Elon Musk recently announced plans to expand Tesla Inc.’s Supercharger network after a controversial move to fire almost all employees running the business. Musk stated on X, the social media platform he owns, that Tesla will be investing “well over” $500 million in growing its network this year. This news comes just days after Musk mentioned that Tesla would be focusing on improving uptime and existing locations rather than expanding at a rapid pace.
Following the termination of the senior director and most employees of Tesla’s charging business, it remains unclear how the network will operate moving forward. Several automakers who had agreements to access Tesla’s Superchargers have reported difficulty in reaching the company’s representatives. This sudden change in strategy has caused concern among customers and industry insiders alike.
Tesla’s stock fell by as much as 2.4% following Musk’s announcement, adding to the more than 30% decline the company has seen this year. While Tesla regularly updates the public on the number of Supercharger stations and connectors, information about the network’s expenses has been less transparent. Musk did not provide details on how the $500 million investment compares to previous spending.
In light of these developments, other companies in the electric vehicle charging sector, such as BP Plc and Blink Charging Co., are positioning themselves to take advantage of Tesla’s changing strategy. The head of BP’s EV charging business in the US expressed interest in working with real estate partners that Tesla may have abandoned, while Blink Charging Co. sees an opportunity to expand its market share.
This recent shift in strategy by Musk reflects previous instances where Tesla has made sudden changes to its business model, only to reverse course shortly after. It remains to be seen how Tesla’s Supercharger network will evolve in the coming months, especially in light of these latest developments.