Tesla’s Supercharger network, the crown jewel of electric vehicle charging infrastructure, finds itself in a precarious position following the surprising decision by CEO Elon Musk to lay off the entire Supercharger team. This move has raised concerns among industry experts, shareholders, and former employees about the future of the network and its impact on Tesla’s electric vehicle owners.
Tesla’s Supercharger Network Faces Uncertainty After Surprise Layoffs
The Supercharger network, with over 25,000 charging ports in the U.S. and over 50,000 worldwide, has been instrumental in alleviating range anxiety for EV buyers and establishing Tesla as a leader in the charging infrastructure space. The network’s widespread availability, reliability, and fast charging speeds have set a high standard for the industry.
However, despite the Supercharger network’s profitability in 2022, Musk made the surprising decision to axe the entire division, comprising around 500 employees, in a second wave of layoffs that hit the company in late April.
According to a former Tesla employee who spoke to TechCrunch, the Supercharger team was consistently meeting and exceeding the ambitious targets set by the company, even as the expectations grew “super-duper crazy.” The team had refined the production and installation process to the point where each Supercharger post could cost as little as $20,000 to install, significantly undercutting competitors.
The sudden layoffs have left many in limbo, with dozens of Supercharger sites in various stages of planning and construction now facing an uncertain future. Some sites that were nearly ready to open may not be completed, and the rollout of the more powerful Supercharger V4 hardware appears to be stalled.
Tesla’s position in securing federal funding through the National Electric Vehicle Infrastructure (NEVI) program, which has $5 billion allocated for building a robust nationwide charging network, may also be impacted. The company had previously been well-positioned to win awards through this program, thanks to its strategic approach to site selection and expansion plans focused on high-demand areas.
Industry analysts have long speculated that the Supercharger network could become a profitable venture for Tesla, similar to how Amazon’s cloud services became a revenue stream. However, the layoffs have cast doubt on Tesla’s ability to capitalize on this potential, at least in the short term.
