Removal of Tesla’s charging department raises concerns

DETROIT — Elon Musk’s decision to fire the department responsible for Tesla’s electric vehicle charging network has raised concerns in the auto industry about plans to open chargers to electric vehicles made by other automakers.

Several executives from Tesla’s Supercharger team posted messages on social media saying they had been informed Monday evening that the entire group of about 500 people had been fired by CEO Musk, who appeared to confirm this decision in a post Tuesday on X, the social networking site he now owns. .

“Unfortunately, the charging organization at Tesla no longer exists,” Lane Chaplin, who identified himself as a former leader in acquiring Tesla real estate for charging in North America, posed on LinkedIn.

Technology news site The Information, The New York Times and others reported that Musk informed executives of the layoffs in an email.

The removal of the charging department raised questions in the industry about whether adding electric vehicles from other automakers would work without staff to support the changes. But Ford, the first in the industry to sign with Tesla, said its plans to join have not changed.

General Motors was a little more cautious. “We continue to monitor the situation regarding changes to the Supercharger team and potential impacts,” it said in a statement.

Nearly every other automaker selling electric vehicles in the United States has signed up to join Tesla’s Supercharger network, which has the most power outlets in the country. It also has strategically located stations along interstate highways and other travel corridors. Tesla has 2,261 fast charging stations nationwide with 25,491 outlets, according to the Department of Energy.

The opening of the network was seen as a big win for Tesla, which would generate additional revenue from owners of electric vehicles purchased from other companies. Expanding access to the network, which was previously only available to Tesla owners, has also helped allay concerns that there aren’t enough charging stations for electric vehicle owners can travel without running out of juice. The industry has also turned to Tesla’s charging plug, which has now become the standard.

Sam Abuelsamid, senior e-mobility research analyst at Guidehouse Insights, said Musk’s decision is puzzling because the removal of the charging department comes at the same time that hardware and software from other automakers are being integrated into the Tesla network. “To do that and maintain that, you have to have staff that can go out there and operate the hardware and software,” he said.

There is a significant risk that Tesla’s network will be less reliable, with electric vehicles from other automakers having difficulty communicating with chargers, Abuelsamid said.

Musk, he said, might view the Supercharger network as a loser despite opening it up to other automakers. So he’s cutting spending there in an effort to restore profit margins, which have been squeezed as electric vehicle sales have slowed.

There are significant costs for electricity, for installing new chargers, as well as for maintaining the grid and keeping it reliable, Abuelsamid said.

A message was left Wednesday seeking comment from Tesla on the impact of the reductions.

On Tuesday on

Musk has cut staff in a bid to cut costs amid falling sales and slowing demand for electric vehicles. Earlier this month, the company announced it would lay off about 10% of its 140,000 employees worldwide.

Tesla shares were down 1.7% as of midday Wednesday. Their value has fallen more than 27% so far this year, but saw a slight recovery last week following the company’s first-quarter earnings conference call.