What’s Next For Tesla Superchargers After Elon Musk Laid Off The Entire Team
Summary
TLDRTesla's Supercharger network, once considered a significant competitive advantage and a key driver in electric vehicle (EV) adoption, has faced an unexpected restructuring. Despite leading the fast-charging market with a 60% share, Tesla laid off its entire supercharging team, raising concerns about the future of EV charging infrastructure. The decision has left the industry puzzled, as the Supercharger network was seen as one of Tesla's crown jewels. While Tesla plans to continue expanding the network at a slower pace, the move has prompted questions about the company's next steps. The Supercharger network's growth has been crucial for Tesla's brand and customer satisfaction, and its vertical integration has allowed for a seamless charging experience. However, the layoffs coincide with Tesla's broader financial challenges, including slumping sales and increased competition. As the EV market evolves, the impact of this strategic shift on Tesla's position and the charging infrastructure landscape remains to be seen.
Takeaways
- 🚗 Tesla's Supercharger network is considered a significant competitive advantage and a key factor in driving EV adoption.
- 🔌 The Supercharger network is known for its reliability, availability, and seamless user experience, setting the gold standard in EV charging.
- 📉 Despite its lead, Tesla laid off its entire supercharging team, which has raised concerns about the future of the network and its impact on the EV market.
- 🛠️ Tesla's restructuring and the layoffs were part of a broader response to slumping sales and increased competition, with the company's stock down 32% for the year.
- 🌐 Tesla's market share in the U.S. is greater than all other networks combined, accounting for 58% of all DC fast chargers deployed in the previous year.
- 🔌 Tesla has been opening its charging network to other vehicle manufacturers, with Ford and General Motors being granted access to thousands of Superchargers.
- 🔋 Tesla's charging port, the North American Charging Standard (NACS), is becoming the standard for all EVs in North America, facilitating easier integration into the Supercharger network.
- 💰 Analysts predicted that Tesla's charging business could become a major profit driver, with global public charging revenue expected to rise significantly by 2030.
- 🛑 Elon Musk stated that Tesla still plans to grow the Supercharger network, but at a slower pace, which is crucial for the brand's identity and the car business's success.
- 🏗️ Tesla has managed to cut its costs considerably for deploying Superchargers, often having lower costs than alternatives, and has been successful in securing government funding for expansion.
- 🤝 The automotive industry and government funding have shown widespread support for Tesla's charging infrastructure, but the company's recent decision to dismantle its Supercharging team has introduced uncertainty.
Q & A
What is Tesla's Supercharger network considered to be in the context of EV charging?
-Tesla's Supercharger network is considered the gold standard in reliability, availability, and seamlessness for EV charging.
Why was Tesla's decision to lay off its entire supercharging team surprising to many?
-The decision was surprising because Tesla had a significant lead in the fast-charging market with a 60% market share and the Supercharger network was a critical factor in driving the adoption of EVs.
What was the broader context behind Tesla's restructuring that led to the layoffs?
-The layoffs were part of a broader restructuring at Tesla as the company faced slumping sales and increased competition, with Tesla's stock down 32% for the year.
How has Tesla's Supercharger network contributed to the adoption of electric vehicles?
-Tesla's Supercharger network has been critical in driving the adoption of EVs by providing a great charging experience, which is considered the linchpin to electric vehicle adoption.
What is the significance of Tesla opening its charging network to other vehicle manufacturers?
-Opening its network allows Tesla to expand its market reach and tap into additional revenue streams, as well as encouraging more drivers to transition to an emission-free future.
What is the North American Charging Standard (NACS) and why is it important?
-The North American Charging Standard (NACS), also known as the J3400 standard, is a charging port standard that is becoming the norm in North America. It allows for easier integration of different EVs into the supercharging network, promoting standardization and interoperability.
How does Tesla's approach to infrastructure deployment differ from other charging networks?
-Tesla has a laser-like focus on deploying infrastructure where it makes the most sense, leveraging its knowledge of customers and chargers to optimize site selection and usage.
What are the potential financial implications of Tesla's decision to halt the expansion of its Supercharger network?
-The decision could impact Tesla's potential to become a major profit driver in the charging business, as global public charging revenue is projected to rise significantly by 2030.
