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Tesla’s ghost hangs over UAW’s ongoing strike

Credit: Tesla Asia/Twitter

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Detroit’s Big Three is in chaos. An ongoing UAW strike does not seem to be ending anytime soon, and the union’s leader, Shawn Fain, is proving resolute in the group’s demands. Interestingly enough, one of the apparent reasons behind the UAW’s historic strike is a company that is not even part of the protest — Tesla. 

It would not be an exaggeration to state that Tesla and its rapid rise toward the top of the list of the world’s most valuable carmakers set the UAW’s ongoing strike in motion. Tesla fought through the odds and came near death several times over the years, but its innovations and the runaway success of its vehicles like the Model 3 sedan and Model Y crossover have turned the automotive industry on its head.

One of these innovations is the use of gigacastings, a technique that is now finding adoption among a growing number of veteran automakers. Tesla’s Silicon Valley-style approach to its vehicles has also ushered in an age of cars that are capable of being updated over the air. As noted in a WIRED report, the auto sector’s wishes to compete with Tesla in the growing EV sector has resulted in companies, such as the Detroit Big Three, restructuring their operations. 

For unions like the UAW, the emergence of electric cars, which are produced with fewer parts and more automation, is a risky scenario for traditional auto workers. Mark Barrott, an automotive analyst at the Michigan-based consultancy Plante Moran, noted that the UAW strike today is not just about pay and benefits; it is also about the electric vehicle sector. “This strike is about electrification,” he said. 

Fain, for his part, has noted that auto workers deserve their fair share even as the age of electric vehicles comes. “Workers deserve their share of equity in this economy,” the UAW president said.

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Tesla is not perfect, and its CEO, Elon Musk, has developed a reputation for perenially missing his self-imposed deadlines. This could be seen in the EV maker’s robotaxi program, which is notably delayed. Despite this, Marick Masters, who studies labor and workplace issues at Wayne State University’s School of Business, noted that Tesla has become disruptive enough to leave veteran automakers like Ford, GM, and Stellantis, in a “quest for capital.” 

Thus, while the Detroit Big Three made $250 billion in profits in the past decade, the rapid growth of companies like Tesla may be pushing veteran automakers to save every cent possible to make sure they can stay afloat in the age of electric cars. And here, ultimately, lies the UAW’s problem. “They have little money to concede for union demands,” Masters said. 

Fain, for his part, is not buying it. “Competition is a code word for race to the bottom, and I’m not concerned about Elon Musk building more rocket ships so he can fly into outer space and stuff,” he said. 

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads-up.

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Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

Elon Musk

Norway’s $2 trillion sovereign wealth fund votes against Elon Musk’s 2025 performance award

The fund is managed by Norges Bank Investment Management (NBIM), and it holds a 1.14% stake in Tesla valued at about $11.6 billion.

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MINISTÉRIO DAS COMUNICAÇÕES, CC BY 2.0 , via Wikimedia Commons

Norway’s $2 trillion sovereign wealth fund has voted against Elon Musk’s 2025 performance award, which will be ultimately decided at Tesla’s upcoming annual shareholder meeting. 

The fund is managed by Norges Bank Investment Management (NBIM), and it holds a 1.14% stake in Tesla valued at about $11.6 billion.

NBIM’s opposition

NBIM confirmed it had already cast its vote against Musk’s pay package, citing concerns over its total size, dilution, and lack of mitigation of key person risk, as noted in a CNBC report. The fund acknowledged Musk’s leadership of the EV maker, and it stated that it will continue to seek dialogue with Tesla about its concerns. 

“While we appreciate the significant value created under Mr. Musk’s visionary role, we are concerned about the total size of the award, dilution, and lack of mitigation of key person risk- consistent with our views on executive compensation. We will continue to seek constructive dialogue with Tesla on this and other topics,” NBIM noted.

The upcoming Tesla annual shareholder meeting will decide whether Musk should receive his proposed 2025 performance award, which would grant him large stock options over the next decade if Tesla hits several ambitious milestones, such as a market cap of $8.5 trillion. The 2025 performance award will also increase Musk’s stake in Tesla to 25%.

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Elon Musk and NBIM

Elon Musk’s proposed 2025 CEO performance award has proven polarizing, with large investors split on whether the executive should be given a pay package that, if fully completed, would make him a trillionaire. 

Institutional Shareholder Services and Glass Lewis have recommended that shareholders vote against the deal, and initiatives such as the “Take Back Tesla” campaign have rallied investors to oppose the proposed performance award. On the other hand, other large investors such as ARK Invest and the State Board of Administration of Florida (SBA) have urged shareholders to approve the compensation plan. 

