Elon Musk announces that Tesla is planning to invest a significant amount of money in the development of new EV chargers.

Shares of Tesla Inc. appeared to be on the decline once more on Friday, as Chief Executive Elon Musk appeared to challenge recent reports about the potential closure of the company’s Supercharger EV charging business unit.

On Musk’s social-media platform X, previously referred to as Twitter, he announced that Tesla plans to invest “well over $500 million” to expand its Supercharger network. This expansion will result in the creation of “thousands” of new EV chargers.

Recent reports have emerged stating that Tesla has laid off approximately 500 employees and closed down the Supercharger business.

After the news of Supercharger layoffs emerged, Musk took to X to reassure that Tesla’s plans to expand the Supercharger network were still intact. However, he mentioned that the growth would now happen at a slower pace for new locations, with a greater emphasis on expanding existing ones.

Tesla’s stock experienced a slight increase of 0.6% shortly after the opening bell. It continued to rise, reaching over 1% in premarket trading, but later changed direction and dropped by 2% during morning trading.

The stock has experienced a significant decline of 8.8% over the past four sessions, raising concerns about the potential negative effects of recent layoffs on the company’s employees and operations.

There was a recent report from Bloomberg that mentioned the Biden administration’s plans to impose tariffs on electric vehicles from China, which had an impact on the stock. The Wall Street Journal has released a report stating that there is a possibility of a significant increase in the tariff on electric vehicle imports from China. The potential increase could be as high as quadrupling the current tariff of 25% to reach 100%.

Tesla’s revenue from China during the first quarter amounted to $4.59 billion, accounting for 21.6% of its total revenue of $21.30 billion.

These reports emerge as the EV sector and Tesla’s stock approach a critical turning point, with rising competition coinciding with a slowdown in demand.

Tesla’s stock has experienced a significant decline this year, with a decrease of 32.2%. This decline has resulted in the company losing approximately $254 billion in market value, according to FactSet data. However, after closing at a 15-month low of $142.05 on April 22, the stock has experienced a significant increase of 18.7%. This surge in value comes as investors express their enthusiasm for the company’s first-quarter earnings report, despite it falling short of profit and revenue expectations.