The oil giant is balancing growth goals and flagging EV demand
Though many people still believe that electric vehicles remain a big part of the the future of transportation worldwide, people aren’t as excited about them as expected in the near term. And because of that, Reuters reports that the oil giant BP $BP is trimming its EV charging workforce by as much as 10% as demand in the sector grows uncertain amid a slowdown in customer takeup of the electric vehicles themselves.
“Our EV ambitions have not changed,” BP told the wire service, adding that the changes at its BP Pulse charging division are “a step towards ensuring that we can execute our goals with even greater precision and effectiveness.”
The news comes as Tesla $TSLA prepares to lay off 10% of its global workforce, Ford $F slashes prices for its F-150 Lightning and Mustang Mach-E models, and popular EV manufacturer Rivian $RIVN sees its stock hitting an all-time low.
On an earnings call in February, BP CEO Murray Auchincloss said that the company thinks of EV charging as part of a vertically integrated “value chain” similar to gas stations supplied by refined BP oil and consumer natural gas supplied by BP fields.
“Over the past four years, we’ve been accelerating our efforts to create a third value chain, lower carbon power and hydrogen,” he said. “For example, using solar wind to create lower carbon hydrogen to provide to our plants and customers, and using those electrons to service the growing electricity demand through our EV charging business. Why? Because we can deliver higher margins with lower emissions.”
BP has more than 29,000 charge points worldwide, and expects that number to hit 40,000 by 2025. In Germany and China, the company told investors, its EV charging stations are profitable, and it expects its EV charging operations as a whole to become profitable by 2025.
Join 500,000+ readers who start their day with Quartz.
By subscribing, you agree to our Terms of Service and Privacy Policy.