Interestingly enough, this is not the first time that Musk and NBIM have found themselves on opposing sides. Last year, NBIM voted against reinstating Musk’s 2018 performance award, which had already been fully accomplished but was rescinded by a Delaware judge.

Later reports shared text messages between Musk and NBIM Chief Executive Nicolai Tangen, who was inviting the CEO to a dinner in Oslo. Musk declined the invitation, writing, “When I ask you for a favor, which I very rarely do, and you decline, then you should not ask me for one until you’ve done something to make amends. Friends are as friends do.”

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Elon Musk

Tesla begins production of new Model Y trim at Giga Berlin

Tesla announced on Monday that its Model Y Standard configuration was officially being built at Giga Berlin, less than one month after the company officially announced the configuration early last month.

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Credit: Tesla

Tesla has begun production of the new Model Y trim at Gigafactory Berlin, the company’s production plant in Germany.

Tesla announced on Monday that its Model Y Standard configuration was officially being built at Giga Berlin, less than one month after the company officially announced the configuration early last month.

On October 7, Tesla announced the launch of the Model 3 and Model Y Standard trim levels, its answer to the call for affordable EVs within its lineup and its response to the loss of the $7,500 electric vehicle tax credit.

On October 3, Tesla started production of the vehicles in Germany:

The Standard iteration of the Model Y is void of many of the more premium features that are available in the Rear-Wheel-Drive, All-Wheel-Drive, and Performance trims of the vehicle are equipped with.

A few of the features of the Model Y Standard are:

  • Single Motor configuration
  • No rear touchscreen
  • Textile seats with vegan leather, instead of all vegan leather
  • 320-mile range
  • No glass roof

The launch of the Model Y Standard was truly a move to help Tesla get vehicles into the sub-$40,000 price point, and although many consumers were hoping to see the company get closer to $30,000 with these cars, this is a great starting point.

Deliveries in the United States have already started, and it seems it will be a vehicle that will do one of two things: either push some consumers to finally make the jump to Tesla, or it will give car buyers another reason to buy the Premium trims, as they may feel the lack of features is not a good enough deal.

This is something we saw with the Cybertruck’s Rear-Wheel-Drive configuration, which launched last year and ended up being more of the latter option listed above.

The Tesla Model Y Standard is actually a great deal in Europe

It was only a $10,000 discount from the All-Wheel-Drive Cybertruck, but it also did not have adaptive air suspension, premium interiors, or the powered tonneau cover, which many people felt was too much of a sacrifice.

The Rear-Wheel-Drive Cybertruck was discontinued only a few months later.

It does not seem as if this is the case with the Model Y Standard, which already seems to be an attractive option to some buyers.

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Cybertruck

Tesla begins wide rollout of Full Self-Driving v14 to Cybertruck

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Credit: Weibo (via YYDS on X)

Tesla has officially begun the wide rollout of Full Self-Driving (Supervised) v14 to the Cybertruck about a month after the company started rolling it out to other vehicles in the fleet.

On Monday, Tesla officially started rolling out v14.1.5 to Cybertruck owners, the first FSD v14 rollout for owners of the all-electric pickup.

Owners have been anxiously waiting for Tesla to begin the wide release of v14 to Cybertruck, as the company said it would refine the suite for the vehicle.

Tesla has finally started rolling out to many owners, who are reporting that their Cybertrucks are downloading Software Update 2025.38.8.5, which contains FSD v14.1.5:

Tesla has to be more cautious with rolling out FSD on the Cybertruck than on other vehicles for a few reasons. Initially, the Cybertruck utilizes an all-wheel steering system that turns differently than the S3XY lineup. This creates a challenge for the Tesla AI team as they have to cater to this specific maneuvering change.

Additionally, the Cybertruck is much larger, and the exterior cameras responsible for seeing the vehicle’s surroundings are placed differently than those of the other vehicles.

This requires additional calibration to ensure safety.

The full release notes for Full Self-Driving v14.1.5 are as follows:

  • Added Arrival Options for you to select where FSD should park: in a Parking Lot, on the Street, in a Driveway, in a Parking Garage, or at the Curbside.
  • Added handling to pull over or yield for emergency vehicles (e.g. police cars, fire trucks, ambulances).
  • Added navigation and routing into the vision-based neural network for real-time handling of blocked roads and detours.
  • Added additional Speed Profile to further customize driving style preference.
  • Improved handling for static and dynamic gates.
  • Improved offsetting for road debris (e.g. tires, tree branches, boxes).
  • Improve handling of several scenarios including: unprotected turns, lane changes, vehicle cut-ins, and school buses.
  • Improved FSD’s ability to manage system faults and recover smoothly from degraded operation for enhanced reliability.
  • Added alerting for residue build-up on interior windshield that may impact front camera visibility. If affected, visit Service for cleaning!

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