Tesla Fires Supercharger Head After Meeting with Elon Musk
On May 16th Beijing time, according to four former Tesla Supercharger network employees, Rebecca Tinucci, the head of charging operations, met with Elon Musk the day before Musk almost fired the entire Supercharger electric vehicle charging department. They had high hopes for the future of the network.
As part of a wide-ranging Tesla layoff, Tinucci had already cut 15% to 20% of the charging department two weeks ago. Employees believed Musk would confirm plans to massively expand the charging network during the meeting with Tinucci.
Team Cut as a Whole
However, the meeting went very badly. Employees said Musk was dissatisfied with Tinucci's work report and wanted more layoffs. But she was reluctant, believing further cuts would undermine the fundamental aspects of the charging business. Musk's response was to fire Tinucci and her entire team of 500.
Tinucci is one of the few female executives at Tesla. According to four former Supercharger team members, after battery and energy chief Drew Baglino left, Tinucci recently started reporting directly to Musk. They said Baglino had previously been in charge of the charging department, with little interference from Musk.
The mass layoffs of the charging team mark Tesla's latest dramatic event in a tumultuous year. Musk has shut down or delayed several core efforts aimed at rapidly increasing electric vehicle sales, which investors were hoping to see. Instead, Musk now says Tesla will focus on self-driving cars, a fiercely competitive, more risky business that may take years to develop.
These departures will severely damage the backbone of Tesla's Supercharger, widely seen as a key driver of the company's electric vehicle sales. US federal statistics show Tesla's Superchargers account for over 60% of high-speed chargers in the US. So far, Tesla has been the biggest beneficiary of the federal government's $5 billion investment in new charging stations.
Suspending Project Construction
Despite the large-scale layoffs in the charging department, Musk continues to post on social media, promising to expand the network. However, three former members of the charging team told Reuters they have been dealing with calls from suppliers, contractors, and utility companies, some of which have already spent millions helping to expand the Tesla charging network.
A copy of an email seen by Reuters shows that earlier this month, a Tesla global supply manager sent a letter to Supercharger contractors and suppliers instructing them to please pause any new construction projects awarded and halt material procurement, saying, I understand that this period of change may be full of challenges, but impatient can't eat hot tofu.
Three former Tesla employees said the Tesla energy team took over Supercharger and urged some partners to stop ongoing charging station construction projects. The Tesla energy team previously focused on selling solar and storage products to homes and businesses.
A construction contractor said since Tesla layoffs, the Tesla employees he contacted don't know anything. He originally expected the Supercharger project to provide about 20% of his revenue in 2024, but now plans to diversify his business to avoid relying on Tesla.
Big Budget Cuts
Two former Tesla employees said the Tesla energy team taking over charging network management also has some similar design and construction functions. But they said charging projects are fundamentally different as they are located in public places and require extensive negotiations with utility companies, local governments, and landowners.
According to two former charging network employees, the energy team has struggled to keep up with the current workload. However, when news of layoffs broke on April 30th, Musk said in a post that the company still plans to expand the Supercharger network, just at a slower pace. Last Friday, Musk posted again, stating, Tesla will invest far more than $500 million to expand our Supercharger network, building thousands of new charging stalls this year.
Two former Supercharger employees said the $500 million expansion budget is far below the team's 2024 budget goal, but still a challenge as it requires hundreds of employees. San Francisco research firm EV Adoption estimates the $500 million investment this year will result in a 77% reduction in the number of charging stalls Tesla builds in the US monthly compared to April.
As of press time, Tesla, Musk, and Tinucci have not commented on the matter.