How does Tesla's dynamic pricing model for Supercharging work?
-Tesla's dynamic pricing model factors in electricity costs, charging power output, and peak or off-peak hours to optimize pricing and profitability.
What role does government funding play in the development of Tesla's Supercharger network?
-Government funding, particularly through the National Electric Vehicle Infrastructure Formula Program, has provided significant support for Tesla to expand its Supercharger network, with Tesla securing a substantial amount of funding for new sites.
What challenges might arise as other EV manufacturers start using Tesla's Supercharger network?
-Challenges include potential congestion at charging sites, the need for longer cables to accommodate different car models, and the possibility of increased wait times for charging.
How does Tesla's decision to lay off its Supercharging team affect consumer and industry confidence?
-The decision raises questions about the future of Tesla's charging network, potentially impacting consumer confidence in Tesla as a brand and the industry's confidence in the availability and reliability of EV charging infrastructure.
Outlines
🚗 Tesla's Supercharger Dominance and Recent Layoffs
Tesla's Supercharger network is recognized as the leading fast-charging network in North America and a significant competitive advantage for the EV manufacturer. Known for its reliability, availability, and seamless user experience, Tesla holds nearly a 60% market share in the fast-charging sector. However, a recent decision by Elon Musk to lay off the entire supercharging team, including top executives, has raised questions about the network's future. This restructuring is part of Tesla's response to declining sales and increased competition, and the move has been described as baffling given Tesla's leading position and the importance of the Supercharger network to EV adoption. Despite the layoffs, Tesla has announced plans to continue expanding the network, albeit at a slower pace.
🔌 The Vertical Integration and Customer Experience of Tesla's Superchargers
Tesla's Supercharger network benefits from the company's vertical integration, with Tesla designing both the cars and the Superchargers, as well as the respective software. This integration ensures a seamless user experience. Tesla owners rely heavily on the Supercharger network, which is often preferred over third-party charging services like Electrify America or EVgo. The network's reliability and well-maintained facilities are a significant draw for Tesla customers. Tesla's approach to charging includes benefits such as battery preconditioning and congestion awareness, and its scale is notable, with an average of 8 to 10 ports per site. Despite the layoffs, Tesla continues to prioritize the expansion of existing locations and has managed to reduce its deployment costs significantly.
💰 Financial and Governmental Support for EV Charging Infrastructure
The construction and maintenance of EV charging stations are expensive endeavors, with costs varying widely depending on the type of charging and power infrastructure. However, Tesla has managed to reduce its costs considerably, often being 20% to 70% lower than alternatives. The company has also benefited from government funding, such as the National Electric Vehicle Infrastructure Formula Program, which has provided insights into Tesla's costs compared to competitors. Tesla's charging business, which uses dynamic pricing, is believed to be profitable and has been identified as a significant profit generator for the company. The U.S. government's infrastructure bill has also spurred the development of EV charging infrastructure, aiming to standardize charging experience and improve uptime requirements.
🔌 Expansion and Standardization of Tesla's Supercharger Network
Tesla has been expanding its Supercharger network and has begun allowing non-Tesla EV owners to charge at its sites, starting with a pilot program in the Netherlands and later expanding throughout Europe and the U.S. This move grants Tesla access to federal funds and is part of a nationwide effort to build a charging network. Tesla's decision to open its network has been well-received, with companies like Ford and GM signing deals to use Tesla's Superchargers. However, this expansion has also presented challenges, such as the need for longer cables and the potential for increased congestion at charging sites. The adoption of the North American Charging Standard (NACS) by other automakers is expected to accelerate the adoption of electric vehicles and benefit the overall market.
🛠️ The Impact of Tesla's Supercharger Team Layoffs on the EV Charging Industry
The sudden layoffs of Tesla's Supercharging team have left stakeholders, including customers and contractors, in a state of uncertainty. Tesla customers rely on the extensive Supercharger network as a key selling point, and the decision to halt expansion raises concerns about the future of charging infrastructure. Tesla's maintenance team remains intact, and the company will continue to support existing sites. However, the lack of an internal team may lead to outsourcing the development of new sites. The decision also places more responsibility on the EV charging industry, which may not be prepared to take on the Supercharger network's mantle. Tesla's policy team, which worked closely with the charging team, was adept at navigating infrastructure rollout challenges, and the loss of this expertise could impact future development. Meanwhile, competition in the charging space is growing, with companies like Ionna, Mercedes, Rivian, and Shell Recharge entering the market.
