Tesla has reportedly terminated its entire Supercharger division, according to statements from former team members.
The company operates over 50,000 Superchargers around the world, constituting the largest fast-charging network for electric vehicles globally.
CEO Elon Musk previously announced that the company would reduce its workforce by 10%, citing intense competition from more affordable competitors.
In a memo initially reported by The Information, Musk emphasized the need for rigorous cost-cutting measures.
The BBC has reached out to Tesla for a statement.
Several former employees have verified their dismissal from the division, which comprised hundreds of staff responsible for the design and global deployment of the chargers.
William Jameson, strategic charging programs lead at Tesla, posted on X that Mr Musk had “let our entire charging org go”.
“What a wild ride it has been”, he wrote.
Also writing on X, Mr Musk said the company still planned to grow the Supercharger network, “just at a slower pace for new locations.”
Drivers think twice
Steve Gooding, director of the RAC Foundation, said Tesla’s move could dent the confidence of prospective electric car buyers.
“You need reassurance that the people selling you the vehicles see a strong future for the technology,” he said.
“If manufacturers are reining back their ambitions then it means drivers might think twice about going electric or at least delay a purchase until they see more positive news.”
Andres Pinter, chief executive of Bullet EV Charging Solutions, a supplier to the charging network said that his team “woke up to a sharp kick in the pants this morning,” Reuters reported.
He speculated that Mr Musk could “reconstitute the EV charger team in bigger, badder, more Muskian way” in order to continue to benefit from US government funding to develop the network.
Tesla’s charging network is considered a leader in the industry, and it recently negotiated agreements with various competing automakers in North America to adopt its “NACS” charging standard, allowing their vehicles to utilize the network.
Fred Lambert, the editor-in-chief of the electric vehicle news website Electrek, expressed his confusion about the decision on social media, stating he was “extremely perplexed” by the move.
“If one thing was a clear success at Tesla, it’s the Supercharger network. Even from a talent perspective. No other charging team in the world has been able to do what Tesla did,” he wrote.
The quality and reach of the Supercharger network has long been a huge advantage for Tesla, James Attwood, acting magazine editor of Autocar, told the BBC.
It was “a key selling point for potential buyers” he added.
“But with regulators in both Europe and the US pushing the firm to open the Supercharger network to owners of other electric vehicles, it will offer less of an advantage in the future.”
Last year, major car manufacturers such as Mercedes, Honda, BMW, and Hyundai-Kia formed a joint venture to establish a competing fast-charging network.
In addition to downsizing the Supercharger department, Tesla will also eliminate its entire public policy unit, according to a report by the Financial Times.
These layoffs occur shortly after the company reported its first quarterly revenue drop since 2021.
This downturn follows a decrease in sales at the company, which is also facing an investigation into the safety of its Autopilot assisted driving system and a recall concerning its latest model, the Cybertruck.