Tesla factory workers received a pay raise in January. Getty/David Butow
Tesla has announced wage increases in the US effective January 8th.
The company now pays U.S. factory workers between $22 and $39 an hour, according to documents seen by Business Insider.
Take a look at how much Tesla factory workers make in the US here.
Tesla raised wages for its factory workers in the US last month. Internal documents seen by Business Insider show how much factory workers are now making.
Under new wage guidelines announced in December and put into effect on January 8, Tesla factory workers will earn between $22 and $39 an hour (the equivalent of about $20 to $36). This emerges from the internal documents available to Business Insider.
The company has divided the wage levels into three regions, which are based on the cost of living in the respective areas. The Tesla factories in Austin (Texas) and Sparks (Nevada) receive the lowest wages and the locations in Fremont and Palo Alto (California) receive the highest wages.
The broader minimum wages in some regions follow a similar trend: In California, workers receive a state-mandated minimum wage of $16 per hour, while Nevada and Texas have minimum wages of $10.25 and $7.25 per hour, respectively.
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Tesla divides its factory workers into seven tiers, while managers are divided into two tiers. For example, under the new pay structure, Level 1 workers at the Fremont factory will receive $25.25 per hour, while Level 7 workers will receive $35.50. Tier 1 workers in the lowest-paid regions, on the other hand, are entitled to $22 an hour.
For comparison: According to the U.S. Bureau of Labor Statistics The average auto worker earned about $28 an hour last year. Under the auto union’s new contract, the highest-paid auto workers will be more than 100 by the end of the contract in 2027 40 Dollar earn per hour.
This is what the employees in the different regions and positions deserve
RangRegion 1Region 2Region 3Cyber WalletLevel 125,25 Dollar23 Dollar22 Dollar2000 DollarLevel 227 Dollar24,75 Dollar23,50 Dollar2000 DollarLevel 328,75 Dollar26,25 Dollar25 Dollar2500 DollarLevel 430,50 Dollar28 Dollar26,75 Dollar2500 DollarLevel 532 Dollar29,50 Dollar28,25 Dollar2500 DollarLevel 634 Dollar31,25 Dollar30 Dollar3000 DollarLevel 735,50 Dollar32,75 Dollar31,50 Dollar3000 DollarFührungskraft-Level 137,25 Dollar34, 25 Dollar33 Dollar3000 DollarFührungskraft-Level 239 Dollar36 Dollar34,50 Dollar3000 Dollar
According to the document, employees will be able to move between tiers every six months depending on their performance and Tesla’s overall results.
Employees are also entitled to a bonus every six months at the end of performance periods, which range from January to June and July to December. Tesla’s bonus system is called Cyber Wallet, and the bonuses are based on both employee performance and Tesla’s results, the document shows. It is unclear what the document means by “results.”
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The automaker uses a five-point system for its semiannual performance reviews, several employees said. The performance reviews help determine eligibility for the cyber wallet. At Tesla, workers who receive a one or two are considered underperforming and do not receive points toward a bonus, employees told BI. A rating of three is considered to be meeting expectations and a bonus will be paid, while a rating of four or five means the person has exceeded expectations and is eligible for an even larger bonus, workers said to whom BI spoke.
The cyber wallet bonuses can be used for 20 hours of paid vacation at the employee’s current hourly rate, a long-term cash bonus, or restricted stock units and stock options, according to an internal Tesla compensation document.
A Tesla spokesperson did not respond to a request for comment before publication.
Wages in the US automotive industry are rising
Tesla employs over 140,000 people, most of them in the USA. The automaker told employees in January that it was giving production and senior executives a “market raise,” according to fliers posted at Tesla factories „Bloomberg“ first reported.
The electric car maker is one of several that have increased wages in recent months. Toyota and Hyundai have also increased wages at their US factories as part of the historic United Auto Workers (UAW) deal.
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And Tesla is also facing pressure from unions: UAW President Shawn Fain confirmed that he has Tesla in his sights, as well as the workers at the Tesla factory in Fremont According to reports A UAW organizing committee has already been formed.
The effort will not be without challenges, as CEO Elon Musk has expressed confidence that a union is not necessary. Some Tesla workers have told BI that they would find it difficult to join a union.
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