🌐 The Future of Charging Infrastructure and Tesla's Strategic Move
As more charging infrastructure is built, the experience for EV users is expected to improve with standardized software, communications, payment processing, and plugs. The industry is anticipating consolidation, and opinions are divided on whether Elon Musk's decision to disband the Supercharger team is a strategic masterstroke or a misstep. Tesla's leadership in North America has been crucial, and the company's strategy shift leaves questions about the future direction of charging infrastructure. While some view Musk's move as a complex strategic play, the true impact of this change will only be understood with time as the EV market and charging infrastructure continue to evolve.
Mindmap
Keywords
💡Supercharger network
💡Market share
💡Layoffs
💡Restructuring
💡EV adoption
💡Vertical integration
💡Destination chargers
💡V3 Superchargers
💡Dynamic pricing
💡Federal funding
💡Standardization
Highlights
Tesla's Supercharging network is the largest fast-charging network in North America and a major competitive advantage for the company.
The Supercharger network is considered the gold standard in reliability, availability, and seamlessness for EV charging.
Tesla holds nearly a 60% market share in the fast-charging market.
Elon Musk laid off Tesla's entire supercharging team, including about 500 people and top executives, raising questions about the network's future.
The decision to dismantle the Supercharging team was surprising given Tesla's lead in EV charging and the network's importance to customer satisfaction.
The layoffs were part of a broader restructuring at Tesla due to slumping sales and increased competition.
Tesla's Supercharger network was critical in driving the adoption of electric vehicles.
Tesla has deployed around 40,000 destination chargers at hotels, apartments and other locations where people park for longer periods.
Tesla's V3 Superchargers, introduced in 2019, provide up to 250kW of power.
Tesla's vertical integration allows for a seamless end-to-end user experience when charging.
Tesla's Supercharger network is highly regarded for its reliability and well-maintained facilities.
Tesla recently opened up its Supercharger network to other vehicle manufacturers, including Ford and General Motors.
Tesla's charging port, the North American Charging Standard (NACS), is becoming the standard on all EVs in North America.
Analysts believe Tesla's charging business was set to become a major profit driver for the company, with global public charging revenue projected to reach $127 billion by 2030.
Tesla has managed to significantly cut its costs for deploying Superchargers, with costs often 20-70% lower than alternatives.
Tesla has received around $12 million in federal funding so far for building out its charging network.
The Biden administration aims to grow the national charging network to 500,000 stations by 2030.
Tesla's decision to gut the Supercharger team raises concerns about the future expansion and reliability of the network.
The move could place more responsibility on an industry that may not be ready to take on the Supercharger network's mantle.
Tesla faces growing competition in the charging space from companies like Ionity, Mercedes, Rivian, and Shell Recharge.
Experts predict that increased infrastructure buildout across the board will improve the charging experience for all EV users.
Transcripts
Tesla's global Supercharging network is the largest fast
charging network in North America, and it's often cited
as the EV makers biggest competitive advantage.
Tesla's Supercharger network, in part because they could
design all the parts of it, is the gold standard in
reliability and availability, and in seamlessness for EV
charging.
In the fast charging market, it's just Tesla leading the
way by almost a 60% market share.
But at the end of April, Elon Musk let go of Tesla's entire
supercharging team, laying off about 500 people,
including top executives.
Now its future is in question.
This decision has rocked the foundation of what everybody
believes about EV charging.
It's baffling.
Because they they do have such a lead and such a head start
and such a easy way to deploy, and the satisfaction
behind the user experience to have the rug pulled out from
under this, it is really confusing.
I would describe the Supercharger network as one of
the crown jewels of Tesla, and instead of doing victory
laps and building the Supercharger network and
reaping the benefits of this, this asset, suddenly there's
this pause.
The layoffs were part of a broader restructuring
happening at Tesla, as the company reckons with slumping
sales and increased competition.
