Tesla just fired an entire department that was overseeing the carmaker's charging business — a dramatic, head-scratching move that raises questions about the future of sorely needed electric vehicle charging infrastructure in the US.
One of the biggest problems with the transition to EVs in America is the reliability of finding a place to charge up while on the road. That's one area where Tesla has long had an edge, because it invested heavily to build its extensive "Supercharger" network, my colleagues Hanna Ziady and Peter Valdes-Dapena wrote.
Until recently, that network could only be used by Tesla vehicles. But now, virtually every big automaker in the United States has committed to making EVs compatible with Tesla's charging stations. Which is why a lot of folks this week are wondering why the heck the company would lay off the very people tasked with creating and maintaining that vital charging network, known as the North American Charging Standard.
CEO Elon Musk said on X that the company "still plans to grow the Supercharger network, just at a slower pace for new locations and more focus on 100% uptime and expansion of existing locations."
But who will grow it, and how? Musk didn't say, and he didn't respond to CNN's request for comment.
General Motors, for one, said it would monitor the situation but for now it still plans to transition its EVs to the Tesla-designed network.
What's going on?
The layoffs, which several employees said they were blindsided by, come at a difficult time for Tesla in particular and EVs broadly.
Last week, Tesla reported its first-quarter profit fell to its lowest level in three years. While the EV industry is still gaining momentum as Peter reported today, some pockets of consumer demand for electric vehicles has been cooling, while growing competition from competitors has taken a huge bite out of Tesla's sales. Consumer demand for electric vehicles has been cooling, while growing competition from competitors has taken a huge bite out of Tesla's sales.
Following the layoffs, Tesla's head of human resources, Allie Arebalo, reportedly quit — becoming the latest of several top executives to resign in recent months.
According to Dan Ives, a senior analyst at Wedbush Securities, "Musk is reading the room around softer EV demand globally."
"Unfortunately strategic changes are needed to get the train back on the tracks," he told CNN, but added: "Removing the whole department is a head-scratcher."
