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Stellantis files several lawsuits in efforts to block UAW strike

Credit: UAW

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Dodge, Chrysler, and Jeep’s multinational parent company Stellantis has filed several lawsuits against the United Automotive Workers (UAW) union, after the organization has been threatening to strike against the automaker over claims that contract promises have not been upheld.

Stellantis filed an initial lawsuit against the UAW and Local 230 on Thursday in the U.S. District Court for the Central District of California, claiming that a strike would be illegal and would violate the parties’ contract. Then, on Friday, Stellantis filed eight additional lawsuits against the union and local chapters over recent strike threats, along with claiming that it rejected requests over the weekend to re-boot a defunct jobs’ bank program for employees affected by the closing of a Belvidere, Illinois factory.

The automaker filed the suits against the UAW and 23 separate local chapters, including one against seven local chapters filed in the U.S. District Court for the Eastern District of Michigan—though the UAW has denied attempting to re-boot the jobs bank program.

“The company rejected the UAW’s latest proposal because it would revert to prebankruptcy terms and conditions that would jeopardize the company’s future,” Stellantis said in a statement on Monday (via Automotive News). “The company understands that this situation is extremely unsettling for its Belvidere employees, which is why it agreed during 2023 negotiations to place these employees on temporary layoffs, which provide 74 percent of pay and full healthcare benefits.”

The jobs bank benefits were adopted by the “Big Three” automakers in the 1980s, effectively allowing workers to remain on active payroll despite not being allowed to work. According to Stellantis, over 2,000 employees in the jobs bank remained at a “staggering cost.”

The suits come after the UAW has been threatening to strike against Stellantis for the last few weeks, and after it filed a federal charge of unfair labor practices against the automaker last month.

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The union has been threatening strikes Stellantis over claims that it has failed to uphold an agreement from last year’s contract to re-open the Belvidere Assembly Plant after it was closed indefinitely in February 2023. Following the closure, around 1,300 employees were left without work.

RELATED: Stellantis starts search for CEO successor amidst inventory woes

UAW Stellantis Director Kevin Gotinsky denied claims that the union was re-booting the job bank program in a follow-up statement on Monday, instead pointing to the company’s need to keep to promises to re-open the retired Illinois plant to avoid the strikes.

“If Stellantis lives up to its commitments and reopens Belvidere Assembly and builds the Belvidere parts Megahub, our members will be back to work soon and the cost to the company will be minimal,” Gotinsky said. “These employees can and are willing to perform work today. That is all they want, to have a future and be able to provide for their families as agreed to in our contract.”

UAW President Shawn Fain also issued a statement in response to the news:

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Stellantis, formerly FCA, formerly Cerberus, formerly Daimler, formerly Chrysler, is following in a long line of failing corporate executives blaming autoworkers for their own mismanagement.

It is gross mismanagement by top executives that is killing this company. It is laughable that Stellantis claims our proposal to reopen Belvidere is ‘outrageous.’ In just the last 9 weeks, Stellantis has pissed away $1 billion in stock buybacks for a total of $3 billion in stock buybacks this year. Our proposal would cost a fraction of that and would go directly to the autoworkers who have built this company.

Everyone knows the so-called ‘jobs bank’ didn’t cause the 2008 bankruptcies, and autoworkers aren’t responsible for CEO Carlos Tavares’ mismanagement today. We are asking that Stellantis keep their contractual commitments and do right by Belvidere autoworkers and autoworkers across the country. If they can’t do that, then the only answer is for autoworkers to join with dealers, suppliers, and shareholders in demanding that Carlos be shitcanned.

Stellantis now facing strike from unions in Italy

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

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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

Elon Musk gives his most telling Tesla-SpaceX merger conversation yet

Elon Musk hinted a Tesla-SpaceX merger could be coming, and Wall Street is taking notice.

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Elon Musk gave his clearest signal yet that Tesla and SpaceX could eventually combine, telling the All-In Summit in Los Angeles that the two companies’ deepening collaboration makes the question worth asking. Sawyer Merritt first surfaced the highlight on X Tuesday.

Asked directly why Tesla and SpaceX remain separate given how closely they already work together, Musk told hosts at the summit: “Great question there. With all this collaboration, on so many levels, who can imagine what action one might take when there’s so much close collaboration in so many areas.” SpaceX President Gwynne Shotwell, who joined Musk on stage, added that SpaceX personnel have already moved into xAI to fill leadership and engineering gaps, saying the businesses are integrating “faster than I thought,” though “not fully integrated yet,”

The comments landed on top of merger speculation that has been building on Wall Street for months. JPMorgan has called a tie-up “strategically coherent on paper,” pointing to overlapping ambitions in AI, robotics, energy, transportation and space. Jefferies went further, estimating Musk could retain roughly 55.3 percent voting control in a deal structured without a premium, a scenario that would still leave room for Tesla shareholders to come out ahead. On Kalshi, traders now put the odds of a merger before 2028 at 66 percent.

