As more EV automakers come online, Tesla has laid off workers. Tesla’s latest round of layoffs include its entire Supercharger team.

Tesla has been in employee cutting mode since the beginning of 2024 with plans to layoff 10% of its workforce.

We’re not giving up anything that is significant that I’m aware of.

Elon Musk

World’s Largest Charging Network

Tesla’s Supercharging network is its crown jewel. The network features 50,000 plugs worldwide, and has forced other automakers to adopt the J2 plug standard. Laying off the entire unit is puzzling, especially since Tesla’s executives have placed such an emphasis on it being one of the company’s biggest assets. GM, Ford, Toyota, Rivian, and Volvo have all struck deals with Tesla giving their vehicle owners access.

Tesla’s real issue is its lack of innovation and pipeline of new vehicles. That’s what’s really hurting sales. After years of being the number 1 EV mover and shaker, traditional car companies have caught up and delivering hot products for consumers.

Automakers usually tout futuristic offerings, and tease new vehicle models 2, 3 and 10 years out. Tesla has been riding the Model X and 3 series for the last several years with no new notable designs and improvements for the future. Their latest design, the Cybertruck, is either panned or promoted by nerds and not general consumers.

With Rivian and Lucid offering stylish and long range EV options, Tesla is no longer the hot EV on the block. Furthermore, every major car company has an EV or hybrid vehicle on existing fan-favorite platforms, or new ones.

These layoffs simply show that Tesla, Elon Musk, is also susceptible to the whims of the marketplace. The genius is waning. Simply cutting staff won’t cure Tesla’s woes. (It definitely hasn’t cured Twitter’s) They’ll have to come up with new and desirable products for a fickle marketplace.