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GM and Ford layoffs hit four more plants as UAW strikes continue

Credit: UAW

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General Motors (GM) and Ford have announced additional layoffs related to the ongoing United Auto Workers (UAW) strike, affecting as many as 500 workers spread across four different plants.

On Monday, Ford said that it would furlough 330 workers across a stamping plant in Chicago and an engine plant in Lima, Ohio, according to a report from Reuters. Additionally, GM is furloughing 130 employees at a metal center in Parma, Ohio, along with 34 others at a metal center in Marion, Indiana

The layoffs are reportedly indefinite, and they come after the UAW escalated walkouts against both Ford and GM on Friday, bypassing Stellantis as the strikes entered their third week. The second wave of additional walkouts targeted GM’s Delta Township assembly plant in Lansing, Michigan, along with a Ford assembly plant in Chicago. Stellantis avoided additional walkouts after making last-minute concessions with the UAW.

The prior Friday, the UAW ordered workers to walk out of 18 GM and 20 Stellantis parts distribution centers after the strikes originally began on September 15 following the expiration of previous union contracts.

The news also comes nearly two weeks after GM shut down its Fairfax, Kansas plant and laid off 2,000 workers without unemployment, citing a lack of available work. Ford also announced temporary layoffs of around 600 workers at a Michigan plant last month, while Stellantis furloughed around 370 employees at plants in Ohio and Indiana.

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UAW could try to unionize Tesla and other automakers next

Ford CEO Jim Farley and GM CEO Mary Barra blasted the UAW for the strikes on Friday, criticizing union President Shawn Fain for not accepting current contract offers on the table.

The UAW said that it was hosting bargaining sessions with GM and Ford on Monday, along with reaching a new labor deal with Volvo-owned Mack Trucks before previous contracts expired on Sunday night. Still, the union noted that the contracts needed to be ratified yet, though they included significant wage increases.

This is the first time the UAW has lodged simultaneous strikes against all three of Michigan’s “Big Three” automakers.

JPMorgan estimated in a research note on Monday that the strike has so far cost Ford $145 million and GM $191 million, though he noted that the automakers were getting “close on pay and benefits.” Anderson Economic Group estimates total losses from the first two weeks of the strike to be $3.9 billion, comprised of about $1.12 billion in losses for Ford, GM and Stellantis, $1.29 billion in losses for suppliers and $1.2 billion in losses for dealers and customers.

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What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send your tips to us at tips@teslarati.com.

Zach is a renewable energy reporter who has been covering electric vehicles since 2020. He grew up in Fremont, California, and he currently lives in Colorado. His work has appeared in the Chicago Tribune, KRON4 San Francisco, FOX31 Denver, InsideEVs, CleanTechnica, and many other publications. When he isn't covering Tesla or other EV companies, you can find him writing and performing music, drinking a good cup of coffee, or hanging out with his cats, Banks and Freddie. Reach out at zach@teslarati.com, find him on X at @zacharyvisconti, or send us tips at tips@teslarati.com.

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Elon Musk

Tesla Robotaxis are becoming a common sight on Austin’s public roads

Tesla Robotaxi sightings are becoming much more frequent ahead of its launch planned for this month.

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Credit: @Muzeishen | X

Tesla Robotaxis are becoming a common sight on the public roads of Austin, Texas, as yet another test mule has been spotted near the company’s target launch date.

Just over a week ago, the first public sighting of a driverless Tesla Robotaxi was reported. The vehicle was an updated version of the Tesla Model Y, which will be the initial model used in the public deployment of the Robotaxi platform.

Throughout the past week, sightings have been more common, as people in Austin have been looking for the unique decal Tesla is placing on car doors to recognize the driverless vehicles (After all, Robotaxis are not as easy to recognize as driverless vehicles without the LIDAR unit on the roof like Waymo).

Yet another sighting of a Robotaxi was shared on social media today, just two days before CEO Elon Musk’s proposed launch date of June 22:

It is easy to tell that there is nobody in the driver’s seat of this vehicle. Tesla is using its white interior on this particular mule, making it incredibly simple to recognize that no human is controlling the car.

Whether Tesla will still meet the June 22nd deadline remains to be seen, but it is no secret that the company is prioritizing safety ahead of offering public rides.

Tesla will initially roll out the Robotaxi platform in Austin, but it has already started the regulatory process in other areas, specifically California.

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The National Highway Traffic Safety Administration (NHTSA) is also helping to streamline the process for companies developing driverless vehicles by giving exemptions to automakers. It will make things much more efficient, benefiting Tesla and other car companies that have similar plans.

