Layoffs At Tesla Superchargers Could Hurt EVs In America

(CTN News) – Tesla (TSLA) recently announced layoffs, which cut deep into the company’s greatest competitive advantage – its extensive network of Superchargers.

According to EV blog Electrek, Tesla laid off nearly its entire Supercharger organization, which was responsible for constructing its best-in-class charging network. The NACS (North American Charging Standard) plug has recently been adopted by a number of major automakers.

A total of nearly 500 employees were terminated from the organization, including Rebecca Tinucci, the senior director. Elon Musk, the company’s CEO, made the decision last week, according to Bloomberg and other sources, and it follows the reduction of over 10% in headcount earlier this month. It has also been confirmed that former director of strategic charging programs will be laid off as well.

It has been reported that Tesla’s Supercharger network will now slow down and construction at certain locations will cease. Tesla has currently installed 6,249 Supercharger stations and more than 57,000 connectors.

According to Musk, the Supercharger network will grow at a slower pace for new locations.

The future of Tesla’s Supercharger network, as well as the larger EV build-out in the United States, is unclear, and many plans are put at risk.

The US president has invested considerable political capital in transforming the fleet of automobiles on the road to electric vehicles, including the building out of national electric vehicle charging infrastructure worth $7.5 billion.

As part of the National Electric Vehicle Infrastructure (NEVI) program, the White House is targeting the installation of 500,000 new charging stations by the end of the decade by using public and private funding.

One of the more prominent White House partners in the NEVI program is Tesla.

According to Bullet EV Charging CEO Andres Pinter, one of Tesla’s Supercharger contractors,

Musk is unable to walk away from free money. In accordance with the federal government’s NEVI program, Tesla has already been awarded funding. In Pinter’s opinion, Tesla’s decision to halt Supercharger construction was a “kick in the pants,” leaving his current Tesla projects in limbo.

According to Pinter, the administration’s “free money” will likely result in Musk reconstituting the charging industry rather than abandoning it. It is hoped that automaker charging partners will be able to achieve this.

Under the promise that the Supercharger network would continue to grow at a steady pace, automakers such as General Motors, Ford, Kia, Polestar, Stellantis, Honda, and others have signed up to access the Supercharger network, and will incorporate Tesla’s NACS plug inlet into their future vehicles.

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