Tesla's stock is down 32% for the year so far.
But cutting the Supercharging team was especially surprising
to many. The supercharging network was critical in
driving the adoption of EVs.
Tesla's now former senior director of EV charging,
Rebecca Tinucci, spoke about the success of the network at
last year's Investor Day.
At Tesla charging we have understood since day one that
a great charging experience is the linchpin to electric
vehicle adoption. We've spent ten years building charging
infrastructure when basically no one else in the industry
would do it. Those ten years have afforded us the
opportunity to get pretty good at charging.
When we're talking about electric cars, what we're
asking the public to buy into isn't really a new car.
It is a new fuel source.
Tesla was the gold standard in making that simple, and
they still are, arguably.
And so to see that their ecosystem is being somewhat
dismantled, it begs to question what is the next step
for Tesla as a company?
In the U.S., Tesla's market share and growth are greater
than all other networks combined, accounting for 58%
of all DC fast chargers deployed last year.
They also just recently announced that they're opening
up their charging network to other vehicle manufacturers.
Ford owners will be granted access to thousands of Tesla
Superchargers across the United States and Canada.
General Motors EVs will have access to about 12,000 Tesla
Superchargers. Yet another automaker saying, you know
what? Let's just go with Tesla.
Tesla's charging port, the North American Charging
Standard, or NACS, is now even becoming the standard in
North America on all EVs so that Ford, GM, and others can
more easily integrate into the super charging network.
The whole intent of the industry switching to this
connector type was for the growth and opportunity of what
it would mean for standardization around their
plug. That raises a lot of questions for consumer
confidence as well as industry confidence.
Analysts believe Tesla's charging business was set to
become a major profit driver for the company.
It is estimated that global public charging revenue will
rise to $127 billion by 2030, with Tesla thought to own $7.4
billion of that, Elon Musk said Tesla still plans to grow
the supercharger network just at a slower pace.
You can't have a Tesla the auto brand without Tesla the
Supercharger network permanently stopping the
growth of the Supercharger network is suicide for the car
business. They go hand in hand, in my opinion.
Tesla launched the Supercharging tetwork on
September 24th, 2012, with six sites in California.
Coinciding with the Model S entering production.
The network was free to use as an incentive for early
adopters.
You buy a car, you get our charging, you have a full
package. It's basically an Apple ecosystem effect.
Everything works together.
It's very nicely integrated.
By mid 2013, Tesla started building Superchargers in high
traffic corridors in Europe and Asia.
At the start of 2024, Tesla announced it had 6,000
charging stations with around 55,000 Superchargers.
Alongside its Superchargers, Tesla has widely deployed
around 40,000 destination chargers, lower power plugs
installed at hotels, apartments and other spaces
where people park for longer periods of time.
That type of infrastructure is not terribly expensive.
The majority of Tesla's charging network
infrastructure features its V3 Superchargers, which were
introduced in 2019 and provide up to 250kW.
It recently started rolling out its V4 Superchargers,
which are capable of delivering even more power in
Europe last year and has brought a handful online in
the U.S. this year.
They designed the cars and the software that they ran on, but
it also designed the Superchargers and the software
that ran them. And those two sets of software talked very
closely to each other.
This vertical integration has allowed Tesla to create a
seamless end to end user experience when owners charge
their cars.
I solely rely on Tesla Supercharging stations, and I
have used multiple third party companies such as
Electrify America, EVgo, ChargePoint, and they just do
not compare to Tesla's Supercharger network.
I feel sorry for people that don't drive a Tesla that have
an electric car, because Tesla does maintain their
facilities beautifully.
There's nothing else like it, right here in Santa Monica,
we've got a restroom and a place where you can get food.
They attracted customers with these sexy looking cars, but
the repeat buyers and the cult like following, that's a
result of the Tesla experience.
And a lot of the Tesla experience has to do with with
the Supercharger network, just the ubiquity of it and
the reliability of it.
For other charging providers, emulating this experience is
difficult, since they're having to design for multiple
car models with varying software and charging
protocols.
With Electrify America and with all the other networks,
to a greater or lesser extent, there is a certain
amount of discontent among EV drivers about reliability.
