Elon Musk’s Recent Decision Hinders Biden’s EV Agenda

Tesla CEO Elon Musk decided on May 1 to disband a large part of a key team in its electric vehicle (EV) charger division, hindering President Joe Biden’s EV agenda.

Musk’s decision undercuts a deal Tesla struck with the White House last year to open the company’s vehicle chargers to other automakers in exchange for accessing federal dollars.

“It feels like the rug just got pulled out from under a lot of the industry alignment that has been built in the last twelve months,” Matt Teske, CEO of the EV-charging software platform Chargeway, said.

Elon Musk’s move to disband Tesla EV charging team blindsides car industry: ‘Sharp kick in the pants’ https://t.co/Og0V8QA34O pic.twitter.com/mfPjlwNIYm

— New York Post (@nypost) May 2, 2024

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According to Politico, Tesla won almost thirteen percent of all EV charging awards from Biden’s 2021 bipartisan infrastructure law. This earned the company more than $17 million in infrastructure grants.

Musk’s sudden decision to disband employees in Tesla’s EV charging business comes as a surprise to automakers preparing to equip new EVs for customers.

As a result of this decision, General Motors, Ford and other automakers, which struck deals last year to give customers access to the networks, have refused to change their plans.

Last year, Biden supported Tesla’s decision to open its network to rival EV manufacturers. This decision allowed Tesla to benefit from generous government subsidies for years.

Elon Musk has upended a deal the White House saluted early last year to open Tesla’s chargers to other automakers, dealing a blow to President Joe Biden’s EV agenda. https://t.co/UzWkvc9z4B

— Bloomberg (@business) May 1, 2024

Tesla said it made the decision because it plans to slow its supercharger development.

However, in a post on X, Musk claims Tesla will continue to build Superchargers. He also said he wants to utilize the network Tesla has already built.

“Tesla still plans to grow the Supercharger network, just at a slower pace for new locations and more focus on 100% uptime and expansion of existing locations,” Musk wrote.

Tesla still plans to grow the Supercharger network, just at a slower pace for new locations and more focus on 100% uptime and expansion of existing locations

— Elon Musk (@elonmusk) April 30, 2024

The Supercharger is considered one of the best chargers available because it can recharge EVs quickly and reliably.

However, the disbandment of Tesla’s supercharger team sparks various reactions to whether Biden’s administration will reach its goal of building a nationwide network of half a million EV chargers.

Among the workers dismissed was Rebecca Tinucci, Tesla’s senior director of EV charging and Daniel Ho, head of new vehicles program.