Tesla’s stake in SpaceX, still under one percent, traces back to its earlier investment in xAI, which converted to SpaceX equity after SpaceX absorbed the AI company. The two are also jointly building Terafab, a chip facility in Austin meant to serve both Tesla’s AI computing needs and SpaceX’s satellite ambitions. Wedbush analyst Dan Ives has stood by a 2027 merger timeline for months, and Cathie Wood’s ARK Invest recently floated a similar case, an idea Musk pushed back on directly at the time.

Another Tesla SpaceX merger prediction by ARK Invest has Elon Musk talking

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The timing adds another layer. Tesla has scheduled an October 1 unveiling for its next generation Roadster at a venue near SpaceX’s McGregor, Texas test site, using the phrase “Go for launch” in its promotional material. Both stocks dipped roughly 2 percent Monday before recovering slightly in premarket trading Tuesday, with SpaceX shares up about 0.4 percent and Tesla essentially flat.

Musk stopped short of confirming anything is in motion. But unlike his past denials of a corporate restructuring, this response didn’t rule one out, and it came with Shotwell sitting next to him describing an integration that’s already underway.

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Elon Musk

Tesla Roadster unveiling is getting hyped up by Elon Musk

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tesla roadster
Credit: Petersen Auto Museum

The Tesla Roadster unveiling is getting hyped up by the company’s CEO Elon Musk, who has been a big reason the product has such high expectations due to delayed timelines and a constant need to make it even more insane than before.

Tesla announced on September 12 that it would officially unveil the Roadster in Waco, Texas, on October 1, ending years of patience for fans and reservation holders who have waited for the all-electric supercar to enter production since 2017.

Musk has said that this event will be well worth the wait on several occasions, and last year on the Joe Rogan Experience, he said that there should be a closing chapter to supercars- the end of cars that aren’t focused on safety.

He said:

“Whether it’s good or bad, it will be unforgettable. My friend Peter Thiel once reflected that the future was supposed to have flying cars, but we don’t have flying cars. I think if Peter wants a flying car, he should be able to buy one. I think it has a shot at being the most memorable product unveil ever. This is some crazy technology in this car. Let’s just put it this way: if you took all the James Bond cars and combined them, it’s crazier than that.”

Musk’s teases have continued, and now that the event is roughly two weeks away, it seems like Roadster is finally going to show up and blow some minds:

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Tesla has definitely dragged out the development of the Roadster, but there is a good reason for it.

Tesla has been working on many other projects, most notably self-driving efforts to increase passenger safety, and those simply took priority over the Roadster, a low-volume, high-performance sports car that has a lightning-fast acceleration rate of 0-60 MPH in just 1.1 seconds, could potentially fly, and contributes very little to the company’s mission.

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However, many people have the Roadster on pre-order through the referral program or with their own money, and it is time that Tesla delivers on that.

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Elon Musk’s Boring Company has big plans for Las Vegas by year’s end

Elon Musk’s Boring Company says Vegas Loop stations will double by year end once again.

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the boring company's vegas loop entrance

The Boring Company says the Vegas Loop’s station count will double by the end of the year, tying the target to a hiring push for drivers and operations managers in Las Vegas. “Vegas Loop is getting bigger – the station count will double by end of year!” the company wrote in a post on X, attaching listings for a Loop driver and a senior Loop operations manager.

The number checks out against what’s already public, with the Vegas Loop currently running 14 operational stations, while the Boring Company’s own project page lists 28 as the target for the end of 2026.

Much of that growth is tied to tunnels that are already built and waiting on an opening date. A roughly two-mile dual tunnel system under Paradise Road, connecting Westgate to a planned station at 4744 Paradise Road, is expected to open in stages over the coming weeks, Las Vegas Convention and Visitors Authority chief executive Steve Hill told the Review-Journal last week. New stations at 4744 Paradise, Virgin Hotels Las Vegas, and the former Gordon Biersch site would come online with it, several of them built to speed up rides to Harry Reid International Airport ahead of Formula 1’s Las Vegas Grand Prix.

Clark County entitled Vegas Loop for 123 stations after approving 19 more in August, as Teslarati reported at the time. Entitlement and construction move at different speeds on this project, so county approval alone does not guarantee a station opens on any particular schedule.

Clark County approved 18 additional stations back in 2023, part of a plan that pushed the system’s target to 69 stations across 65 miles, doubling the network on paper for the first time. The target kept climbing after that, to roughly 93 stations by the end of that year and 104 by last year, before August’s vote pushed it to 123. This week’s announcement is the first time that doubling language has been attached to stations actually running rather than stations merely approved on a county map.

Ridership gives some sense of what a denser network could carry. Boring Company executive Mike Baier said in July that the Vegas Loop already moves around 40,000 passengers on busy convention days, a total that tops most light rail systems in the country despite the system running on a fraction of its planned tunnel mileage. Company leadership has projected ridership could triple or quadruple once the airport connector tunnels fully open.

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Boring Company did not say which stations beyond those already under construction would open by year end, or whether the hiring push points to a fleet expansion alongside the new stops.

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