Internal document: This is how much Tesla factory workers earn in the USA

An internal document shows how much wages Tesla pays its factory workers in the USA. A bonus system with different rating levels is also apparently used.

Salary range reported between $22 and $39 per hour

According to a report from Business Insider, Tesla increased the salaries of its US factory workers at the beginning of 2024. As the internal report shows, the new salary range is between $22 and $39 per hour. The remuneration depends on the cost of living in the factory worker’s region. According to the report, wages are particularly high in the Californian plants in Fremont and Palo Alto, while workers in the plants in Austin, Texas, and Sparks, Nevada, receive the lowest salaries. The wage increases reflect a general trend of rising wages in the auto industry, partly in response to unionization efforts by the United Auto Workers (UAW), which has become much more aggressive under its new president.

Different pay levels

According to the internal document, Tesla divides its employees into different pay tiers, with factory workers divided into seven tiers and managers into two tiers. Under this structure, workers at the lowest tier in Fremont, which has a relatively high cost of living, are paid $25.25 per hour, while those at the highest tier are paid $35.50 per hour. In contrast, the salary for Tier 1 workers in the lowest-wage regions starts at $22 per hour. This differentiation reflects the varying cost of living in different locations.

Bonus system with different rating levels

According to Business Insider’s report, Tesla also uses a five-point rating system for employee performance reviews that take place twice a year. The results of these reviews influence the awarding of bonuses in the Tesla “Cyber ​​Wallet” bonus system. Employees with lower ratings do not receive bonuses, while higher ratings lead to better bonuses, according to the report. The bonuses received could be used in a variety of ways, for example for paid vacation or stock options, according to the internal document.

Tesla may be preparing layoffs

However, according to Bloomberg, there are also indications that Tesla is currently preparing layoffs. As Bloomberg reports, Tesla managers were asked at the beginning of February 2024 which employees were particularly important. Given the company’s economic situation, it is not unlikely that there could be layoffs. In a January 2024 announcement, the company said that revenue growth in 2024 may be “significantly lower” than before. This is in connection with efforts to bring a new, more affordable vehicle onto the market. According to the statement, the company is in a transition phase “between two major waves of growth” marked by the global expansion of Model 3 and Model Y and the introduction of the new vehicle.

Editorial team

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