Tesla's US factory workers are gearing up for pay raises, in the latest twist in Tesla’s ongoing conflict with the auto unions.

Tesla Opens Its Wallet

Tesla, the trailblazer in the EV realm, is bumping salaries for its factory workers, coinciding with the United Auto Workers’ (UAW) push to unionize Tesla's US plants in Texas, California, and Nevada. The grapevine reveals murmurs among workers about impending pay hikes, an anticipation tinged with mystery as the details remain undisclosed.

Fighting the UAW

In the ongoing game between Tesla and the UAW, the "UAW bump" is raising its head once again. This term, coined by UAW President Shawn Fain, encapsulates the raises bestowed by big car companies upon nonunion automakers to deter unionization. While the UAW has set its sights on various US plants, Tesla has emerged as a pivotal battleground, alongside EV startups Rivian and Lucid. All this comes at a time when Tesla is embroiled in a labor-related scuffle with workers in Sweden.

The anticipated pay raise covers Tesla's production workers, material handlers, and quality inspectors and takes the form of a "market adjustment", according to the company. The UAW recently won over 30% of the workers at a Mercedes-Benz plant signing cards for a union vote, a crescendo following similar movements at Volkswagen. In the broader industry melody, UAW pacts with major automakers promise substantial pay raises by 2028.

Hertz's EV Issues

Amidst the Tesla’s union issues, Hertz's stance on EVs appears to be taking a turn from the worse. The rental giant, initially one of those heralding an EV future, is hitting the brakes and is selling 20,000 EVs from its fleet of 50,000. The company initially had plans to buy 100,000 Teslas, but ended up only buying 35,000 by October 2023.

Hertz’s fire sale is good news for shoppers seeking an affordable EV, and bad news for virtually everyone else https://t.co/f4c3yBur1H

— Bloomberg (@business) January 15, 2024

Hertz claimed that demand for EVs was down and they’re expensive to maintain and repair. Selling off the vehicles means that the rental giant will take a $245 million hit due to depreciation.

With Tesla facing a series of issues and his ongoing disaster that is Twitter, it hasn’t been a great start to the year for Elon Musk.