Tesla Reinstates Laid-Off Supercharging Team Workers: Elon Musk Reversal Sparks Industry Buzz
Tesla Reinstates Some Laid-Off Workers from Supercharging Team
Tesla, under the leadership of Elon Musk, appears to have overestimated the extent of cost-cutting measures needed.
After laying off tens of thousands of employees this year, the company is now rehiring some of the 500 workers from its Supercharger team who were previously let go, as reported by Autoblog/Bloomberg.
Max de Zegher, previously the director of charging for North America, has returned to his position. This comes after the unexpected dismissal of Rebecca Tinucci, the senior director, and most of the charging team by Musk last month.
The sudden disbandment of the charging team by Musk sent shockwaves through the electric vehicle industry. Tesla’s Superchargers are widely regarded as one of the company's most strategic assets.
Since launching its first Superchargers in September 2012, Tesla has grown its network to include over 6,200 stations and 57,000 connectors worldwide. The exact number of rehired workers is still unknown, with neither Musk nor de Zegher providing any comments.
Over the past year, Tesla has successfully convinced competitors to adopt its charging plugs as a standard and has established partnerships with major global manufacturers to allow access to its charging network.
Musk pledged last week to invest more than $500 million this year to expand Tesla's charging network. This commitment came after he had previously suggested a slowdown in the addition of new chargers, focusing instead on the maintenance and efficiency of existing sites.
On May 10, the @TeslaCharging account on X — a social media platform owned by Musk — posted a message thanking charging site hosts and suppliers for their patience during the company’s restructuring. De Zegher reposted this message, echoing the sentiment.
As noted by Bloomberg, this is not the first time Musk has "overdone it" with layoffs. In 2019, he reversed a decision to close most of Tesla's retail stores and move sales online after facing resistance from landlords, subsequently raising vehicle prices. A similar reversal occurred at Twitter in late 2022 when, after laying off about half of the workforce, Musk asked dozens of employees to return.
In April, Tesla announced it was cutting over 10% of its 140,000-strong global workforce to prepare for a new phase of growth, according to CNBC.
Little information was provided on the layoffs, but in a company memo, Musk stated the move was part of a strategic shift towards robotaxi development, stepping away from plans for a more affordable electric vehicle.
What are your thoughts on this unexpected turn of events? Do you think Tesla's decision to rehire some of its laid-off workers is a positive or negative move? Don't forget to share this article with your friends and sign up for the Daily Briefing, delivered to your inbox every day at 6pm.