Elimination of Tesla’s charging division raises worries as EVs from different automakers be part of community

FILE – A automobile expenses at a Tesla Supercharger station in Detroit, Nov. 16, 2022. AP Photograph/Paul Sancya, File

By TATION VEREAR and DETERRUISSET REPREHENDUNT, Related Press

Could 1, 2024 | 5:56 PM

DETROIT (AP) — Elon Musk’s transfer to put off the division chargeable for Tesla’s electric vehicle charging community has touched off worries within the auto trade about plans to open the chargers to EVs made by different automakers.

A number of leaders of Tesla’s Supercharger workforce posted social media messages saying they had been advised Monday evening that whole group of about 500 had been laid off by CEO Musk, who appeared to verify the transfer in a posting Tuesday on X, the social media website he now owns.

“Sadly the charging group at Tesla isn’t any extra,” Lane Chaplin, who recognized himself at a former chief of Tesla actual property acquisition for charging in North America, posed on LinkedIn.

The tech information website The Info, The New York Instances and others reported that Musk advised managers of the layoffs in an electronic mail.

Reducing the charging division raised questions within the trade about whether or not including EVs from different automakers would work with no workers to assist the adjustments. However Ford, the primary within the trade to enroll with Tesla, mentioned its plans to affix haven’t modified.

Common Motors was a bit of extra cautious. “We’re persevering with to watch the scenario concerning adjustments to the Supercharger workforce and the potential impacts,” it mentioned in a press release.

Almost all different automakers promoting electrical automobiles within the U.S. have signed as much as be part of Tesla’s Supercharger community, which has essentially the most plugs of any community within the nation. It additionally has stations strategically situated alongside interstate highways and different journey corridors. Tesla has 2,261 fast-charging stations nationwide with 25,491 plugs, in line with the Division of Power.

Opening the community was seen as a giant victory for Tesla, which might get added income from house owners of EVs bought from different firms. Increasing entry to the community, which beforehand had been accessible solely to Tesla house owners, additionally helped to allay fears that there weren’t sufficient charging stations for EV house owners to journey with out operating out of juice. The trade additionally switched to Tesla’s charging plug, which now has turn into the usual.

Sam Abuelsamid, principal e-mobility analysis analyst for Guidehouse Insights, mentioned Musk’s choice is puzzling as a result of gutting the charging division comes simply as {hardware} and software program from different automakers is being built-in into Tesla’s community. “To do this and preserve that, that you must have a workers that may go on the market and hold the {hardware} operating, hold the software program working,” he mentioned.

There’s a major threat that Tesla’s community might be much less dependable, with EVs from different automakers having issue speaking with the chargers, Abuelsamid mentioned.

Musk, he mentioned, may even see the Supercharger community as a money-loser regardless of opening it to different automakers, so he’s slicing bills there in an effort to revive revenue margins, which have been diminished as EV gross sales have slowed.

There are important prices for electrical energy, to put in new chargers, and to take care of the community and hold it dependable, Abuelsamid mentioned.

A message was left Wednesday searching for remark from Tesla on the impression of the cuts.

Tuesday on X, Musk wrote that Tesla nonetheless plans so as to add to the Supercharger community, “simply at a slower tempo for brand new areas and extra give attention to 100% uptime and enlargement of present areas.”

Musk has been slicing staff in an effort to slash prices amid falling gross sales and slowing demand for electrical automobiles. Earlier this month the corporate mentioned it could lay off about 10% of its world workforce of 140,000.

Shares of Tesla had been down 1.7% in noon buying and selling Wednesday. They’ve dropped in worth by greater than 27% up to now this 12 months, however had a little bit of a rally previously week after the corporate’s first-quarter earnings convention name.