- Tesla has announced salary increases starting January 8th.
- The company currently pays its U.S. factory workers between $22 and $39 an hour, according to documents seen by Business Insider.
- Let's take a look at the incomes of Tesla factory workers across the country.
Last month, Tesla raised pay for factory workers across the United States.
Internal documents seen by Business Insider reveal how much factory workers are currently paid.
Under new pay guidelines announced in December and taking effect on January 8, Tesla factory workers now earn between $22 and $39 an hour, according to internal documents.
The company divides pay levels into three regions based on each region's cost of living, with Tesla factories in Austin, Texas and Sparks, Nevada receiving the lowest salaries, and the company's locations in Fremont and Palo Alto, California receiving the lowest salaries. receive a high salary. pay. Broad minimum wages in some regions follow similar trends, with workers in California receiving a state-mandated minimum wage of $16 an hour, while minimum wages in Nevada and Texas are Their hourly wages are $10.25 and $7.25, respectively.
Tesla divides factory workers into seven levels and leads into two levels. For example, a Level 1 worker at the Fremont plant will receive $25.25 per hour under the new compensation structure, and a Level 7 worker will receive $35.50 per hour. Meanwhile, Level 1 workers in the lowest-paying areas are eligible to be paid $22 an hour.
For comparison, the average auto worker earned about $28 an hour last year, according to the U.S. Bureau of Labor Statistics. Under the UAW's new contract, the highest-paid autoworkers will earn more than $40 an hour by the end of their contract in 2027.
Employees will be eligible to move between levels every six months based on their performance and Tesla's overall performance, according to the document.
Employees are also eligible to receive bonuses at the end of each six-monthly January-June and July-December performance period. Tesla's bonus system is called CyberWallet, and documents show that bonuses are determined by the employee's performance, not just Tesla's performance. It is unclear what “results” in this document means.
According to multiple employees, the company uses a five-point rating system for performance reviews twice a year. Performance reviews help determine cyber wallet eligibility. An employee told her BI that in Tesla's evaluations, employees who are given a rating of 1 or 2 are considered poor performers and do not receive bonus points. According to the employee, a rating of 3 indicates that the individual has met expectations and is eligible for a bonus, while a rating of 4 or 5 indicates that the individual has exceeded expectations and is eligible for a higher bonus. It is said to mean something.
Cyberwallet bonuses can be used toward 20 hours of paid time off at an employee's current hourly rate, long-term cash compensation, or restricted stock units or stock options, according to an internal Tesla compensation document.
A Tesla spokesperson did not respond to a request for comment prior to publication.
Tesla employs more than 140,000 people, the majority of whom are based in the United States. A flyer from a Tesla factory, first reported by Bloomberg, said the automaker told employees in January that it would give “market-adjusted raises” to production staff and leaders.
The company is one of several companies to raise wages in recent months. Toyota Motor Corp. and Hyundai Motor Co. also increased wages at their U.S. factories following a historic deal from the United Auto Workers union.
Tesla also faces pressure from union efforts. UAW President Sean Fein has said Tesla is on the horizon, and employees at Tesla's Fremont factory have reportedly already formed a UAW organizing committee.
The effort presents challenges, as CEO Elon Musk has expressed confidence that a union is not needed, and some Tesla employees have previously told BI that it would be difficult to join a union. It's not that there aren't any.
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