Tesla Robotaxi just got a big benefit from the U.S. government

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Elon Musk

Elon Musk teases Tesla Optimus Gen 3 capabilities: ‘So many improvements’

If you thought Optimus Gen 2 was impressive, Tesla might have a surprise for you.

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Credit: Tesla Optimus | X

Elon Musk has teased that huge improvements are coming to Tesla’s Optimus humanoid robot, which is arguably the product that the company is developing with the most potential for everyday use by consumers and valuation increases from a financial perspective.

Optimus is still in the development stages, but Tesla has made great strides in its development over the past several years. It started as a simple idea that was unveiled with a human being in a spandex suit.

Tesla posts Optimus’ most impressive video demonstration yet

Just a few years later, Tesla has developed several humanoid robot prototypes that have made their way to influencers and have lent a helping hand around the company’s manufacturing facilities.

Tesla has already introduced two generations of Optimus, as the most recent release featured a vast number of improvements from the initial version.

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The following is a list of things Tesla improved upon with Optimus Gen 2 compared to Gen 1:

  • Tesla introduced a weight reduction of roughly 22 pounds, improving efficiency and agility
  • Optimus Gen 2 had a walking speed that improved by 30 percent over Gen 1
  • Tesla developed more capable hands that had 22 degrees of freedom, double that of Gen 1. This improved object handling
  • Optimus Gen 2 had a 2-degree-of-freedom neck, as Gen 1’s was fixed
  • Tesla integrated actuators and sensors for better performance. This includes things like foot force/torque sensing, articulated toe sections that are close to human foot geometry for better balance and movement
  • Optimus Gen 2 has 28 degrees of overall freedom, improving flexibility from the first generation
  • Tesla’s Optimus Gen 2 can do more than Gen 1, and has shown improved motor control and precision, doing things like squats, yoga poses, dancing, and even poaching an egg

These changes essentially brought Tesla closer to what will be the Optimus version that makes it to production. The company has plans to start production for the public in 2026, but some units will be manufactured for internal use within its factories as soon as this year. Tesla has said it could scale to 100,000 units or more by next year.

Musk also revealed to Teslarati recently that the company is in the process of building the production line that will bring manufacturing rates of Optimus to that level.

However, there is another design of Optimus coming, and Musk says it will feature “so many improvements”:

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Tesla has said that Optimus will have the capability to perform tedious and time-consuming tasks like folding laundry, babysitting, cooking, walking the dog, and plenty of other things. However, it will be super impressive to see it do things that require true coordination, like threading a needle, for example.

Musk did not hint toward any specific developments that Tesla will aim for with Optimus Gen 3, but the sky is the limit, especially as it will be performing some manufacturing tasks across its factories.

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Elon Musk

Elon Musk slams Bloomberg’s shocking xAI cash burn claims

Musk stated that “Bloomberg is talking nonsense.”

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Credit: xAI/X

Elon Musk has forcefully rejected Bloomberg News’ claims that his artificial intelligence startup, xAI, is hemorrhaging $1 billion monthly. 

In a post on X, Musk stated that “Bloomberg is talking nonsense.” He also acknowledged an X user’s comment that people “really have no idea what’s at stake” with AI.

Bloomberg‘s Allegations and Musk’s Rebuttal

The Bloomberg News report painted a dire picture of xAI’s finances. Citing people reportedly familiar with the matter, the news outlet claimed that xAI burns $1 billion a month as costs for building advanced AI models outpaced the company’s limited revenues. 

Bloomberg alleged that xAI is planning to spend over half of a proposed $9.3 billion fundraising haul in three months, with a projected $13 billion loss in 2025. The report also claimed that of the $14 billion that xAI has raised since 2023, only $4 billion remained by Q1 2025. Even this amount, the news outlet alleged, will be nearly depleted in Q2.

xAI did not comment on Bloomberg‘s claims, though Elon Musk shared his thoughts on the matter on social media platform X. In response to an X user who quoted the publication’s article, Musk noted that “Bloomberg is talking nonsense.” Musk, however, did not provide further details as to why the publication’s report was fallacious.

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xAI’s Bright Horizon

Despite Bloomberg‘s claims, even the publication noted that xAI’s prospects are promising. The company, now merged with X, aims to leverage the platform’s vast data archives for model training, which could reduce costs compared to rivals like OpenAI. Tapping into X also allows xAI to access real-time information from users across the globe. 

xAI’s valuation reportedly soared to $80 billion by Q1 2025, up from $51 billion in 2024. The AI startup has attracted heavyweight investors such as Andreessen Horowitz, Sequoia Capital, and VY Capital so far, and optimistic projections point to profitability possibly being attained by 2027. This would be quite a feat for xAI as OpenAI, the AI startup’s biggest rival, is still looking at 2029 as the year it could become cash flow positive.

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