Tesla’s Supercharger Expansion Hits Speed Bump After Layoffs

Tesla’s once-rapid Supercharger network expansion has hit a snag following recent workforce reductions, according to a detailed report from The Wall Street Journal. This slowdown comes at a crucial time for the electric vehicle pioneer as it faces increasing competition and pressure to open its charging network to other automakers.

The Numbers Behind the Slowdown

The impact of the layoffs is evident in the numbers. For the first eight months of this year, new Supercharger port openings were down 11% compared to 2023. More starkly, the number of new ports opened from May through August fell by 28% over the same period last year. This decline is particularly significant given Tesla’s previous aggressive expansion strategy and the growing demand for EV charging infrastructure.

Chaos in the Ranks

The disruption began this spring when Tesla abruptly let go of the entire Supercharger team, including its head, Rebecca Tinucci. This move, part of companywide layoffs, threw the industry into chaos. It paused construction on some Supercharger sites under development and caused confusion among property owners who were in the midst of negotiations when the job cuts occurred.

“Tesla actually has one of its biggest challenges in front of it since the Supercharger was first released,” said Nick Nigro, founder of the research and consulting group Atlas Public Policy. He reportedly added, “What’s important for them, in planning around where to allocate resources, is what’s coming in the next 12 to 24 months—that is millions of drivers.”

Rebuilding and Reorganizing

In the aftermath of the layoffs, Tesla has been working to get back on track. By the end of May, the company had brought back several senior members of the Supercharger team, including Max de Zegher, who now leads the program, and a group of managers overseeing North American operations.

Mike Snyder, a longtime Tesla executive who previously ran its industrial-battery program, has since assumed oversight of the charging group. He now manages several programs once under Drew Baglino, Tesla’s former senior vice president of energy, who left in April.

Financial Investments and Public Funding

Despite the setbacks, Tesla isn’t backing down from its expansion plans. Elon Musk has stated that the company plans to invest over $500 million to improve the network with thousands of new chargers this year.

“That’s just on new sites and expansions, not counting operations costs, which are much higher,” Musk said.

Tesla has also been successful in securing public funding for its expansion efforts. The company has obtained about $37 million in public funding to build 88 Supercharger stations in the U.S., making it one of the top recipients in a federal program to expand EV charging access. Additionally, Tesla received $2.9 million to install six charging sites in Arizona and $1.8 million from Maryland for fast chargers.

Opening the Network: A New Era

In a significant shift from its previous exclusive strategy, Tesla agreed in late 2023 to make its charging service available to other automakers. This move not only allowed Tesla to qualify for a share of the billions in federal dollars available for expanding the country’s EV charging infrastructure but also marked a new era of interoperability in EV charging.

The company has already opened its charger network to Ford and Rivian drivers. It also had plans to expand access to General Motors, Volvo Cars, and Polestar by the spring of 2024, though its website now says these additions are coming soon.

This opening up of the network has not been without its challenges.

“That was one downside that came as a result of opening up that network to the non-Tesla owners,” said Brent Gruber, executive director of the EV practice at J.D. Power, which studies charging satisfaction. “They no longer had access to that exclusive club. Now they’re sharing it with other owners.”

EVXL’s Take

The slowdown in Tesla’s Supercharger expansion is a clear indicator of the growing pains faced by the EV industry as it scales to meet increasing demand. While Tesla remains a leader in charging infrastructure, this situation underscores the importance of a diverse and robust charging network.

As we’ve seen in our coverage of other EV manufacturers like Porsche, traditional automakers are investing heavily in charging infrastructure, recognizing its critical role in EV adoption. This competition could lead to more innovation and better services for EV owners across brands.

However, the challenges Tesla faces also highlight the complexities of rapidly scaling charging infrastructure. It’s not just about installing chargers; it’s about managing growth, maintaining quality, and adapting to changing market dynamics. As the EV market matures, we may see more collaborations and partnerships forming to address these challenges collectively.

The opening of Tesla’s network to other brands is a particularly interesting development. While it may cause some frustration among Tesla owners who valued exclusivity, it’s a significant step towards creating a more unified and accessible charging ecosystem. This could be crucial for accelerating EV adoption on a broader scale.

What are your thoughts on Tesla’s Supercharger expansion slowdown? Do you think opening up the network to other brands is the right move? How might this affect your decision to purchase an EV? Share your opinions in the comments below.​​​​​​​​​​​​​​​​