Tesla lays off entire Supercharger and new vehicles teams, weeks after previous cuts

midian182

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What just happened? Tesla is making its second round of mass layoffs in just two weeks. This time, it's the Supercharger team that is being let go, along with the head of new vehicle development and everyone who worked for them.

Rebecca Tinucci, Tesla's senior director of EV charging, will be leaving the automaker. Being shown the door alongside Tinucci will be all 500 members of the team that reported to her, writes The Information.

Tinucci's push to gain support from other manufacturers in adopting Tesla's North American Charging Standard (NACS) earned her a place on the TIME 100 Climate list and the number 2 spot on Motor Trend's auto industry power list, notes Electrek. The Supercharger network is viewed as one of Tesla's most successful elements, so removing the team behind it comes as a surprise.

The email sent by Musk informing the executives of the layoffs also states that Tesla will continue to build out some new Superchargers and finish those under construction. In a post on his X platform, Musk wrote that Tesla still plans to grow the network, just at a slower pace and with more focus on 100% uptime.

Daniel Ho, Director of Vehicle Programs and New Product Initiatives, is also being laid off from Tesla after a 10-year stint. Ho was program manager for the Model S, 3 and Y before being placed in charge of all new vehicles. His entire team, made up of an unknown number of people, will be laid off.

Tesla's public policy team is also being dissolved. Rohan Patel, the former VP of the team, left the company two weeks ago when the previous cuts were announced.

"Hopefully these actions are making it clear that we need to be absolutely hard core about headcount and cost reduction," Musk wrote in the email, the report said. "While some on exec staff are taking this seriously, most are not yet doing so."

Musk added in the email that executives with more than three team members who "don't obviously pass the excellent, necessary and trustworthy test" would be asked to resign.

It was mid-April when Tesla said it was eliminating more than 10% of its global workforce, meaning at least 14,000 workers were being pushed out. Tesla recorded first-quarter vehicle deliveries of 386,810 last month, fewer than what analysts had been expecting. Deliveries were down 20% in Q1 compared to the previous quarter and more than 8% compared to the same quarter a year earlier, marking the automaker's first year-over-year decline since 2020. The sales dip saw profits fall 55%.

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Tesla should have concentrated on making their few models better before releasing new vehicles like the cyber truck.
 
Well, what else was there to expect, demand is falling, nothing else to do.
Some would say they could lower prices. But even with batteries rapidly becoming cheaper, there are thousands of other parts and they have no reason to become drastically cheaper too.
 
Tesla should have concentrated on making their few models better before releasing new vehicles like the cyber truck.
Is that how you built your trillion-dollar auto firm? The Cybertruck racked up nearly two million pre-orders (some estimates are 3 million) -- one of the most highly-anticipated vehicles of all time. And profit margins on the Cybertruck are considerably higher than those on Tesla's low-end base models.
 
Tesla should have concentrated on making their few models better before releasing new vehicles like the cyber truck.
No, they should've concentrated on models that actually make sense. They have too few models, not too many.

Even among them, the Model X and S are basically non-existent sales-wise, so we're talking about just 2 models. And they're already outdated. And the Model 3 refresh is actually worse in certain aspects than the outgoing model, which is quite an accomplishment by itself.

And the Model 3 is not a cheap car either. Maybe it's sort of affordable in the US (heck, leasing is around 9 times more affordable there than in my country), but in other parts of the world, not really.

Not understanding this clearly indicates that Musk has absolutely no idea about the markets outside the US. And it's precisely because of this why sales have stalled. We need a car that's maybe half the price of the Model 3 SR, not the US-only, morbidly expensive killing machine dubbed Cybertruck. This kind of abomination will never, ever be street legal in the EU. I'm not exaggerating, it really won't be, period. But Musk doesn't understand this, or even worse, doesn't even care.

It was easy to grow when the market wasn't saturated and there was no competition. Now it's a different story, and now they need to bring out attractive products, not just... anything.
 
Musk knows better than the underlings. What's "exciting" to them maybe just a drain on the company. I'd go with Musk every time over most anyone on any list "Time" fabricates.
 
This Tesla news is brutal! Especially the Supercharger team - that network is a huge selling point. Hope they can keep it running smoothly. And what about new models? Guess we'll have to wait and see what Musk has planned. Definitely need Tesla to get their finances in order, but this feels like a big gamble.
 
They need to start by laying off the owner .... that would be a GREAT start!

He's isn't the owner, though. He once boasted he could take it private, sure, but like most things he says that was bullshit and only earned him a SEC-mandated gag order.

Otherwise, I agree with you. This could all be solved much more easily by just firing one guy instead of 14000. Added bonus is a bunch of people would suddenly consider themselves potential future Tesla owners.
 
Not understanding this clearly indicates that Musk has absolutely no idea about the markets outside the US.
It's fun to live in a chocolate-covered fantasy land, eh?

June 1, 2023: "....For the first time ever, an all-electric vehicle — specifically the Tesla Model Y — is now the world’s bestselling car ... The Tesla Model Y outsold the Toyota Corolla in Q1, despite being almost double the price...."

Excluding China's BYD -- massively subsidized by the PRC -- Tesla is still the world's largest EV maker. Sales have dipped in 2024 as some of the hype has worn off EVs. Tesla's sales have actually been impacted considerably less than most EV makers.
 
Throwing away so much of knowledge and expertise? Giving trained teams to competition? Great. Bmw and audi already makes better evs, so they and other companies can now quickly close some of knowledge gaps if any exists.
 
FULL 100% EV's are DEAD!
Too expensive, "range" problems/charging.

Now, the HYBRID market could get a boost. Battery, but still has an ICE when needed.
 
This Tesla news is brutal! Especially the Supercharger team - that network is a huge selling point. Hope they can keep it running smoothly. And what about new models? Guess we'll have to wait and see what Musk has planned. Definitely need Tesla to get their finances in order, but this feels like a big gamble.
Maybe Rebecca and team can start their own company???
 
Shutting down the Supercharger team just as wide adoption of the NACS charging standard is about to happen in the US is insane. Demand for Superchargers is going to increase rapidly, and they won't have the chargers to meet it. The only way this makes sense is if Musk is about to announce some sort of major financial move like separation of the manufacturing and charging portions of Tesla and perhaps a sale of one or both of them.
 
It’s a great time for this Team to be picked up by one of the big OEMs with lots of skin in the EV game like VAG.
Same for their new vehicle team.

The European OEMs should be thrilled by the news.
 
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