Elon Musk Explains Why He Laid Off His Entire Supercharger Staff

“What a wild ride it has been,” shared William Jameson, the strategic charging programs lead at Tesla on social media platform X, formerly Twitter. This bold move by Tesla has left numerous employees out in the cold, signaling a major restructuring within the company.

He pointed out the critical need for austerity, stating in a company memo, “We need to be absolutely hardcore about cost reduction,” according to a report by The Information.

This comes after Musk sent a memo to employees announcing that 10% of the company will be laid off to keep the company “lean, innovative, and hungry.”

“Tesla 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,” Musk said (via TeslaRati).

“This is a … disaster. Superchargers need to be Tesla’s second top-growing sector outside of FSD,” user @cybrtrkguy wrote. “Long-range travel that’s EASY to any location is fundamental to the adoption of EVs in North America.”

“As part of this effort, we have done a thorough review of the organization and made the difficult decision to reduce our headcount by more than 10% globally. There is nothing I hate more, but it must be done,” Musk wrote.

Sure, it is cutting cost and others can take on the work, but some states like Hawaii and Alaska have little-to-no choices for charging.

California Governor Gavin Newsom announced that for every five gas stations in the Golden State, there will be one fast-charging station for electric vehicles.

With over 50,000 Superchargers around the world, Tesla maintains the largest fast-charging network for electric vehicles globally.

Tesla had also just accepted $17 million in federal EV charging grants to help get this new network started. However, Musk seemed to have pulled the plug on this project and is doing the opposite of expanding its networks by canceling several Supercharger locations in the US.

“Extremely perplexed by the move,” he said, recognizing the Supercharger network as one of Tesla’s biggest successes.

The U.S. and Europe are pushing Tesla to allow other manufacturers’ vehicles to use its charging network, potentially leveling the playing field.

He speculated that Musk might rebuild the charger team in a way that maximizes future U.S. government incentives.

“You need reassurance that the people selling you the vehicles see a strong future for the technology,” he told the BBC, reflecting broader industry anxieties.

“If one thing was a clear success at Tesla, it’s the Supercharger network. Even from a talent perspective. No other charging team in the world has been able to do what Tesla did,” he wrote.

He adds that Superchargers were “a key selling point for potential buyers.” With low sales, investors pulling away, and recalls glore, Tesla might be in hot water.

Electrify America is the next leader in charging stations, with about 800 stations and 3,600 fast-charging ports.

Additionally, automakers are choosing to adopt the CCS connector altogether and will install the inlet on their vehicles in 2025.

This agreement enhances the utility of Tesla’s extensive charging infrastructure.

These changes are reshaping not just the Supercharger team but also its public policy division, the Financial Times reported.

Companies like Mercedes, Honda, and BMW have joined forces to establish a competing fast-charging network, stepping up the competition against Tesla.

The shifting infrastructure and competitive landscape are major considerations for consumers on the brink of purchasing an EV.

The automotive world is watching closely, as Tesla’s decisions in the coming months could redefine its market position and influence its capacity for innovation in the electric vehicle industry.

While Tesla needs to continue growing, the CEO does not believe that the current staff is necessary to implement these required changes.