Musk says Tesla Supercharger is expanding despite layoffs

Tesla (TSLA) CEO Elon Musk backpedaled on his recent move to shrink the company's Supercharger team, posting on X that "Tesla will spend well over $500M expanding our Supercharger network to create thousands of NEW chargers this year.”

This move comes after the company laid off nearly the entire Supercharger organization, with Musk posting on X that the network will grow at “a slower pace” for new locations.

Yahoo Finance reporter Pras Subramanian tells Josh Lipton and Julie Hyman that Musk is "trying to fix the situation or chaos that he created in the first place by basically nearly laying off everyone in that Supercharger team."

Many legacy automakers signed up to participate in Tesla's Supercharger network, which Subramanian explains created "a big problem that [Musk] is trying to address right now."

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This post was written by Melanie Riehl

Video transcript

Um I wanna shift gears here though while we have you because Elon Musk is changing his tune on a supercharger network.

Halt.

I, you know, I don't know who's gonna do the work at Tesla anymore considering how many people they laid off in super chargers.

But tell us what we know.

Yeah, I'm sort of like a backtrack here for, for, for Elon Musk kind of uh trying to fix the situation or, or chaos that he created in the first place by basically nearly uh laying off everyone in that superchargers team.

You know, this is a product that many people thought sort of separated Tesla from the rest of the pack.

Also, we know many legacy automakers signed up with Tesla to be a part of that network for their evs so big deal here.

But basically must saying today earlier this earlier today saying just to reiterate point in in a tweet, Tesla will spend over 500 million expanding our supercharger network to create thousands of new chargers this year.

That's just on new sites and expansions, not counting operations costs, which are much higher.

So he's sort of saying nothing to see here.

We're, we're gonna keep on investing.

Don't, don't think it, don't look at those reports that saying that I laid out everyone including the woman uh Rebecca Tucci who actually uh negotiated the deals with Honda and GM and Ford and others to kind of join the network.

So sort of a backtrack here.

I think there's a lot of partners, not just automakers but also their suppliers who make the superchargers who develop sites and real estate uh projects who are concerned that they were trying to email people at Tesla, their emails are getting bounced back.

They have no idea who to talk to, who get paid, things like that.

So it's a big problem that he's trying to address right now.