American electric vehicle (EV) juggernaut Tesla has gutted its team responsible for building its Supercharger EV network around the world, sacking its most senior executives and reportedly laying off around 500 employees.
The Tesla Supercharging network is the most popular, and the most reliable in the world, and news that its rollout will be slowed, apparently as part of a cost cutting program initiated by CEO Elon Musk, came as a shock to the EV community and investors .
The news follows a fall in new car sales in the first quarter, its steepest drop in revenue since 2012 (down 8.5 per cent) and the announced sacking of 10 per cent of its global workforce as part of efforts to reign in costs.
Musk has this week reportedly dismissed two more senior executives – Rebecca Tinucci, senior director of the electric vehicle maker’s Supercharger business, and Daniel Ho, head of the new vehicles program.
Musk is also reportedly planning to lay off hundreds more employees due to frustration by falling sales and the pace of job cuts so far, starting with the company’s Supercharger team, responsible for building out the Tesla Supercharger network.
Originally reported by The Information based on an email from Musk to senior managers, the firing of the Supercharger team has since been confirmed by The New York Times.
“Hopefully these actions are making it clear that we need to be absolutely hard core about headcount and cost reduction,” Musk reportedly wrote in the email, according to The Information. “While some on exec staff are taking this seriously, most are not yet doing so.”
“Starting at 10 AM EST on Tuesday, I will ask for the resignation of any executive who retains more than three people who don’t obviously pass the excellent, necessary and trustworthy test… I have been super clear about this.”
Musk unsurprisingly also took to .
Exactly what this means for Tesla’s Supercharger network is uncertain at this point. The Australian team, The Driven understands, is still digesting the news. Australia was also affected by the staff cuts announced a week ago.
Tesla has steadily been making its Supercharger network available to owners of other electric vehicles, causing virtually all major electric carmakers to adopt the NACS connector.
Increased demand for the network resulting from making the network available to more cars will likely ensure work for those left behind to keep the network running.
As for Australia’s network of around 90 Supercharger locations, the ouster of the company’s employees responsible for building out the network presumably potentially puts the brakes on any further expansion in Australia, beyond the contracts it has through government supported programs.
The dissolution of the Supercharger team comes only weeks after Tesla announced plans to lay off 10% of its workforce, amounting to around 14,000 people, and saw the ouster of two key executives, Drew Baglino and Rohan Patel.
Tesla’s dramatic cuts to its workforce and senior management snowballs an already tempestuous month which saw the company halt deliveries of its controversial Cybertruck due to reportedly an “unexpected delay regarding the preparation of your vehicle.”
The Cybertruck, Tesla’s answer to the need for electric pickup trucks/utes, had already garnered unwanted headlines as early adopters took to social media and YouTube to document a range of issues – such as the razor sharp edges of the stainless steel – and problems with jammed accelerator pedals that caused a recall of all delivered Cybertrucks.
Joshua S. Hill is a Melbourne-based journalist who has been writing about climate change, clean technology, and electric vehicles for over 15 years. He has been reporting on electric vehicles and clean technologies for Renew Economy and The Driven since 2012. His preferred mode of transport is his feet.