So there's a lot more software now that's being
added into diagnosed problems to let them know what's going
on.
With Tesla it'll tell you how many stalls there are, how
many are in use.
Whereas I've used Electrify America, I'll open up the app
and it says that it is available and I'll pull up and
someone's in there. The stall may actually be out of
service, not even functional.
Tesla also built in other benefits to its system, such
as battery preconditioning and congestion awareness.
Other electric vehicle manufacturers, well some of
them, have vehicle side data.
Other infrastructure providers have site data, but
at Tesla we have both.
And perhaps most important - scale.
Other charging networks, they would have a maximum of four
charging ports at a site.
Tesla, it's between 8 to 10 ports per site on average.
Musk said that expansion of existing locations will remain
a priority. Tesla installed around 12,000 chargers a year
for the last few years globally.
When it comes to figuring out where to put the
infrastructure, Tesla does it better than anybody else.
They know everything about their customers.
They know everything about their chargers.
That gives them laser like focus on figuring out where
does it make sense for them to put their infrastructure.
So why did Tesla gut the Supercharger team then?
Perhaps it just didn't make sense financially for the
company.
In the early days, Tesla's Supercharging network was
predicted to lose money.
The construction and maintenance of EV charging
stations can be expensive, with prices varying widely
depending on the type of charging and power
infrastructure being built.
Installing EV charging is really expensive today.
We're not at mass market yet in terms of costs.
We are still seeing around 250,000 being the benchmark
for high power.
Charging, actually the main cost, believe it or not, is
not the charger itself. The main cost is what you need to
bring from the grid.
You have to do site prep, you have to trench power lines and
more importantly, the electric utility either has to
have high voltage power near the site or they have to bring
it in.
However, Tesla did say that it has managed to cut its costs
considerably.
We have the industry's lowest deployment costs.
Our costs are often 20%, if not 70% lower than
alternatives.
While it hasn't publicly disclosed supercharger
construction costs, government funding through the
National Electric Vehicle Infrastructure Formula Program
has provided a window onto Tesla's costs compared to its
competitors.
Tesla is really bidding 50% lower than any other network
out there for NEVI funding, which is why they've got the
most amount of funding to date.
For Supercharging, Tesla uses dynamic pricing that factors
in the electricity costs, charging power output, and
peak or off peak hours.
Musk has indicated Tesla aims for about 30% gross margin, or
around 10% profitability on its superchargers.
Tesla doesn't break out revenue from its charging
business, bundling it in its Services and other business.
But it has called it out in recent earnings statements,
saying "pay per use supercharging remains
profitable" and that it was part of 2023 biggest profit
generators, helping contribute to the nearly $500
million in gross profit for the segment.
In the U.S., charging infrastructure is getting a
boost from federal funding, which Tesla has been
aggressively pursuing.
They've got around $12 million in NEVI funding so far for
around 30 sites in comparison to a lot of the others.
So they've got the most amount of funding.
The Biden administration's Charging and Fueling
Infrastructure and the National Electric Vehicle
Infrastructure Formula programs are part of President
Biden's goal of growing the national charging network to
500,000 stations by 2030.
So far, states have allocated $1.5 billion in funding for
2022 and 2023 to support the construction of chargers, with
an additional $885 million for 2024.
Government funding in the infrastructure bill has
spurred a lot of work around creating electric vehicle
charging infrastructure, but given how long ago it was
announced, it has taken a while simply due to process.
In addition to supporting the development of charging
infrastructure, the programs also hope to address some of
the pain points common.
Today.
We're seeing standardization for uptime requirements
requiring 97% uptime on all federally funded chargers,
also requiring payment systems to be installed on
these chargers directly. Trying to push towards having
a more seamless charging experience for all EV drivers
in the U.S. Today.
Tesla has said "it's always been our ambition to open the
Supercharger network to all EVs and by doing so, encourage
more drivers to rapidly transition to an emission free
future." It started with making moves on that promise
in 2021, with a pilot program in the Netherlands that
allowed non-Tesla EV owners to charge at ten Supercharger
sites. After a successful run, it began expanding access
throughout Europe in 2022.
