Tesla, the pioneer in electric mobility, is facing significant upheaval in its charging infrastructure division, leading to widespread uncertainty in the industry. After the company announced it would lay off most of the employees responsible for building the largest and most successful electric vehicle charging network in the USA, there is great confusion about the future of Tesla's charging business.

The layoffs, which ranged from sales employees to those overseeing the construction of charging stations, have halted construction work at a dozen Supercharger locations in Texas. In New York, Tesla pulled out of negotiations with landowners over new charging stations.

These upheavals occur at a time when the EV industry is struggling with slow sales figures and a bumpy rollout of a nationwide highway charging network. Tesla, which has so far been seen as a shining example in the chaotic world of charging infrastructure, could slow down the entire US market growth for electric vehicles by pulling out.

In an internal email sent late on Monday, CEO Elon Musk announced that the entire Supercharger team will be laid off and senior director Rebecca Tinucci will be leaving the company. This was first reported by The Information.

The Drastic Cuts Follow Tesla's Announcement Last Week That Profits in the First Quarter Have Fallen to Their Lowest Level Since 2021, and the Company Plans to Lay Off More Than 10% of Its Global Workforce. These Measures Reflect the Cooling Demand for Electric Vehicles and the Company's Financial Challenges.

The announcement of layoffs and withdrawal from the expansion of the charging infrastructure has already led to a nearly 2-percent decline in Tesla shares on Wednesday morning, after they had already fallen by 5.6% on Tuesday.

Tesla's Charging Network, Now Open to Other Car Brands, Was a Crucial Factor in the Brand's Attractiveness. The Slowing of Expansion Could Affect Not Just Tesla Itself, But the Entire Electric Vehicle Market. However, Other Companies Building Charging Infrastructures Might Seize the Opportunity to Fill the Emerging Gap.

This move by Tesla could lead to a healthier competitive landscape in the long term by enabling reliability improvements at the stations, thus triggering short-term market turbulence, but ensuring more competition in the long run, said Carleen Cullen, co-founder and CEO of Cool the Earth.