Tesla Retracts Supercharger Leases Amidst Layoffs and Financial Struggles

Tesla, the renowned electric vehicle manufacturer, is reportedly pulling out of its Supercharger leases following the recent layoffs of its entire Supercharger team. This move comes as a surprise, given the Supercharger network’s critical role in Tesla’s value proposition.

Earlier this week, news broke that Tesla CEO Elon Musk was conducting another round of layoffs, which included the dismissal of the senior director of EV charging, Rebecca Tinucci, along with her 500-person team. Following this, Tesla has reportedly backed out of four Supercharger location leases across the New York City area that were intended to address overcrowding at existing lots.

This decision could make charging a Tesla at a Supercharger increasingly challenging, a direct result of Musk making significant cuts across the board due to declining sales and a bleak financial outlook. The move is particularly perplexing because Musk had previously been a strong public advocate for the Supercharger vision, even discussing plans to open burger restaurants at the locations so drivers could dine while their EVs charged.

Overcrowding at Superchargers, especially in busy city centers, has become a significant issue. The situation worsened when New York City passed new incentives to electrify ride-sharing vehicles. Tesla had promised to install 100 additional chargers around the city by the end of 2024. However, given the latest news, those sites will likely never be realized, at least not by Tesla.

EV charging company Revel has already expressed interest in taking over three of the four sites where initial work had already begun.

Read more at: futurism.com