In the states, as President Biden announced new standards
for EV charging funded by the Bipartisan Infrastructure Law,
it was revealed that Tesla would be opening part of its
network. The move would grant Tesla access to federal funds
as part of the effort to build out a nationwide
charging network.
Tesla if they go after NEVI funding, they would have to
allow more vehicles to charge at these chargers, and that's
the biggest reason why I think Tesla would open up the
network to other automakers.
In 2023, Ford announced a deal with Tesla to leverage its
superchargers for Ford EV customers.
Owners would need a Tesla developed adapter to give its
CCS ports compatibility with Tesla chargers.
Ford and Tesla stunned the industry by saying, we have
arranged for Fords to have access to Tesla's Supercharger
network nationwide over time.
It's been a pretty bulletproof rollout.
Ford owners seem to be uniformly happy.
Shortly after its announcement, GM also said it
would work with Tesla. CEO Mary Barra said it will save
the company $400 million of a planned investment in building
out EV charging in the U.S.
and Canada.
Every other maker has pretty much said yes.
We will give our folks access to the Tesla network.
As other EV owners have started using the supercharger
network, it has presented some challenges.
Regrettably, they have to park crosswise in two spaces
because Tesla designed all of the superchargers that are out
there now, with cables that are just long enough to reach
the left rear corner of a Tesla, the new Tesla
Superchargers that are rolling out will have longer
cables.
There have been complaints about lines at Tesla stations,
with access being granted to more EVs, congestion at
charging sites is a growing concern.
It's going to be interesting to see how Tesla owners handle
a fairly large influx, and Tesla's managing it.
They're rolling out each car company at a time.
In the U.S., every automaker besides Tesla has been using
the CCS connector, meaning anyone using Tesla's network
will need an adapter, but that is quickly changing.
SAE International, an association that sets
technical standards for aircraft and vehicles, worked
with Tesla to standardize NACS, now named the J3400
standard. Ford was the first to adopt Tesla's connector,
with GM signing on in June 2023.
We plan to adopt the North American charging standard,
and we're working really hard that our first vehicle will
come in 2025.
Almost every other automaker has agreed to adopt NACS in
its vehicles either this year or in 2025.
The convergence of everybody on a single standard in the
U.S. is a hugely positive thing, that will accelerate
adoption of electric vehicles.
When you combine the the NACS plug with opening up their
chargers to everybody else, I think that's just a it's a
massive win for Tesla for sure.
But I think for the consumer and for the marketplace, I
think it's a massive win for everybody else as well.
In October 2023, BP announced it had ordered $100 million of
Tesla's ultra fast chargers.
It's the first time Tesla's chargers will be deployed by
an independent EV charging network and will be installed
at key BP, Amoco, AM PM, Thorntons, TravelCenters of
America and other charging locations.
Between widespread support across the U.S.
Automotive industry and a surge in government funds to
build new sites, it seemed Tesla's charging business was
on the verge of going stratospheric, but then
everything came crashing down.
Elon Musk has surprised markets and the auto industry
by scrapping the unit responsible for Tesla's
charging network.
In an email announcing the layoffs, elon Musk said we
will continue to build out some new Supercharger
locations where critical and finish those currently under
construction.
I wonder how that's going to impact my decision for having
purchased a Tesla, because that's one of the selling
points, right? Is that, you know you have this really
cool, extensive network where you can charge and it's
seamless.
THe Supercharging network is like the lifeline for the
Tesla cars. You got to keep that team.
The ideal is that there will be more charging stations.
I've been on the fence about whether or not I'll get
another Tesla, but that honestly pushes me over the
edge.
This is taking the place of gas stations and you need a
whole lot more. You can make so many billions of dollars.
This is not no time to lay them off.
Stop playing around. I think it's time for Elon to take a
break.
For employees and contractors working with Tesla, the news
was sudden and unexpected.
My business partner, he was driving to a Tesla
Supercharger site that we're doing right now, and he got a
call from our construction lead at Tesla telling him to
turn around, his entire division had been laid off,
and Mark should go home and go pencil down on the project
until we find out what's going on.
Andres Pinter owns a residential and commercial
charging installation business, and has worked with
Tesla on several installation projects in Texas.
We contacted everybody that we know at Tesla.
