Inside Tesla's Pay Raise: Factory Workers See Hourly Wages Surge

Earlier in January, Tesla Inc TSLA announced a significant pay raise for its factory workers across the U.S.

According to internal documents obtained by Business Insider, the pay rates for Tesla factory workers now range from $22 to $39 per hour, reflecting the company's adjustment to the cost of living in different regions.

The pay structure is divided into three tiers, correlating with the geographical cost of living, with workers at Tesla's Austin, Texas, and Sparks, Nevada, locations on the lower end, and those in Fremont and Palo Alto, California, on the higher end.

According to Business Insider, this adjustment comes as the state-mandated minimum wage in California is $16 an hour, compared to Nevada's $10.25 and Texas's $7.25, the publication reported.

Tesla categorizes its factory workers into seven levels, with compensation varying accordingly. For instance, Level 1 workers at the Fremont factory now earn $25.25 an hour, while Level 7 workers make $35.50 an hour.

Also Read: Tesla Employees Share Harrowing Tales Of Working For Elon Musk: 'Elon's Coming Out Of A Room, Looking Dead At You, And Firing You'

The new pay rates are a significant leap from the national average of $28 an hour for auto workers, as the U.S. Bureau of Labor Statistics reported last year.

Moreover, Tesla's initiative to adjust pay amidst growing momentum for unionization within the industry is highlighted by the United Auto Workers' recent contract negotiations, which promise to elevate the highest-paid autoworkers' wages to over $40 an hour by 2027.

Meanwhile, Elon Musk's electric car company, facing unionization pressures, has also introduced a performance-based bonus system named Cyber Wallet, rewarding employees biannually based on individual and company performance.

This system converts bonuses into paid time off, cash rewards, or stock options, further incentivizing employee performance and retention.

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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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