Tesla’s Supercharger Expansion Slows After Layoffs

While Tesla has attempted to rebuild the group, including rehiring some previously laid-off workers, the number of new Supercharger ports opened from May through August fell 28% compared with the same period a year earlier, according to electric vehicle analytics firm EVAdoption.

That number fell 11% in the first eight months of this year compared with 2023, according to company data. The decline comes as the electric car maker received millions of dollars in government funding this summer to install new chargers in states including Maryland and Arizona.

Tesla is faced with the need to expand its network of fast chargers and make it available to a wider group of drivers, including those who own cars of other brands.

Ford Motor and Rivian Automotive already have access to Tesla’s plug-in technology, and several other automakers have struck deals for their own customers to use its chargers. Such a move could help expand what was once an exclusive service.

Tesla’s rollout to other automakers has hit some snags this year, in part due to software issues and delays in distributing plug adapters needed by customers who don’t buy Teslas.

“Tesla is truly facing one of its biggest challenges since the introduction of the Supercharger,” said Nick Nigro, founder of research and consulting group Atlas Public Policy.

“What’s important for them to consider when planning where to allocate resources is what’s going to happen over the next 12 to 24 months — millions of drivers,” Nigro said.

Tesla did not respond to requests for comment. Last week, Tesla CEO Elon Musk posted on X that Tesla is “opening a lot more Superchargers.”

Back on track

Tesla’s Supercharger network of 6,500 charging stations worldwide is widely considered one of the most robust and reliable services in the industry, and has become a key selling point for the electric car brand.

The service’s growth was disrupted this spring when Tesla abruptly laid off its entire Supercharger team, along with its head Rebecca Tinucci, as part of a company-wide layoff, according to people familiar with the matter.

The decision created chaos across the industry, halting construction on some Supercharger sites that were underway and creating confusion for property owners who were in the middle of negotiations at the time of the job cuts.

Months later, Tesla is trying to get back on track with a smaller team and new leadership for the group. Their mission is the same as before — expanding Tesla’s network. Only now they have to do it with fewer employees, the people said.

Musk has tried to reassure customers that Tesla will continue to expand the service, but at a slower pace for new locations. In May, he said the company plans to spend more than $500 million to improve the network with thousands of new chargers this year.

“This is just for new locations and expansions, not counting operating costs, which are significantly higher,” Musk said.

The reality is more complicated. For the first few weeks after the layoffs, Tesla partners and contractors had difficulty reaching their contacts at Tesla, most of whom no longer worked at the company or had access to email.

In late May, Tesla re-hired several senior members of its Supercharger team, including Max de Zegher, who heads the program, and a handful of executives who run it in North America.

Mike Snyder, a longtime Tesla executive who previously ran Tesla’s industrial battery program, has taken over the charging group, according to an organizational chart seen by The Wall Street Journal. He now oversees several programs that were once under Drew Baglino, Tesla’s former senior vice president of energy, who left in April.

Construction on Supercharger stations continues across the country, according to people involved in the talks, and the team has continued to recruit former workers in recent weeks.

Network expansion

A further slowdown could impact the EV charging experience across the industry.

Tesla in late 2023 agreed to make its charging service available to other automakers for the first time. The move also allowed Tesla to qualify for a share of billions of federal dollars available to expand the nation’s electric vehicle charging infrastructure.

So far, the company has raised about $37 million in public funding to build 88 Supercharger stations across the U.S., making it one of the top beneficiaries of a federal program aimed at expanding access to electric vehicle charging, according to EVAdoption, which tracks funding.

Some of that money was distributed through state programs after layoffs. In August, Tesla received $2.9 million to install six charging stations in Arizona. A month earlier, it received $1.8 million from Maryland to install fast chargers, which can recharge electric vehicles in about 30 minutes.

Tesla’s need for expansion is becoming increasingly apparent as more automakers look to join the network. Tesla drivers are already worried about congestion at existing stations and the possibility of longer wait times.

The company opened its network of chargers to Ford and Rivian drivers earlier this year. It also planned to expand access to General Motors, Volvo Cars and Polestar by spring 2024, but said on its website that those additions would come soon.

“That was one of the downsides of opening up the network to non-Tesla owners,” said Brent Gruber, executive director of electric vehicles at J.D. Power, which tracks charging satisfaction. “They no longer had access to that exclusive club. Now they’re sharing it with other owners.”

Write to Becky Peterson at [email protected]