It seems they looked at the market, saw their 6% return on SC's and saw a lot of competition that would be drive down that low margin and be installing their NACS ports going forward anyway. If they can back away to to let 3rd party developers/funds build the low margin stuff, it could be a wise use of capital.

However, this is the ChargePoint model having 3rd parties buy/build/own/operate the stations and although Tesla's DC/AC charger builds are better, they will be confronted with the same issues ChargePoint has where station uptime is much lower due under 3rd party ownership because Tesla does not directly own and monitor the stations and it's up to the owner to maintain. The owners are more lax and the ports experience more downtime, disrepair. Literally the opposite of increasing SC uptime that was Elon's justification tweet on this team layoff. Maybe they can find a solution to the problem (only selling to large orgs/projects like they do with Megapack) but the likely outcome is the network will grow slower with outside capital but the quality/uptime is lower than before. And non Tesla SC stations/networks will be integrated into the Tesla dash like everyone other OEM does.