Gamingdeputy reported on May 5 that earlier this week, Tesla suddenly fired its entire Supercharging team, causing the Supercharging station installation plan to be immediately shelved. A later leaked email from Tesla to suppliers showed the confusion surrounding the layoffs decision-making process.
When Tesla announced the layoffs on Monday night, it did not disclose its impact on the company's plans. On Tuesday, Tesla CEO Elon Musk said, “Tesla still plans to expand the Supercharging network, but the speed of building new sites will slow down and focus more on the 100% normal operation and expansion of existing sites.” Gamingdeputy noted that according to data from Tesla’s official website, the current normal operation rate of super charging stations is 99.95%.
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However, it is reported that some Supercharger station projects have been cancelled, including projects across Australia, and even some sites that have signed long-term leases and have been approved for construction will also be abandoned.
Tesla also sent an email to all suppliers, which has been leaked. Here is the content of the email (with contact information redacted):
Dear interested parties:
As you're no doubt aware, the Supercharger division has undergone a shakeup of late and is currently undergoing a sudden and radical reorganization. If you have already received this email, please ignore it as we are trying to get in touch with our suppliers and contractors. In the process, we will establish new leadership, prioritize projects and streamline the payment process. As we are in a transitional phase, we ask for your patience as we wait for our response.
I understand that this period of change can be challenging and it is not easy to be patient when payments are expected, but I sincerely appreciate your understanding and support during this transition. At this time, please suspend any newly awarded construction projects and planned pre-construction site investigations. If you are currently working on an active Supercharger construction site, please proceed. For further questions, comments and concerns, please contact (email address redacted). Additionally, please put a hold on any new orders for materials. For further questions, comments and concerns, please contact (email address redacted). If you are awaiting a late payment, please contact (email address redacted) for the latest status. Thank you for your cooperation and patience.
The email is notable primarily because it exposes the lack of structure and consideration in Tesla’s decision-making process to fire an entire team.
First, Tesla said it was “trying” to contact its suppliers and may have sent multiple emails to some of them. This suggests Tesla does not have established contact details with all suppliers – they may not have a complete contact list, or previous methods (including contacts within Tesla) no longer work as these contacts may have Got fired.
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Second, the email states that this “realignment” (an odd reference to firing an entire department) resulted in the process of establishing new leadership roles. This is typically something companies will consider before replacing a leader, and ensure that experienced current employees are ready to take over the departing leader's shoes, perhaps with a period of mentoring before the departing leader retires.
Even in the event of a sudden layoff, it is reasonable to promote the second-in-command in the previous department to the vacant position. This is the advantage of having a strong talent pool, and Tesla has touted this before.
Third, Tesla goes on to mention that suppliers “expect payment,” suggesting that Tesla may default on payments in the short term. Musk has refused to pay bills before.
Finally, Tesla requires suppliers to continue working on ongoing projects, but suspends the start of new projects and pre-construction site inspections. This can feel unclear because site approvals, permits and construction involve many parallel steps, making it difficult to draw a clear line as to which sites should and should not continue construction. Site contacts within Tesla were able to contact each site and let them know whether to continue construction if they were still working at Tesla, but it appears they no longer are.
Other charger providers have also responded to Tesla's disruption of its Supercharger program, with at least one saying they are ready to seize “premium sites” that Tesla has abandoned, particularly at the company's home base in New York City.