So from a product management standpoint, the SC network is what is known as a competitive differentiator or a distinctive competency. Whether we want to realize it or not, MANY people bought Tesla's because of the SC network itself, not because they particularly love the vehicle itself. We fell into this bucket. I actually "like" the look of other BEVs better than Tesla vehicles, but when it came to ease of use and public charging infrastructure, at least last year, I would not have considered buying any other BEV for this reason alone.
Specific to the contract clauses and verbiage - it all depends on the clauses whether there are violations of terms and conditions. This is speculation on my part and hopefully legal reviewed these decisions prior to Musk announcing them, but we've seen a pattern in the past of Musk making personnel decisions without following proper legal protocols (WARN anyone?) for example, so I won't be surprised if there are downstream impacts to what occurred yesterday along this line.
My bigger picture concern is that, for people like me, who bought their Tesla with the SC network as a primary key differentiator, if this changes, then I'm more likely to consider other BEVs. I get that it's likely a commodity business now - the SC network - and therefore not attractive to continue to grow it out - but if Tesla cannibalizes future demand in the process - when the fact is that Musk clearly posted that these layoffs were due to falling sales volume and cost cutting resulting from lower demand - and then you go and eliminate an entire department that may turn off both existing early adopter Tesla owners who may not buy another Tesla, along with traditional buyers who already clearly indicate that the two biggest concerns are range anxiety and public charging network availability - why cut the one department that directly addresses the two biggest concerns prospective buyers have? The logic escapes me with this in mind.