Tesla Faces Senate Heat - 33 Senators Reportedly Call On Elon Musk, Other Automakers On Demands For Neutrality In Union Organizing

Zinger Key Points
  • Senators demand Tesla and 12 automakers stay neutral in UAW unionization efforts amid concerns of illegal tactics by management.
  • A group of 33 senators, including Democrats, urge Tesla to pledge neutrality in UAW organizing activities, citing NLRB findings.

Tesla, Inc. TSLA, alongside 12 other automakers, is reportedly urged by a group of 33 senators to adopt a neutral stance in the ongoing United Auto Workers (UAW) unionization efforts at U.S. auto plants.

The letter, attested by Democratic senators including Gary Peters, Ron Wyden, Dick Durbin, Patty Murray, Alex Padilla, Sherrod Brown, Debbie Stabenow, and more, was addressed to Tesla CEO Elon Musk and high-ranking executives at other auto firms, Reuters reported.

"We believe a neutrality agreement is the bare minimum standard manufacturers should meet in respecting workers' rights, especially as companies receive and benefit from federal funds related to the electric vehicle transition," the letter first reported by Reuters said.

The other companies notified are Toyota Motor Corporation TMVolkswagen AG VWAGY, and Honda Motor Company, Ltd. HMC, among others. 

The letter expressed worries about alleged unlawful actions by management at various automakers to obstruct unionization, Reuters added. 

The letter referenced National Labor Relations Board (NLRB) conclusions pointing to Tesla's use of "various illegal tactics to impede organizing efforts, including online harassment, employee interrogations, and retaliatory terminations," the Reuters report read.

Also See: Tesla Vs. BYD: Musk Labels American EV Giant An 'AI/Robotics Company' After Chinese Rival Steals Global Sales Crown

Tesla has been in the headlines for initiating a recall of 1.62 million vehicles, encompassing its S, X, 3, and Y models, in China today.

Following two recalls in the U.S. last December, Tesla is now conducting recalls in its second-largest market, China.

On Thursday, the EV giant changed the range estimate for select variants of Model S, X, and Y. 

Tesla's website now shows a range of 242-260 miles for the base model of the Model Y, 292-310 miles for the Long Range variant, and 285 miles for the Performance version. This is a nearly 20-mile drop in range on the two higher-end variants of the company's most popular vehicle.

Last December, Tesla was in the headlines for recalling over 2 million vehicles to address issues with its Autopilot system amid concerns that the technology being used for the fix might be ineffective.

Read Next: Ford F-150 Lightning Prices Reportedly Tweaked: How Do They Stack Up Against Tesla's Cybertruck?

Price Action: TSLA shares are trading higher by 0.33% to $238.71 on the last check Friday.

Photo via Company

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