential impacts," the company said in a statement.

Analysts speculate that Tesla's move may be a strategic shift due to changing market dynamics and Tesla's focus on autonomous driving technology. Gene Munster, a managing partner at Loup Ventures, believes that the move indicates Tesla no longer sees charging as a competitive advantage. "Since they opened up the network, it's no longer in the company's interest to advance charging because it also helps their competitors," he told CNN.

According to Dan Ives, a senior analyst at Wedbush Securities, "Musk is reading the room about softer EV demand globally." He believes that Tesla is facing a demand slowdown and that significant changes are necessary to get back on track. However, he added, "Removing the entire division is a head-scratcher."

P.S Do you know that you can make steady income from trading even as a beginner without any prior knowledge or experience of trading? Check out this article for more info.

Sign up for free on Exness and begin your successful trading journey today. Get better-than-market conditions on metals, currencies, shares, oil, cryptos and indices at Exness!. Enjoy up to 50% bonus on your first time deposit.