In a surprising move, Elon Musk has reportedly eliminated almost the entire Supercharger team at Tesla, dealing a blow to President Joe Biden's electric vehicle (EV) agenda. This decision has the potential to compromise partnerships with other automakers looking to utilize Tesla's chargers and could undermine Biden's efforts to promote EV adoption during his reelection campaign.

While Musk has not publicly confirmed the rationale behind this decision, he has previously mentioned that the company will slow down the expansion of its charging network. This move could have significant consequences, as tax credits aimed at fostering domestic EV and battery manufacturing were key elements of Biden's climate bill, the Inflation Reduction Act. Additionally, $7.5 billion is being allocated by his administration toward EV chargers through programs established by the Bipartisan Infrastructure Law.

President Biden himself praised Tesla's commitment to opening their charging network to all drivers, calling it a "big deal" that would make a substantial difference in terms of expanding EV infrastructure. However, Musk's recent actions raise doubts about whether the Biden administration will be able to achieve its goal of building a nationwide network of half a million EV chargers.

The decision to lay off the roughly 500-person Supercharger team raises questions about the future of Tesla's charging business, as well as whether other automakers, including General Motors Co., Ford Motor Co., and Rivian Automotive Inc., will have access to Tesla's charging plugs. Their customers had only recently started to enjoy wider access to these chargers in the last few months.

According to BloombergNEF, Tesla delivered 8% of the global demand for public charging electricity in 2022. Before Musk's surprise move, projections indicated that Tesla's annual profit from Supercharging could reach around $740 million by 2030. However, achieving this level of earnings now seems unlikely, as estimates from BloombergNEF assumed an accelerated pace of charging installations throughout the decade.

Rebecca Tinucci, Tesla's senior director of EV charging and one of its highest-ranking female executives, was among the personnel laid off. Tinucci played a significant role in establishing partnerships with other companies in the EV market. Tesla's charging hardware was noted for its low deployment costs, with prices often being 20% to 70% cheaper than alternatives.

Musk has stated his intention to focus on better utilizing the existing network of charging stations that Tesla has already built, prioritizing 100% uptime and expanding at current locations. The CEO reassured users on his social media platform, X, that new charging sites under construction will be completed and additional Superchargers will be added to fill any existing gaps in the network.

The impact of Elon Musk's decision to cut the Tesla Supercharger team remains to be seen. It raises concerns about the company's commitment to collaborating with other automakers in advancing the EV revolution and creates uncertainty regarding the future of EV infrastructure development under the Biden administration.