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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.”

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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.

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.

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“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:

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.

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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.

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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BREAKING: Tesla launches public Robotaxi rides in Austin with no Safety Monitor

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Tesla has officially launched public Robotaxi rides in Austin, Texas, without a Safety Monitor in the vehicle, marking the first time the company has removed anyone from the vehicle other than the rider.

The Safety Monitor has been present in Tesla Robotaxis in Austin since its launch last June, maintaining safety for passengers and other vehicles, and was placed in the passenger’s seat.

Tesla planned to remove the Safety Monitor at the end of 2025, but it was not quite ready to do so. Now, in January, riders are officially reporting that they are able to hail a ride from a Model Y Robotaxi without anyone in the vehicle:

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Tesla started testing this internally late last year and had several employees show that they were riding in the vehicle without anyone else there to intervene in case of an emergency.

Tesla has now expanded that program to the public. It is not active in the entire fleet, but there are a “few unsupervised vehicles mixed in with the broader robotaxi fleet with safety monitors,” Ashok Elluswamy said:

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Tesla Robotaxi goes driverless as Musk confirms Safety Monitor removal testing

The Robotaxi program also operates in the California Bay Area, where the fleet is much larger, but Safety Monitors are placed in the driver’s seat and utilize Full Self-Driving, so it is essentially the same as an Uber driver using a Tesla with FSD.

In Austin, the removal of Safety Monitors marks a substantial achievement for Tesla moving forward. Now that it has enough confidence to remove Safety Monitors from Robotaxis altogether, there are nearly unlimited options for the company in terms of expansion.

While it is hoping to launch the ride-hailing service in more cities across the U.S. this year, this is a much larger development than expansion, at least for now, as it is the first time it is performing driverless rides in Robotaxi anywhere in the world for the public to enjoy.

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Investor's Corner

Tesla Earnings Call: Top 5 questions investors are asking

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(Credit: Tesla)

Tesla has scheduled its Earnings Call for Q4 and Full Year 2025 for next Wednesday, January 28, at 5:30 p.m. EST, and investors are already preparing to get some answers from executives regarding a wide variety of topics.

The company accepts several questions from retail investors through the platform Say, which then allows shareholders to vote on the best questions.

Tesla does not answer anything regarding future product releases, but they are willing to shed light on current timelines, progress of certain projects, and other plans.

There are five questions that range over a variety of topics, including SpaceX, Full Self-Driving, Robotaxi, and Optimus, which are currently in the lead to be asked and potentially answered by Elon Musk and other Tesla executives:

SpaceX IPO is coming, CEO Elon Musk confirms

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  1. You once said: Loyalty deserves loyalty. Will long-term Tesla shareholders still be prioritized if SpaceX does an IPO?
    1. Our Take – With a lot of speculation regarding an incoming SpaceX IPO, Tesla investors, especially long-term ones, should be able to benefit from an early opportunity to purchase shares. This has been discussed endlessly over the past year, and we must be getting close to it.
  2. When is FSD going to be 100% unsupervised?
    1. Our Take – Musk said today that this is essentially a solved problem, and it could be available in the U.S. by the end of this year.
  3. What is the current bottleneck to increase Robotaxi deployment & personal use unsupervised FSD? The safety/performance of the most recent models or people to monitor robots, robotaxis, in-car, or remotely? Or something else?
    1. Our Take – The bottleneck seems to be based on data, which Musk said Tesla needs 10 billion miles of data to achieve unsupervised FSD. Once that happens, regulatory issues will be what hold things up from moving forward.
  4. Regarding Optimus, could you share the current number of units deployed in Tesla factories and actively performing production tasks? What specific roles or operations are they handling, and how has their integration impacted factory efficiency or output?
    1. Our Take – Optimus is going to have a larger role in factories moving forward, and later this year, they will have larger responsibilities.
  5. Can you please tie purchased FSD to our owner accounts vs. locked to the car? This will help us enjoy it in any Tesla we drive/buy and reward us for hanging in so long, some of us since 2017.
    1. Our Take – This is a good one and should get us some additional information on the FSD transfer plans and Subscription-only model that Tesla will adopt soon.

Tesla will have its Earnings Call on Wednesday, January 28.

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Elon Musk

Elon Musk shares incredible detail about Tesla Cybercab efficiency

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(Credit: Tesla North America | X)

Elon Musk shared an incredible detail about Tesla Cybercab’s potential efficiency, as the company has hinted in the past that it could be one of the most affordable vehicles to operate from a per-mile basis.

ARK Invest released a report recently that shed some light on the potential incremental cost per mile of various Robotaxis that will be available on the market in the coming years.

The Cybercab, which is detailed for the year 2030, has an exceptionally low cost of operation, which is something Tesla revealed when it unveiled the vehicle a year and a half ago at the “We, Robot” event in Los Angeles.

Musk said on numerous occasions that Tesla plans to hit the $0.20 cents per mile mark with the Cybercab, describing a “clear path” to achieving that figure and emphasizing it is the “full considered” cost, which would include energy, maintenance, cleaning, depreciation, and insurance.

ARK’s report showed that the Cybercab would be roughly half the cost of the Waymo 6th Gen Robotaxi in 2030, as that would come in at around $0.40 per mile all in. Cybercab, at scale, would be at $0.20.

Credit: ARK Invest

This would be a dramatic decrease in the cost of operation for Tesla, and the savings would then be passed on to customers who choose to utilize the ride-sharing service for their own transportation needs.

The U.S. average cost of new vehicle ownership is about $0.77 per mile, according to AAA. Meanwhile, Uber and Lyft rideshares often cost between $1 and $4 per mile, while Waymo can cost between $0.60 and $1 or more per mile, according to some estimates.

Tesla’s engineering has been the true driver of these cost efficiencies, and its focus on creating a vehicle that is as cost-effective to operate as possible is truly going to pay off as the vehicle begins to scale. Tesla wants to get the Cybercab to about 5.5-6 miles per kWh, which has been discussed with prototypes.

Additionally, fewer parts due to the umboxed manufacturing process, a lower initial cost, and eliminating the need to pay humans for their labor would also contribute to a cheaper operational cost overall. While aspirational, all of the ingredients for this to be a real goal are there.

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It may take some time as Tesla needs to hammer the manufacturing processes, and Musk has said there will be growing pains early. This week, he said regarding the early production efforts:

“…initial production is always very slow and follows an S-curve. The speed of production ramp is inversely proportionate to how many new parts and steps there are. For Cybercab and Optimus, almost everything is new, so the early production rate will be agonizingly slow, but eventually end up being insanely fast.”

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