Musk disbands Tesla EV charging team, leaving customers in the dark

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Musk disbands Tesla EV charging team, leaving customers in the dark

DETROIT – Elon Musk's abrupt decision to lay off employees who ran Tesla's electric vehicle charging business blindsided automakers gearing up to equip new EVs for customers to use the Tesla Supercharger network, industry officials and analysts said on Tuesday.

Musk's decision to dismiss the head of the business, Rebecca Tinucci, and most or all of the staff that operated and maintained the system, according to two former employees and multiple postings on LinkedIn, left officials at automakers and Tesla suppliers uncertain about the future.Musk subsequently said on X that the carmaker still plans to expand the Supercharger network, "just at a slower pace for new locations and more focus on 100% uptime and expansion of existing locations.

GM and Ford, in separate statements, said they are not changing plans to equip their EVs with connectors that will allow drivers of Chevrolet, Cadillac or Ford brand EVs to recharge at Tesla stations. "In this layoff, nothing is off the table," Wedbush Securities analyst Dan Ives said. "Musk is trying to send a signal internally that the difficulty that Tesla is going through, they're going to have to make tough decisions. ... It shows there is serious cost focus."

With sales of Tesla's EVs falling and profit margins under increasing pressure, Musk could be cutting Supercharger network spending to conserve cash for other projects with more growth potential, analysts said.

 

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