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Tesla factory workers intensify unionization efforts, file charges with National Labor Board

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Tesla has dismissed charges filed by the Unfair Labor Practice with the National Labor Relations Board by two employees as “entirely without merit,” stating that it will respond to the allegations as part of the NLRB process.

In the latest chapter of the fight to unionize the Tesla Fremont factory, the United Autoworkers Union is again attempting to sway employees to the cause by filing an unfair labor practice charge, alleging illegal surveillance, coercion, intimidation and prevention of worker communications by Tesla in an effort to prevent or otherwise hinder unionization of the Fremont factory.

In response to past attempts by the UAW to influence workers at the Fremont factory to form a union, Tesla CEO Elon Musk made his pitch to employees against unionization in a letter to employees where he extolled the benefits Tesla was already providing without a union. The basis behind his argument hinged largely on the valuation of Tesla stock issued to employees and the subsequent increase in price of that stock.

Tesla was called to task in the charges for what is being characterized as an overly broad confidentiality agreement. Tesla has always operated more like a Silicon Valley technology company than a car manufacturer, and its company policy on confidentiality reflects that of technology companies that produce highly competitive, industry shifting tech that are often bound by strict deadlines.

In the midst of leading the disruption of several industries, while making headlines for every move the company makes, it comes as no surprise that Tesla opted for an overly broad confidentiality agreement. However, the confidentiality agreement was deemed to be so broad that the company was contacted by five members of the California legislature and a number of organizations in the Bay Area in a request to loosen up wording of the agreement and ensure it did not infringe upon employee rights. According to a report by Capital and Main, the statement currently includes language requiring confidentiality in relation to “everything that you work on, learn about or observe in your work about Tesla.”

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The new charges also call out Tesla for alleged violations in several specific areas, one of which was preventing the distribution of flyers by employees at shift change on company property. After several workers handed out literature about unionization at the factory in February, Tesla fired back with a new policy stating that workers “were not allowed to pass out any literature unless it was pre-approved by the Employer.” The charges make a plea that employees should have the right to bring up issues and to talk about them amongst themselves as a means of driving towards resolution.

The charges will be reviewed by the NLRB which will make a determination after gathering input from all parties involved.

These charges highlight the challenge Tesla faces as it seeks to ramp up factory operations as part of the Model 3 production ramp. With all hands on deck to deliver Model 3, Tesla has its work cut out for it as it seeks to balance the rights, needs and morale of its employees with the needs of the business.

Here’s the full text of Musk’s company wide email that was published by TechCrunch in February that discusses unionization efforts taking place at the factory. We’ve also obtained a copy of Tesla’s confidentiality agreement to employees which we’ve embedded below.

For Tesla to become and remain one of the great companies of the 21st century, we must have an environment that is as safe, fair and fun as possible. It is incredibly important to me that you look forward to coming to work every day. For that, we must be a fair and just company – the only kind worth creating.

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This is vital to succeed in our mission to accelerate the advent of a clean, sustainable energy future. The forces arrayed against us are many and incredibly powerful. This is David vs Goliath if David were six inches tall! Only by being smarter, faster and working well as a tightly integrated team do we have any chance of success. We should never forget the history of car startups originating in the United States: dozens have gone bankrupt and only two, Tesla and Ford, have not. Despite the odds being strongly against us, my faith in you is why I am confident that we will succeed.

That is why I was so distraught when I read the recent blog post promoting the UAW, which does not share our mission and whose true allegiance is to the giant car companies, where the money they take from employees in dues is vastly more than they could ever make from Tesla.

The tactics they have resorted to are disingenuous or outright false. I will address their underhanded attacks below. While this discussion focuses on Fremont, these same principles apply to every Tesla facility worldwide.

Safety First

The workplace issue that comes before any other is safety. If you do not have your health, then nothing else matters. Simply due to size and bad luck, there will always be some injuries in a company with over 30,000 employees, but our goal is simple: to have as close to zero injuries as possible and be the safest factory in the auto industry by far. The Tesla executive team and I are absolutely committed to this goal.

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That is why I was particularly troubled by the safety claim in last week’s blog post, which said: “A few months ago, six out of eight people in my work team were out on medical leave at the same time due to various work-related injuries. I hear the ergonomics are even more severe in other areas of the factory.”

Obviously, this cannot be true: if three quarters of his team suddenly went on medical leave, we would not be able to operate that part of the factory. Furthermore, if things were really even worse in other departments, that would mean something like 80% or more of the factory would be out on injury, production would drop to virtually nothing and the parking lot would be almost empty. As you know firsthand, we have the *opposite* problem – there is never enough room to park! In fact, we are working at top speed to build more parking. Also, hopefully our darn BART train station will open before all hell freezes over!

After looking into this claim, not only was it untrue for this individual’s team, it was untrue for any of the hundreds of teams in the factory.

