Tesla layoffs: Shares dropping since CEO Elon Musk fired around 500 people in Tesla Supercharger team

Tesla's shares took a big hit this week, dropping by almost 6% after news came out that CEO Elon Musk was going to cut more jobs at Tesla. This would affect around 500 people who work in the Supercharger team. The stock ended the day at $183.28, which is a decrease of around 26% for the year.

According to reports from The Information, Musk sent an email to Tesla managers during the night. In the email, he announced that some important executives, like Rebecca Tinucci and Daniel Ho, were leaving the company. Musk was also unhappy that the company hadn't reduced its staff as quickly as he wanted.

By cutting these jobs, Tesla is slowing down its plans to expand its Supercharger network in the US. This decision came after Tesla made deals with Ford, GM, and other companies to use Tesla's charging stations.

These job cuts are part of Tesla's efforts to save money. In the first three months of this year, Tesla's revenue dropped by 9%, and profits halved. To boost sales, Tesla has been offering discounts and incentives.

The layoffs started in January and are continuing this month. Some employees who thought they were safe received notices that they were losing their jobs.

Tesla didn't warn investors about scaling back its charging infrastructure plans. It also didn't tell some of its charging partners, including small businesses that install and maintain Tesla charging stations.

Musk reassured everyone that Tesla still plans to expand its Supercharger network, but at a slower pace. The company wants to focus more on maintaining existing stations.

Tesla makes money from environmental credits and charging fees. It operates about one-third of all public electric vehicle charging stations in the US. While Musk talks about AI and self-driving technology, Tesla's main goal, as stated in its annual report, is to promote sustainable energy.

Meanwhile, Musk had to cancel his scheduled visit to India last month, where he was supposed to meet with Prime Minister Narendra Modi. Musk's visit was reportedly to announce Tesla's entry into India. "Unfortunately, I have important Tesla commitments that have forced me to postpone my visit to India, but I am eagerly anticipating visiting later this year," Musk wrote on X. Additionally, Reuters reported that a key Tesla executive involved in the company's India plans left this month.