Tesla has implemented a new pay structure for its employees at different locations based on the cost of living in each area. Workers in Austin, Texas, and Sparks, Nevada receive the lowest pay, while those in Fremont and Palo Alto, California receive the highest. The pay for factory workers has been increased from a minimum of $22 to $39 per hour, with employees divided into seven levels and those in leadership positions into two levels. In addition to the pay increase, workers may qualify for a ‘Cyber Wallet’ bonus every six months based on their performance periods.
These periods run from January to June and July to December. The pay increase comes as the United Auto Workers Union (UAW) shifts its focus to all-electric car manufacturers, having successfully negotiated with major companies such as Ford, General Motors, and Stellantis last year. Tesla has a history with unions, both in the United States and internationally. Tesla attributes its ability to attract and retain high-quality workers to the growth opportunities and career development it offers.
The company emphasized that a significant portion of its managers were promoted from within, and a large percentage of management employees have been with Tesla for over five years. Furthermore, Tesla provides its employees with ownership opportunities through stock and offers excellent health benefits, including free counseling, paid parental leave, paid time off, and zero-premium medical plan options from the first day of employment.