Elon Musk Axes the Team Building Tesla’s EV Charging Network

In an unexpected move, Tesla has terminated its team responsible for managing the electric vehicle charging business, sparking concerns about the fate of one of the largest US charging networks, which rivals like General Motors and Ford had planned to utilize.

Reports of the layoffs surfaced after several Tesla employees confirmed the news on social media platforms, with William Navarro Jameson, a strategic charging programs lead, announcing on X that Tesla had “let our entire charging org go.”

The decision comes as a surprise considering the significance of charging infrastructure in facilitating widespread EV adoption, with Tesla’s expansive “Supercharger” network serving as a key selling point for its vehicles, albeit previously exclusive to Tesla cars.

Competitors in the EV market were taken aback by the move, particularly after virtually every major automaker in the US had committed to integrating their EVs with Tesla’s charging technology, now referred to as the North American Charging Standard (NACS). This shift prompted EV charging providers like Electrify America and EVgo to announce plans for deploying chargers compatible with NACS cables.

Lane Chaplin, a senior manager in Tesla’s charging division, expressed uncertainty about the implications of the decision, emphasizing the significant work undertaken across the industry.

While Tesla has not responded to inquiries about the layoffs, CEO Elon Musk acknowledged on X that the company still intends to expand the Supercharger network, albeit at a slower pace, prioritizing the uptime and expansion of existing locations.

Electrify America reaffirmed its commitment to deploying NACS chargers by next year, while General Motors stated that its plans to transition to NACS remain unchanged, though they are monitoring the situation closely.

Industry analysts interpreted the move as a strategic shift, with Gene Munster of Deepwater Asset Management suggesting that Tesla no longer views charging infrastructure as a competitive advantage, especially after opening up its network to competitors. Dan Ives from Wedbush Securities highlighted Tesla’s response to softer EV demand globally, indicating the need for strategic adjustments to regain momentum, albeit characterizing the decision to dissolve the entire charging department as perplexing.