Elon Musk’s decision to downsize Tesla’s electric-vehicle charging team has thrown a wrench into plans for expanding the charging infrastructure in the United States. The Biden administration had announced a $5 billion program called the National Electric Vehicle Infrastructure (NEVI) to build 500,000 EV chargers over five years. Tesla, with its extensive Supercharger network, was seen as a key partner in this initiative.
However, since news of Tesla’s layoffs in the charging department broke, charging companies have been flooded with calls from landlords seeking new partners for their private charging projects. This indicates that Tesla may be pulling out of the federal program as well, which could further delay the rollout of the NEVI program.
Aatish Patel, co-founder of XCharge North America, a company that manufactures EV chargers, stated that Tesla’s withdrawal would undoubtedly slow down the NEVI rollout. He explained that if Tesla backs out, states will have to start over with their solicitation for NEVI-funded charging projects. This means that many sites will not be built within the originally planned timeframe.
The impact of Tesla’s decision is already being felt, with real estate companies in Texas, Louisiana, and New York reaching out to charging companies to find replacements for Tesla. According to EVAdoption, Tesla had won contracts to build chargers for 69 of the 501 NEVI-funded sites announced so far. Brendan Jones, CEO of Blink Charging, reported receiving three inquiries from two states about private sites where Tesla had backed out.
The rollout of the NEVI program has already been slow, with only a few federally funded charging stations open to the public. Tesla’s withdrawal could further hamper progress in expanding the charging infrastructure.
Elon Musk addressed the layoffs on his social media platform and stated that Tesla plans to focus more on expanding existing Supercharger locations rather than opening new ones at a slower pace. However, he did not respond to questions regarding the implications of his decision.
The federal Joint Office of Energy and Transportation, which oversees the NEVI program, stated that it does not expect individual business decisions to impact the government-funded charging projects. However, states that awarded Tesla NEVI sites are closely monitoring the situation. Colorado and Texas, two states with significant NEVI funding, have expressed confidence in adjusting their programs accordingly.
While Tesla’s change of plans may affect the EV industry as a whole, it also presents opportunities for other charging startups and recently laid-off Tesla employees. Rick Wilmer, CEO of ChargePoint, mentioned that if Tesla backs out of projects they have won or withdraws their applications, there will be more NEVI sites available for others to fill the void. EVgo, a rival charging company, has even offered job openings to those affected by the Tesla layoffs.
In conclusion, Tesla’s decision to downsize its EV charging team has disrupted plans for expanding the charging infrastructure in the United States. The NEVI program could face delays and setbacks if Tesla pulls out, leading to a slower rollout of charging stations. However, this presents opportunities for other companies and recently laid-off employees to step in and fill the void left by Tesla. The impact of these changes on the broader EV industry remains to be seen.
