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Elon Musk slashed the majority of Tesla's supercharger staff this week, throwing a major wrench into President Joe Biden's plan to have only EVs on the road by 2035.
The Supercharger is an EV charging bank that lets drivers use the Tesla app to find available stall locations to plug in the vehicle and sends a notification when it is fully charged.
These Superchargers were a cornerstone of Biden's plan to reduce carbon emissions by making EVs more practical. The most common reason cited by Americans for not going electric is 'range anxiety', which is the fear of a lack of charging stations and that the vehicle's battery charge won't last long enough to complete a trip.
While Musk has already installed 2,234 stations in the US, he planned to have tens of thousands by 2030 to boost the president's EV initiative.
EV experts and officials told DailyMail.com that Tesla backing out of its agreements could simply open a doorway for other companies to step in - but admitted the 2035 timeline was unlikely.
Tesla has more than 50,000 Supercharger stations and had signed leases to open more locations when Elon Musk laid off the entire Supercharger team
Elon Musk claims Tesla will still be able to deliver Supercharging stations but said it will just be done at a slower pace
Tesla halted construction at Supercharger sites across the US including a dozen in Texas and paused ongoing negotiations with property owners in New York.
The company was selected as a charging provider for at least one federally-funded EV charging infrastructure in seven states including Utah, Texas and Rhode Island that could now go unfulfilled in the wake of the layoffs.
Musk removed Tesla's entire Supercharging team of about 500 people, and although he has not confirmed what prompted the cuts, it follows a series of other layoffs as part of cost-cutting measures.
The layoffs were unusual because Tesla received $17 million in infrastructure grants as part of the Biden administration's Bipartisan Infrastructure Law that aimed to have 500,000 Supercharger stations in place by 2030.
In February, the White House said Tesla would make at least 7,500 open chargers for all EVs by the end of 2024, including at least 3,500 new and existing 250 kilowatt Superchargers placed on highway corridors and at hotels and restaurants across the country.
It is now unlikely Tesla will be able to meet those expectations despite Musk's claims that Tesla still intends to grow its Supercharger network, 'just at a slower pace for new locations and more focus on 100% uptime and expansion of existing locations.'
'There is a lot of speculation as to why the majority of the Supercharger team was let go, and only Musk can explain why,' Matt Teske, CEO of the EV-charging software platform Chargeway told DailyMail.com, adding that 'the timing of this decision is primarily what has baffled many in the EV industry.
Tesla's major setback reportedly won't hurt President Joe Biden's ambitious goal of having 500,000 charging stations in urban and rural areas by 2030
Tesla received $17 million in infrastructure grants under Biden's 2021 Bipartisan Infrastructure Bill to install 3,500 charging stations in the US
In the wake of Tesla's layoffs, the Biden-Harris administration still remains confident that is will still be able to offer 'a convenient, reliable, and equitable national EV charging network,' to meet the public's needs, a Joint Office of Energy and Transportation spokesperson said.
The void has left a bidding war among companies to provide the charging stations that Tesla had promised to build for automakers.
Kia, Honda, and General Motors are among the companies that signed agreements with Tesla to adopt its charging connector and gain access to all of the company's Supercharger stations.
The joint office of energy transportation spokesperson said Tesla's layoffs won't impact planned projects for EV charging stations.
'As a startup company Tesla approached automobile design and engineering by thinking differently,' Teske said.
The company was 'proactive' when it created EVs because it catered to a market that didn't exist, leaving existing car companies trying to adapt and 'change how they operate,' Teske said.
'To the Biden Administration’s credit they have worked to further incentivize automakers efforts for EV development and infrastructure deployment,' he continued.
'This not only ensures US automakers are innovating their products to compete both domestically and internationally, but also ensures job growth in electric vehicle technology.'
The NYC Taxi and Limousine Commission said it is continuing to push its Green Rides Initiative which labels which locations would benefit the most from EV stations.
'Providing our for-hire drivers with the charging infrastructure they need is critical to protecting their livelihoods and creating a greener, more sustainable city,' Taxi and Limousine Press Secretary Jason Kersten said.
'The Green Rides Initiative means that any provider doing business in NYC has a reliable, growing customer base, and one provider backing out of a lease is a great opportunity for another to snap it up, especially if that site is power-ready.'
In New York City, the rideshare company Revel, which brands itself on exclusively using Tesla vehicles, has already agreed to take over three of Tesla's Supercharging leases including locations at John F Kennedy International Airport, La Guardia Airport and a 20-plug station in the Bronx.
'While Tesla has been the leader on EVs and proven electrification can be profitable, they will need to compete for mainstream buyers,' said Teske.
'This decision by Musk provides an opportunity for other companies to step up and prove their prowess in the EV customer experience, which will only spur growth for EVs moving forward.'