EV Power Pulse Issue #21

Current EVents

EV Industry Updates

Tesla lays off their entire Supercharger team
Tesla's recent decision to lay off its Supercharging team has many in the EV industry confused and concerned. Questions remain regarding the rationale behind the surprise decision and, more importantly, what this means for the EV charging industry. While Tesla’s decision has created challenges in the near term, I believe this decision opens new opportunities for established players and emerging disruptors in the charging infrastructure arena.

Before addressing the road ahead, it’s important to understand the factors that likely contributed to Tesla’s decision.

Musk's Vision and Shareholder Dynamics

Elon Musk's decision to terminate Tesla's entire Supercharger team appears to be a strategic move to refocus the company on long-term objectives and increase shareholder confidence. The decision aligns with Musk's recent comments that Tesla is an AI and robotics company singularly focused on achieving full autonomy, rather than an electric vehicle manufacturer.

During Tesla's Q1 2024 earnings call on April 23, Musk emphasized the company's self-driving and AI capabilities and ambitions, stating that investors shouldn’t be involved with Tesla if they do not believe in its ability to solve autonomy. Musk’s focus on AI and autonomy was juxtaposed with Tesla’s disappointing financial results. Tesla reported an 8.5% year-over-year decline in deliveries – its first quarterly delivery decline since 2020.

The abrupt layoffs of Tesla's 500-person Supercharger team were announced on April 29, just 6 days after the earnings call. While the Supercharger network expansion was mentioned as a highlight in the Q1 shareholder deck, Musk's decision to eliminate the entire team responsible for this key competitive advantage demonstrates the extreme measures Tesla is willing to take to realign priorities and resources around Musk’s AI ambitions. 

It’s also important to remember that Tesla's shareholders are currently reevaluating Musk's compensation amidst fluctuating stock performance. The move to lay off the Supercharger team reflects Musk's willingness to make difficult choices that advance the company's long-term vision of achieving full autonomy. This decision may also be tied to Musk’s desire to increase the probability of reinstating and ratifying his 2018 compensation package, valued at over $40B in stock options.

Navigating the Road Ahead

While Tesla's decision to lay off its entire Supercharger team has created near-term challenges and uncertainty, I remain optimistic about the long-term prospects for the US's charging infrastructure. This moment presents opportunities for established players and emerging disruptors to step up and drive the industry's evolution.

The transition to widespread EV adoption hinges on the availability of reliable, convenient charging solutions. Tesla's Supercharger network was an important early catalyst, but its long-term dominance was never promised. The Biden Administration has committed $7.5B to deploying 500,000 new chargers across the US by 2030 through the National Electric Vehicle Infrastructure (NEVI) program. This federal investment, coupled with growing private sector interest, sets the stage for a more open and interoperable charging ecosystem.

The expertise of former Tesla employees who oversaw the Supercharger buildout will be invaluable as other networks scale up. Innovative business models, new technologies, and new startup companies (possibly led by these former Tesla employees) will soon emerge to disrupt the traditional charging paradigm further.

The road ahead will require collaboration between the public and private sectors, utilities, automakers, and charging providers. But the destination is clear - a future where EV drivers enjoy the convenience and freedom to charge anywhere, without being tethered to a single proprietary network. While Tesla's decision creates near-term speed bumps, it also catalyzes the transition towards a more open, robust national charging infrastructure to power the electric mobility revolution.

–Steve

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Power and Policy

Biden Administration Moves to Speed Up Permits for Clean Energy
The Biden administration's recent move to fast-track permits for clean energy projects, including EV charging stations, arrives at a critical moment for the industry. These modifications, part of broader reforms to the National Environmental Policy Act (NEPA), aim to simplify the approval process for vital infrastructure developments.

Under these updated regulations, federal agencies are instructed to give precedence to projects offering strong environmental benefits, such as EV charging stations powered by renewable energy sources like wind and solar. These changes carry significant implications for the EV charging sector. 

With a more transparent and accelerated permitting process, companies involved in deploying charging infrastructure can expect smoother paths for project approvals, potentially accelerating the expansion of charging networks nationwide. 

The streamlined permitting processes for EV charging infrastructure underscores the Administration's commitment to overcoming barriers and advancing progress toward a more sustainable transportation system.

By prioritizing projects with substantial environmental benefits and simplifying approval processes, the Biden Administration aims to further facilitate the widespread adoption of electric vehicles and contribute to a cleaner, more sustainable future.

–Rob 

Emerging EV Tech

10-minute EV charging record set by Polestar and StoreDot
Polestar and StoreDot have set records by charging an EV battery from 10% to 80% in just 10 minutes. This breakthrough, fueled by StoreDot's ultra-fast-charging (XFC) battery technology integrated into Polestar's latest prototype, tackles a key concern for EV owners: charging time and range anxiety.

With StoreDot's XFC technology, drivers can now add 200 miles (320 km) of range in under 10 minutes, effectively eliminating the obstacles of range anxiety and charging concerns that have hindered EV adoption.

The successful trial involved charging a 77kWh battery using StoreDot's high-energy silicon-dominant battery cells installed in a Polestar 5 prototype. They maintained a consistent charge rate of over 310kW, with peaks surpassing 370kW.

What's particularly promising is the seamless integration of StoreDot's technology into existing car models. This means that ultra-fast charging is not limited to proprietary chargers but can be achieved using readily available charging infrastructure, further driving the widespread adoption of EVs.

Looking ahead, StoreDot aims for even faster charging times. By the end of this year, they aim to achieve a 100-mile (160 km) charging capacity in just 5 minutes. And their ambitions don't stop there; they hope to reduce charging time to 4 minutes by 2026 and just 3 minutes by 2028.

This achievement marks a significant advancement in EV charging technology, promising a future where EV ownership is as convenient and seamless as traditional gas-powered vehicles. 

–Steve and Rob

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Until next time, stay charged!
- Steve and Rob