That said, reducing excess overtime and improving safety are extremely important. This is why we hired thousands of additional team members to create a third shift, which has reduced the burden on everyone. Moreover, since the beginning of Tesla production at Fremont five years ago, there have been dedicated health and safety experts covering the factory and we hold regular safety meetings with operations leaders. Since the majority of the injuries in the factory are ergonomic in nature, we have an ergonomics department focused exclusively on this issue.

The net result is that since January 1st, our total recordable incident rate (TRIR) is under 3.3, which is less than half the industry average of 6.7.

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Of course, the goal is to have as close to zero injuries as humanly possible, so we need to keep improving. If you have a safety concern or an idea on how to make things better, please let your manager, safety representative or HR partner know. You can also send an anonymous note through the Integrity Hotline (this applies broadly to any problems you notice at our company) or you can email safety@tesla.com.

Compensation

At Tesla, we believe it is important for everyone to be an owner of the company. This is your company. That is why, unlike other car companies, everyone is awarded shares and you get to buy stock at a discount compared to the public through the employee stock purchase program. Last year, stock equity grants were increased significantly and it will happen again later this year once Model 3 achieves high volume.

The chart below contrasts the total comp received by a Tesla production team member who started on January 1, 2013 against the total comp received over the same period at GM, Ford, and Fiat Chrysler. A four year period is used because that’s the vesting length of a new hire equity grant. I believe the equity gain over the next four years will be similar. As shown below, a Tesla team member earned between $70,000 and $100,000 more in total compensation than the employees at other US auto companies!

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Work Hours

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Another issue raised in the UAW blog was hours worked. First, I want to recognize how hard you worked to make our company successful. Those hours mattered to you, to your family and to our company, and I can’t tell you how much I appreciate them.

However, the pace needs to be sustainable. This is why the third shift was established and why we created alternate work schedules based on feedback from various teams in the factory.

These changes have had a big impact. The average amount of hours worked by production team members this year is about 43 hours per week. The percentage of overtime hours has declined by almost 50% since the super tough time we had last year achieving rate on the Model X, which is probably the hardest car to build in history. What an amazing accomplishment! It is also a lesson learned, which is why Model 3 is designed to be dramatically easier to manufacture.

Fun

As we get closer to being a profitable company, we will be able to afford more and more fun things. For example, as I mentioned at the last company talk, we are going to hold a really amazing party once Model 3 reaches volume production later this year. There will also be little things that come along like free frozen yogurt stands scattered around the factory and my personal favorite: a Tesla electric pod car roller coaster (with an optional loop the loop route, of course!) that will allow fast and fun travel throughout our Fremont campus, dipping in and out of the factory and connecting all the parking lots. It’s going to get crazy good ?

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Thanks again for all your effort and I look forward to working alongside you to create an amazing future!

Elon

[pdf-embedder url=”http://www.teslarati.com/wp-content/uploads/2017/04/Tesla-Employee-Confidentiality-Agreement.pdf”]

I'm passionate about clean technology, sustainability and life. I've worked in manufacturing, IT, project management and environmental...and enjoy unpacking complex topics in layman's terms. TSLA investor. Find more of my words on my website or follow me on Twitter for all the latest. Tesla Referral link: http://ts.la/kyle623

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Elon Musk

SpaceX Starship gets FAA nod for ninth test flight

The FAA has given the green light for Starship’s ninth test flight.

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(Credit: SpaceX)

SpaceX has received FAA approval for the ninth test flight of the Starship rocket. The approval was delayed due to the federal agency finishing its comprehensive safety review of the eighth flight earlier this year.

The FAA said in a statement that it has determined that SpaceX has “satisfactorily addressed the causes of the mishap, and therefore, the Starship vehicle can return to flight.”

The eighth test flight occurred back on March 6. SpaceX completed a successful liftoff of Starship and the Super Heavy Booster, before the two entered stage separation a few minutes after launch.

Starship Flight 8: SpaceX nails Super Heavy booster catch but loses upper stage

The booster returned and was caught by the chopsticks on the launch pad, completing the second successful booster catch in the program’s history. However, SpaceX lost contact with Starship in the upper atmosphere.

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The ship broke up and reentered the atmosphere over Florida and the Bahamas.

The debris situation caused the FAA to initiate a mishap investigation:

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The FAA said it will verify that SpaceX implements all the corrective actions on Flight 9 that it discovered during the mishap investigation.

There is no current confirmed launch window, but the earliest it could take off from Starbase is Tuesday, May 27, at 6:30 p.m. local time.

To prevent any injuries and potentially limit any damage, the FAA has stayed in contact with various countries that could be impacted if another loss of vehicle occurs:

“The FAA is in close contact and collaboration with the United Kingdom, Turks & Caicos Islands, Bahamas, Mexico, and Cuba as the agency continues to monitor SpaceX’s compliance with all public safety and other regulatory requirements.”

