DETROIT (AP) – Elon Musk's move to lay off Tesla's electric vehicle charger department raises concerns that other automakers' EVs may have a hard time joining Tesla's network. The auto industry's concerns were allayed.
Several leaders of Tesla's Supercharger team posted social media messages saying they were informed by CEO Musk on Monday night that approximately 500 people across the group were being laid off, and that Musk had announced that he would not be making any changes to the social media site he currently owns, X. It appeared to confirm the move in a post on Tuesday. .
“Unfortunately, the Tesla charging organization no longer exists,” Lane Chaplin, who calls himself the former leader of Tesla's real estate acquisitions for charging in North America, said on LinkedIn.
Tech news sites The Information and The New York Times reported that Musk informed executives about the layoffs in an email.
The cuts to the charging department have raised questions in the industry about whether adding EVs from other automakers will work without the staff to support adding vehicles from other automakers. However, Ford First in the industry to sign a contract with Tesla. He said his plans to participate have not changed.
General Motors was a little more cautious. “We continue to monitor the situation regarding changes and potential impact to the Supercharger team,” the company said in a statement.
Nearly every other automaker that sells electric vehicles in the U.S. has signed up to join Tesla's Supercharger network, which has the most plugs of any network nationwide. There are also stations strategically located along interstates and other travel routes. According to the Department of Energy, Tesla has 2,261 fast-charging stations nationwide with 25,491 plugs.
The opening of the network is seen as a big win for Tesla, which will earn additional revenue from owners of EVs purchased from other companies. Expanded access to a network that was previously only accessible to Tesla owners also eases concerns that there may not be enough charging stations for EV owners to move around without running out of charge. It was done. The industry also switched to Tesla's charging plug, and it is now the norm.
Sam Abuelsamid, principal e-mobility research analyst at Guidehouse Insights, said the dismantling of the charging division comes at a time when hardware and software from other automakers is being integrated into Tesla's network. He said Musk's decision was puzzling. “To run it and maintain it, you need people who can go out in the field and keep the hardware and software up and running,” he said.
Abuelsamid said other automakers' EVs have difficulty communicating with chargers, and there is a big risk that Tesla's network will become unreliable.
Musk said he is cutting expenses to restore profit margins because he may consider it a loss, even as he opens up the Supercharger network to other automakers. . The decline was due to the slowdown in EV sales.
Abuelsamid said the costs of electricity, installing new chargers and maintaining the network and its reliability are significant.
A message was left with Tesla on Wednesday seeking comment on the impact of the cuts.
Musk wrote in Tuesday's X that Tesla still plans to add to its Supercharger network, but “will slow down on new locations and just focus on 100% occupancy and expansion of existing locations.” ”.
Musk has been cutting back on his workforce for his next initiative. Cut costs amid declining sales and slowing demand for electric vehicles. The company announced earlier this month that it would lay off about 10% of its 140,000 employees worldwide.
Tesla stock was down 1.2% in midday trading Wednesday. Its value has fallen more than 27% so far this year, but rose slightly last week after the company's first-quarter earnings conference call.