Good luck with that.
Hard Charging
After firing senior director of EV charging Rebecca Tinucci along with her entire 500-person team last month, Tesla CEO Elon Musk has reversed course, claiming the company is still committed to spending “well over” half a billion dollars to grow its flagship network of Superchargers.
“That’s just on new sites and expansions, not counting operations costs, which are much higher,” he added. (He’d earlier said Tesla “still plans to grow the Supercharger network, just at a slower pace for new locations.”)
As expected, Musk didn’t go into detail about his considerable change in tune. The mercurial CEO got major flack — including from some of his most ardent supporters — for tanking a facet of the company that greatly sets it apart from its competitors in the US.
And should we really take him by his latest word? The company is in crisis mode and Musk is seemingly keen on controlling the narrative to reassure spooked investors.
Damage Incorporated
The EV maker’s operations were thrown into chaos last month, with numerous key executives leaving the company following several rounds of mass layoffs.
The company’s sales are in freefall while the rise of Tesla’s many international competitors can no longer be ignored.
The dissolution of Tinucci’s team has hit the company’s reputation particularly hard. After all, Tesla’s relatively reliable fast-charging network is unique in today’s EV infrastructure landscape, at least in the US. Many buyers have cited it as the number one reason for choosing a Tesla.
Whether Musk’s purported $500 million spend will turn things around and allow it to still expand in the future — at the very top of many customers’ wish lists — remains to be seen.
Musk’s decision to scale down the company’s Supercharger efforts is already leaving a massive vacuum behind. Companies, including fossil fuel giant BP, are already frothing at the bit, signaling they’re ready to take over planned Supercharger stations.
And in a big sense, Musk’s latest change of heart highlights the billionaire’s kneejerk and particularly chaotic leadership style.
As Bloomberg points out, it’s far from the first time Musk has completely reversed course. In 2019, he announced that all Tesla stores would close in favor of online-only sales.
He changed his mind just ten days later.
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