Elon Musk dealt a major setback to electric vehicles with this unexpected decision

Elon Musk’s Tesla is the leader in the electric vehicle industry.

But the company is being forced to make painful decisions because of weak customer demand.

And Elon Musk dealt a major setback to electric vehicles with this unexpected decision.

Tesla made a cutback that will affect the entire electric vehicle industry

The bad news is piling up for the electric vehicle industry with no end in sight.

Major automakers like Ford, Mercedes-Benz, and General Motors announced that they were either cutting production of electric vehicles or scaling back future goals.

Tesla wasn’t spared from the pain after the company announced that its deliveries for the first quarter of the year dropped to the lowest level since the pandemic.

As a result, the company announced that it was cutting more than 6,000 jobs in April.

Tesla founder Elon Musk announced another round of layoffs that will reverberate across the entire electric vehicle industry.

The entire 500-person team working on superchargers was let go in a shocking move.

“We need to be absolutely hardcore about headcount and cost reduction,” Musk wrote in an internal email to Tesla employees.

Superchargers are the fast chargers for Tesla and increasingly other electric vehicles.

Tesla built and operated the largest network of fast chargers in the country.

“The network they built is bigger, faster, smarter, and more reliable than any other company’s — and has become the linchpin of the auto industry’s plan to persuade millions of Americans to buy EVs and turn the tide on climate change,” E&E News reported.

The federal government and other automakers have struggled to build public charging stations, which are essential to the mass adoption of electric vehicles.

President Joe Biden set a goal of having 500,000 public charging stations nationwide by 2030.

That goal was in jeopardy before Tesla’s announcement, and now it’s almost certainly doomed. 

His 2021 bipartisan infrastructure bill allocated $7.5 billion to build public charging stations, but less than 10 have been built nationally with that money.

Automakers worried about not being able to rely on Tesla for charging stations

Tesla is the only company in the world that’s proven it has the capability to build a network of public charging stations.

Last year, it built 56% of the fast charging stations in the country.

Tesla built more fast charging stations than every other company combined. 

Instead of trying to compete, Ford cut a deal with Tesla to allow its electric vehicles to be able to use Tesla’s superchargers.

Rivian and General Motors also announced that they were switching to Tesla’s charging infrastructure. 

And Tesla announced charging agreements with Stellantis, Volvo, Kia, Honda, Mercedes-Benz, and BMW.

“It feels like the rug just got pulled out from under a lot of the industry alignment that has been built in the last 12 months,” Chargeway CEO Matt Teske, a veteran of the electric vehicle industry, said. “And leaves us on shaky ground.”

Public charging stations are the key to any future that electric vehicles have in the United States, outside of being a novelty item for short trips.

Now the electric vehicle industry is reeling after Tesla decided to pull back.

*Renewed Right Official Polling*

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