Elon Musk unexpectedly dismisses workers responsible for assembling Tesla's electric vehicle charging network.

Elon Musk unexpectedly terminates Tesla's team working on electric vehicle charging infrastructure.

A few Tesla employees have confirmed layoffs in the charging department via their social media postsings on Tuesday. This information was initially reported by The Information. William Navarro Jameson, the strategic charging programs lead at Tesla, stated on X that the entire charging organization has been let go.

A lack of charging infrastructure has been identified as one of the primary obstacles to widespread electric vehicle (EV) adoption, and Tesla's extensive "Supercharger" network has traditionally been a significant selling point for its cars. Until recently, the Supercharger network could only be utilized by Tesla vehicles.

Blindsided competitors

On LinkedIn, Lane Chaplin, a senior manager in Tesla's charging division, wrote: "In the middle of the night, I discovered, along with all my Tesla Global Charging colleagues, the Tesla Charging department no longer exists."

Responding to an invitation from Tesla CEO Elon Musk, several major U.S. automakers committed to ensuring their EVs are compatible with Tesla's charging technology, now referred to as the North American Charging Standard (NACS). Consequently, significant charging providers, like Electrify America and EVgo, have started building chargers with NACS cables.

"I'm not entirely sure what this implies for the charging network, NACS, and all the interesting work we were doing across the industry," Jameson noted in his post.

Tesla hasn't responded to CNN's inquiry for a comment. On X on Tuesday, Musk stated that the business "still intends to expand the Supercharger network; however, there will be a lower pace for new locations and a greater emphasis on increasing uptime and growing existing locations."

Electrify America stated in a message to CNN that they will make NACS chargers accessible next year. General Motors affirmed that their plans to shift to NACS remain unaltered. "We're continuing to keep an eye on the situation involving the Supercharger team and potential fallouts," the organization said in a statement.

Assessing the consequences of EV demand

Gene Munster, a managing partner at Deepwater Asset Management, suggested the decision demonstrates that Tesla doesn't regard charging as a competitive advantage. "Since they broadened their access to the network, it's no longer beneficial for the company to advance charging because it also aids their rivals," he told CNN. "Tesla's primary objective, now, is autonomous driving, which is where the resources are directed."

According to Dan Ives, a senior analyst at Wedbush Securities, "Musk is interpreting the room about softer EV demand globally."

"Tesla is experiencing a... demand slump and regrettably certain tactical adjustments are necessary to regain control of the situation," he told CNN. However, he added, "Disbanding the entire department is puzzling."