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After the mass layoffs at carmaker Tesla, it is slowly beginning to become clear what has been going on inside. One of the most merciless stories appears to be the fate of the Superchargers division. It was shut down in its entirety.

In the news: Elon Musk knew no mercy for Tesla's super-revolutionary charging station division.

  • Superchargers chief executive Rebecca Tinucci had just fired 15 to 20 percent of her staff when she positively left for a meeting. Things would get better, she believed. When Musk made it clear he was not satisfied with her performance, Tinucci still defended herself. Any more cuts would undermine the company's foundations, she allegedly instilled in Musk, writes news agency Reuters.
  • For Musk, enough was enough: he fired Tinuci and her entire team of 500 people. Superchargers, which account for more than 60 percent of U.S. fast-charging stations, are essential to Tesla's electric vehicle sales.
  • Earlier, suppliers were asked to halt new construction projects and material purchases due to lack of funds. "I understand that this changing period can be challenging, and that patience is hard when you expect to get paid," one manager wrote in a letter to suppliers.

Misplaced optimism about the Superchargers?

To follow: Musk continues to believe in it, but it doesn't seem to be very realistic.

  • Despite the layoffs, Musk promised on social media to continue expanding the network. He stated that $500 million will be spent to still expand the Supercharger network with thousands of new charging stations this year.
  • Meanwhile, the Supercharger project has been passed on to Tesla's energy division, which deals primarily with solar panels and battery storage. That was tasked with completing ongoing projects, Reuters knows. A concerned contractor testified that that department "has absolutely no idea what it is doing."

Zoomed out: Tesla's massive layoffs have big implications.

  • The layoffs mark a tumultuous year for Tesla, during which Musk shut down or delayed several key projects. Tesla posted its first decline in car sales since 2020 and scrapped plans for an affordable car, the Model 2. In addition, many executives left amid deep company-wide layoffs.
  • And Superchargers layoffs would lead to a 77 percent reduction in charging station construction per month in the U.S. The relationship with utilities and other contractors, built up through years of investment, will be difficult to repair, ex-employees believe.
  • In addition, competitors such as Ford, General Motors, Toyota and Hyundai announced that they would make their cars compatible with Tesla's charging plugs, giving their vehicles access to Superchargers. They too may have a harder time taking advantage of this now that the rollout of charging stations will slow down.

© The Content Exchange, source News