The agency has also stated that the Aircraft Hazard Area (AHA) is approximately 1,600 nautical miles and extends eastward from the Starbase, Texas, launch site through the Straits of Florida, including the Bahamas and Turks & Caicos.

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For flight 8, the AHA was just 885 nautical miles.

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Hyundai begins real-world testing of AI-powered EV charging robot

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Credit: Hyundai

Hyundai announced on Thursday that it has officially launched real-world testing of its AI-powered EV charging robot, which it is referring to as the ACR.

The Korean company is partnering with both Kia and Incheon International Airport for the testing phase, which was launched with a memorandum of understanding (MOU). The pilot program is going to be used to lay the groundwork for future robot use for EV charging.

Incheon already has a reputation that aligns with the pilot program as it has the largest eco-friendly vehicle infrastructure in Korea, according to Korea JoongAng Daily, which first reported the launch of the pilot program.

Hyundai is partnering with Kia’s Robotics Lab to provide hardware and software solutions for this early rollout.

Yan Hee-won, President of Hyundai Motor’s R&D Division, said:

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“This marks an important turning point in validating the practical value of future mobility technologies. With customized automatic charging solutions, we aim to deliver a more convenient and enhanced mobility experience for users.”

The testing phase will be limited in the sense that the charging robot will be deployed for a fleet of eco-friendly airport vehicles. Those who park their EVs at the airport will not be able to use it for use while they’re traveling — at least at first.

Eventually, it will become a great way to give vehicles range while the owners are off on trips.

Tesla had a similar idea several years ago, which it shared viral videos of back in 2015.

Tesla “snake charger” wasn’t just a creepy one-off, suggests Elon Musk

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Musk said in 2020 that Tesla still had the intention of making it. However, it has shifted to wireless induction charging, which seems to be a better option simply because of fewer moving parts and better compatibility with the upcoming Robotaxi fleet.

Tesla flexes Robotaxi wireless charging — autonomy from top to bottom

Tesla displayed its wireless charging idea at the “We, Robot” event last year:

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How Tesla could benefit from the ‘Big Beautiful Bill’ that axes EV subsidies

Tesla has a few paths to limit damage from the elimination of tax credits.

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President Donald J. Trump purchases a Tesla on the South Lawn, Tuesday, March 11, 2025. (Official White House Photo by Molly Riley)
President Donald J. Trump purchases a Tesla on the South Lawn, Tuesday, March 11, 2025. (Official White House Photo by Molly Riley)

The United States House of Representatives passed President Trump’s “Big Beautiful Bill” by a vote of 215 to 214 on Thursday, effectively bringing an end to many EV subsidy programs, like the $7,500 tax credit, by the end of this year.

The bill will not only eliminate the $7,500 credit on new EV purchases, but also the $4,000 credit given on the purchase of used electric vehicles, and a $1,000 credit on the installation of Level 2 chargers. It will also impact solar subsidies that help generate clean energy in a residential setting.

EVs would also be subject to a $250 road use fee.

All of these things sound like negatives — truly because they are. Those who are not in a financial position to buy an EV this year, even with the tax credit, might not be able to afford them in the coming years either, unless manufacturers are able to bring pricing to a level that is more accessible to consumers.

In theory, President Trump’s focus on bringing manufacturing back to America would bring prices down, but it won’t happen overnight. Companies will take many years to completely bring manufacturing and part sourcing to the United States.

However, Tesla could feel some positives from this bill, and it all comes down to timing. Of course, in the long term, it wouldn’t be great for the company, especially if it did not have two things going on right now: a slightly lagging delivery pace and the introduction of affordable models.

Tax Credit Sunsetting Advantage

Sunsetting the $7,500 tax credit means one thing: those who have been in limbo over buying an EV from Tesla are going to have to make a decision on whether they want to buy this year and still have access to the credit, or test their luck and hope for price reductions.

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More than likely, those who have been on the fence will be willing to pull the trigger this year, and Tesla will definitely gain some sales from this fact alone. Other automakers will, too.

This could help offset Tesla’s slow start to the year, which has been caused by the changeover of production lines of the Model Y across each of its factories globally.

Affordable Models

Tesla said earlier this year that it will roll out affordable models in the first half of 2025. These cars are expected to be around the $30,000 mark, but the company has not shed any true information on what they will cost.

Potential affordable Tesla “Model 2/Model Q” test car spotted anew in Giga Texas

Ideally, the cars would cost under $30,000 without the EV tax credit, which would be more than accessible for many car buyers in the United States.

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The introduction of models that are not in need of a tax credit to be affordable to the masses. This would help offset some of the losses Tesla might feel from cars losing the tax credit.

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