Tesla, despite its recent success in winning over major automakers and establishing its connector as the standard in North America, has made significant cuts to its charging team. This decision comes as a surprise to many, considering that Tesla’s Supercharger network has been a key competitive advantage for the company.
The Supercharger network is widely available and has better uptime compared to other charging networks. Furthermore, the North American Charging Standard (NACS), which is used by Tesla, is now being adopted by nearly every major automaker with a presence in North America. This widespread adoption of NACS has solidified Tesla’s position as a leader in charging infrastructure.
However, in an overnight email to executives, CEO Elon Musk announced the new round of layoffs. He emphasized the need for leaders to prioritize headcount and cost reduction. Musk ordered them to cut employees who do not meet the standards of excellence, trustworthiness, and necessity. Consequently, Rebecca Tinucci, the senior director of EV charging, and Daniel Ho, the head of new vehicles, are among those who have been let go.
The magnitude of these cuts is evident as the entire global charging organization has been dissolved. This unexpected move has surprised industry insiders. Will Jameson, one of the charging team leads who was laid off, expressed uncertainty about the future of the charging network and the work they were doing across the industry.
Despite these cuts, Musk stated in his email that Tesla will continue to build new Supercharger locations where they are critical and complete ongoing construction projects. However, this suggests a potential slowdown in the expansion of the Supercharger network.
In addition to the charging team, Tesla’s public policy team is also being dissolved. Rohan Patel, the former VP of the team, left the company two weeks ago when the layoffs were initially announced. Patel praised his team as the best in the business and expressed his admiration for their capabilities.
Tesla’s policy team played a significant role in securing around 13% of the available funding from the Bipartisan Infrastructure Law. They were also pursuing a federal grant of nearly $100 million to support the development of a charging corridor for Tesla’s electric big rig. The dissolution of this team raises questions about the company’s future policy and advocacy efforts.
These layoffs come shortly after Tesla announced a company-wide restructuring that involved laying off more than 10% of its workforce. The company is determined to prioritize autonomous driving technology. However, the first quarter of this year proved challenging for Tesla, with a 55% drop in profits due to weaker electric vehicle sales.
It is worth noting that Tesla’s board is currently attempting to reinstate Musk’s $56 billion pay package, which was previously rejected by a judge. Furthermore, Musk has publicly threatened to develop AI technology at his startup, xAI, unless he gains even more control over Tesla.
In conclusion, Tesla’s decision to lay off employees in its charging and public policy teams raises concerns about the future of its Supercharger network and policy efforts. Despite recent successes, the company faces challenges in maintaining its profitability and navigating legal battles. These developments reflect the complex and evolving nature of the electric vehicle industry and Tesla’s position within it.
