Ever since Elon Musk announced the dismissal of the entire team responsible for the Supercharger network, the situation has been increasingly chaotic.
Initially, according to the signed agreement, Ford was supposed to use Tesla’s charging connectors, and Ford’s customers would have the right to use Tesla’s Supercharger network.
Then, like a flood, a slew of companies from General Motors, Rivian, and many others wanted to join the Supercharger network. By the end of 2023, almost every major automaker had announced plans to adopt the North American Charging Standard (NACS). It was a big win for Tesla and another vote of confidence for what drivers had long known: Elon Musk’s charging network simply is the best and he will help the entire electric vehicle industry – not just Tesla – expand.
But then, this week, things started to unravel as Tesla laid off much of its Supercharger team, affecting about 500 employees. This clear change has left customers, contractors, and even new automotive partners scratching their heads about the future.
While hundreds of Supercharger team members were surprised by the termination emails earlier this week, those doing business with Tesla were left stunned.
Andres Pinter, co-CEO of Bullet EV Charging Solutions, a company with about a dozen projects underway for Tesla, said, “I haven’t received feedback from any email address.” He noted that other contractors could run into trouble if they were primarily doing projects for Tesla.
Pinter said, as of Wednesday morning, he still hadn’t heard any response from anyone at Tesla. Tesla did not respond to requests for comment on its Supercharger plans.
According to Energy Department data, Tesla controls about 65% of the nation’s fast-charging plugs, and one analyst estimates the Supercharger network could be worth up to $100 billion. After Tesla’s stock fell following the layoff news, Musk said on X that Tesla would still expand its Supercharger network, but “at a slower pace for new locations” and with more focus on reliability.
Meanwhile, Tesla drivers are becoming increasingly anxious because since Tesla signed agreements to share its charging network with other automakers, Supercharger locations have always been crowded, with long lines always a problem. “This situation is somewhat illogical,” Pinter said. “I think Elon Musk is playing 3D chess, and perhaps all of this will make sense to us in a few months.”
Until then, it remains unclear how Tesla will fulfill its 2023 commitment to double the size of the Supercharger network by the end of this year (partly with $17 million in government subsidies).
Tesla has rapidly expanded its Supercharger network in recent months. According to the Energy Department, the total number of plugs in the US reached about 20,000 by August 2023, a figure that has been growing by about 8% each quarter since then. In just the first three months of 2024, they built around 297 stations worldwide.
Automakers collaborating with Tesla have been able to access existing plugs, but the recent layoffs raise questions about future development of the network. Before the layoffs, one estimate suggested Tesla could make up to $12 billion a year from charging revenue by 2030 by opening up charging stations to non-Tesla vehicles. Perhaps that’s not enough to offset the costs of rapidly building new Supercharger stations that will ultimately benefit other automakers as well as Tesla.
For automakers and electric vehicle owners who have been standing by, thinking their charging issues were largely solved, the current moment is a headache.