Elon Musk, the CEO of Tesla, SpaceX, and owner of X (formerly Twitter), virtually terminated the entire electric-vehicle charging division of Tesla. This mass firing, which included the dismissal of charging chief Rebecca Tinucci and her 500-member team, has left the future of Tesla’s Supercharger network in a precarious position.
The day before the mass layoffs, Tinucci met with Musk to discuss the future of Tesla’s charging network. Employees were optimistic, anticipating Musk would support a major expansion of the Supercharger network, which accounts for more than 60% of high-speed charging ports in the U.S. However, the meeting turned disastrous when Musk expressed dissatisfaction with Tinucci’s presentation and demanded further layoffs beyond the 15-20% reduction already implemented two weeks prior. When Tinucci resisted, arguing that deeper cuts would harm the business, Musk responded by firing her and the entire team, a report revealed by Reuters.
The sudden terminations have disrupted a network seen as a cornerstone of Tesla’s success and a key driver of its EV sales. The Supercharger network has been pivotal in Tesla’s dominance in the EV market, supported by significant federal funding. The firings have sparked confusion and concern among vendors, contractors, and electric utilities, many of whom had heavily invested in infrastructure to support Tesla’s charging network.
Three former Tesla employees revealed to Reuters that a letter from a Tesla global supply manager instructed Supercharger contractors to halt new construction projects and materials purchases. “I understand that this period of change may be challenging and that patience is not easy when expecting to be paid!” the letter stated, highlighting the uncertainty and frustration among Tesla’s partners.
Following the layoffs, Tesla’s energy team, which typically handles solar and battery storage products, was assigned to manage the Supercharger network. Former employees noted that while there are some overlaps in design and construction roles, managing a public charging network involves complex negotiations with utilities, local governments, and landowners. The energy team, already struggling with its workload, now faces the daunting task of overseeing the charging network’s expansion.
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Despite these challenges, Musk announced on social media that Tesla would continue to grow the Supercharger network, albeit at a slower pace. He pledged over $500 million to create thousands of new chargers this year. However, former Supercharger staff indicated that this budget represents a significant reduction from the team’s original 2024 plans.
The layoffs are part of a tumultuous period for Tesla, which posted its first decline in auto sales since 2020 in the first quarter of 2024. The company faces fierce competition from Chinese EV manufacturers and declining global demand. In addition, Tesla recently cancelled plans for an affordable Model 2 car, casting doubt on new factory projects in Mexico and India.
Musk’s decision to shift focus towards developing self-driving cars, a high-risk venture, has further unsettled investors and stakeholders. Analysts and former employees warn that the layoffs could severely impact Tesla’s ability to maintain and expand its charging network, which is crucial for the broader adoption of EVs.
The abrupt changes have left many in the industry scrambling. One construction contractor mentioned that Tesla staff contacting his company since the layoffs “don’t know a thing.” The contractor had anticipated Supercharger projects would constitute about 20% of his 2024 revenue. Now, he plans to diversify to reduce reliance on Tesla.
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Former employees noted that Tesla’s relationships with suppliers and utilities, built over years, are now at risk. Tesla had become a major customer for utilities, many of which had expanded their infrastructure based on Tesla’s ambitious plans. The goodwill and collaborative efforts essential for such large-scale projects may not be easily replicated by other companies stepping in to fill the gap.
The firing of Tinucci and her team represents a significant setback for U.S. charging infrastructure expansion. The expertise and established relationships that Tesla’s team had with utilities and contractors were critical to the successful rollout of Superchargers. Now, with the original team gone, the continuity and efficiency of these projects are in jeopardy.
“It’s just unfortunate that now they’re stuck holding the bag on all these different projects,” said a former Tesla employee. “It’s really sad to see all these relationships burned and people be really angry—rightfully so.”