Every single one of those emails bounced.
We have a number of open purchase orders of jobs we're
working on for Tesla.
I think they'll complete those jobs, and quite frankly,
it's a liability for the company to have open permits,
open construction sites.
It's just it's sloppy.
They're not going to do that.
Without an internal team, some predict Tesla will outsource
development of new sites.
We would love to take on the responsibility of building
that supercharger network for Tesla.
I think there's a lot of contractors that probably have
ambition and ability to do it.
Tesla reportedly left its Supercharger maintenance team
intact and says it will support existing sites.
Maintaining the Supercharger network looks easy, but
there's a lot of people involved and a lot of
resources. Tesla's got it down to a science.
I think that the suppliers they work with on the
maintenance, and particularly the software that they employ,
is key to maximizing the uptime.
If Tesla's going to maintain the existing supercharger
network with a team of whatever size that might be,
that will give drivers, I think, confidence, but we're
going to be selling millions of more EVs down the road.
So that then asks, how well will this existing network
stand up to that additional use by more brands from other
automakers?
I do a lot of driving, so I have been to a lot of
supercharger stations. There's a lot of chargers that
don't work, so they got to get their customer service
down. The response is terrible.
It's just like a run around in circles.
I just stopped trying to contact them.
It's just a waste of time.
Now we're possibly, potentially adding charging
being a problem and congestion and people having
to wait. I don't know man.
Like me personally. I'd just go get a Mercedes.
It's already strained in certain urban areas such as
New York, Los Angeles, San Francisco, to now know that
that expansion is going to be really halted.
It then leans on third party charging networks.
It's too early to tell what the full impact of Tesla's
decision will be, but some believe it will place more
responsibility on an industry not ready to take on the
mantle of the Supercharger network.
Without having the brain trust at Tesla that's been rolling
that out and making it possible. We are going to then
rely on industry to pick up the slack.
One of the biggest hurdles the industry faces is
infrastructure policy.
Tesla's policy team worked hand in hand with its charging
team in the deployment of the supercharging network.
The policy team was able to navigate a lot of what are
typical red tape problems as it relates to infrastructure
rollout, that third party networks still battle on a
regular basis. Tesla's team had become very, very savvy in
how to navigate that on a federal and state level.
But to blow up their own closed ecosystem that was
working so elegantly is baffling.
Tesla does have growing competition in the charging
space. While it enjoyed dominance in its home market,
it is a smaller player in Europe and China.
And there are companies with the ambition to catch up and
exceed the Tesla Supercharger network.
There's Ionna, the joint venture between GM, Hyundai
and a number of other auto OEMs. Mercedes is a deep
pocketed competitor that's building their own
supercharger network. Rivian's building their own
supercharger network.
Last summer, several legacy automakers joined together to
form a new joint venture to create a network of 30,000
plus chargers in North America, with the first
stations expected to open this summer.
In 2019, shell acquired LA based charging company
Greenlots and has started installing chargers at its gas
stations as part of the Shell Recharge network.
In the UK, it is converting a gas station to a full EV
charging one.
Oil and gas and retail is the next biggest growth sector
that we're seeing today with shell, BP, Circle-k, 7-Eleven
all trying to enter this space not just to make money
off EV charging, but really trying to make the money off
the dwell times.
An EV driver is likely going to dwell there for longer than
they will at a gas station.
The smart charging providers will see that there is going
to be a way to squeeze a lot more money out of the wallet
of their travelers.
With more infrastructure being built out across the board,
experts predict it will improve the charging
experience for everyone.
The software is going to be standardized, the
communications is going to be standardized, the payment
processing is going to be standardized.
The plugs are becoming standardized.
There definitely needs to be some sort of consolidation.
And only time will tell whether Musk's radical change
in Supercharging strategy is the right one for Tesla.
In my opinion. Mr.
Musk is playing three dimensional chess, and he just
made a move that none of us comprehend yet.
Some will interpret it as a brilliant move, some will
interpret it as a bonehead move and only time will tell.
We have really relied on Tesla's leadership here in
North America, and I think to all of a sudden have that
seemingly halted.
That brings into question where do we go from here and
who will step up the way that Tesla has?
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