Tesla CEO Elon Musk has eliminated the entire Supercharger division and laid off 10% of the workforce.

The company is facing increased competition from more affordable electric vehicle (EV) rivals.

Despite the cutbacks, Musk claims Tesla will continue to expand the Supercharger network at existing sites.

Industry observers express concern over the impact on EV infrastructure development and buyer confidence.

Tesla's Supercharger network, previously a major advantage, might lose its edge as regulators push for network sharing with other EVs.

The move follows Tesla's first revenue decline since 2021, investigations into Autopilot safety, and a Cybertruck recall.

California's push for more fast-charging stations, as announced by Governor Newsom, underscores the competitive pressure on Tesla.