Tesla Inc.'s stock plummeted by over 5% on September 16, 2024, as concerns mounted over the company's ability to maintain its competitive edge in the electric vehicle (EV) market. The decline was primarily driven by reports of a slowdown in the expansion of Tesla's Supercharger network, a key selling point for the automaker.
According to reports from The Wall Street Journal, Tesla's expansion of its Supercharger network, which provides fast charging stations for its EVs, has slowed significantly in recent months. This slowdown followed widespread layoffs in April 2024, which gutted the team responsible for installing new chargers and stations.
The data from EV analytics firm EVAdoption revealed that the number of new Supercharger ports opened between May and August 2024 fell by 28% compared to the same period in 2023. For the first eight months of 2024, the overall number of new ports was down 11% year-over-year.
While Tesla has been trying to rebuild the Supercharger team, including rehiring some previously laid-off employees, the slower expansion has raised concerns about the potential impact on the charging experience for EV customers. This is particularly relevant as Tesla has recently opened its charging network to other automakers like Ford Motor and Rivian Automotive, allowing non-Tesla EV owners to access the Superchargers.
Separately, analyst Dan Levy from Barclays maintained a "Hold" rating on Tesla stock, with a price target of $220. However, the analyst report did not provide specific details on the reasons behind this rating.
