On April 23, 2024, a Tesla Supercharger station near the Circle K gas station in Austin, Texas.
Brandon Bell | Getty Images
Tesla shares fell nearly 6% on Tuesday following news that Chief Executive Elon Musk was pushing for further layoffs at the company. Teslaaffecting approximately 500 employees on the Supercharger team.
The stock closed at $183.28, down 26% this year.
according to informationAfterwards, Musk sent an email to Tesla managers overnight announcing the departure of key executives, including Rebecca Tinucci, senior director of electric vehicle charging, and Daniel Ho, vehicle project director. In the email, Musk also expressed shock that Tesla management did not follow his instructions to streamline the company’s workforce more quickly.
Several laid off employees and one employee who still works at Tesla in California confirmed details of the ongoing reorganization to CNBC, requesting anonymity to discuss sensitive matters. Other laid-off Tesla employees have spoken out about Tesla shrinking its Supercharger team.
In cutting back on this group, Tesla revealed that it is limiting the expansion of its Supercharger network in the United States. Ford, General Motors and other industry players ensure that they will use Tesla NACS (North American Charging Standard) to build their vehicles to be compatible with Tesla charging stations and allow customers of these companies to use Tesla charging stations.
The ongoing layoffs are part of Tesla’s massive cost-cutting measures, which saw revenue fall 9% in the first quarter of this year, its largest year-over-year decline since 2012. Tesla discounts cars and issues incentives to stimulate demand.
Current and former employees told CNBC that Tesla began laying off employees as early as January, and the layoffs expanded this month. They said some colleagues who believed their jobs were safe received pink slips on Friday and Tuesday.
Tesla did not warn investors about the withdrawal of plans to build charging infrastructure. The company also failed to warn some of its charging network partners, including small and medium-sized businesses that install and maintain electric vehicle charging equipment for Tesla at key locations across the United States.
“My team woke up this morning and it was a shock,” Andres Pinter, co-CEO of Supercharger network contractor Bullet EV, told CNBC. Emails sent from the contact all bounced back with the same auto-reply that read, “This email address is no longer valid. Any future emails sent to this address will not be received. “
Pinter said he believed “it will take years for other charging networks to catch up,” but Tesla abandoned near-term plans to aggressively expand in the U.S., leaving room for other players.
Musk wrote on
Tesla makes money from environmental credits and charging fees and already operates about a third of public electric vehicle charging stations in the United States
According to nonprofit estimates, transportation is responsible for 25% of global carbon emissions from human activities. international council on clean transportation.While Musk has recently spoken about Tesla’s artificial intelligence plans and its pursuit of developing self-driving technology, the company reiterated in its statement annual report It announced this week that its mission is to “accelerate the world’s transition to sustainable energy.”
Tesla shares fell on Tuesday after rising 15% on Monday, its best trading day of the year. The rally came after news reported that Musk was visiting China to strike a major deal with China. Baidu Provide mapping technology for Tesla’s future self-driving software.
Tesla has long promised but not yet delivered self-driving cars.
JL Warren Capital founder Li Junheng wrote in a note to investors this week that there were too many “key details missing” to justify Monday’s gains. “We believe that localized FSD adoption and incremental revenue will be significantly lower in China than in the U.S., assuming similar levels of autonomous driving to TSLA’s latest v12.”
Xpeng Motors, NIO and other EV makers currently offer Level 2 systems as an incentive for Chinese buyers.
watch: Tesla’s tentative self-driving deal in China not enough to make it ‘grand’
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