Tesla Giga Shanghai workers share concerns over planned performance bonus cuts: report

Credit: Tesla Inc.

Employees at Tesla Gigafactory Shanghai have taken to social media platforms such as Baidu to express their concerns to CEO Elon Musk and the Chinese public about allegedly planned performance bonus cuts at the facility. 

Some of the posts also criticized Tesla’s reported response to a fatal accident at the plant earlier this year, with some questioning if the planned bonus reductions were connected to the incident. 

The workers, who reportedly spoke to Reuters on condition of anonymity, noted that their supervisors had informed them that their quarterly bonus payout would be reduced. The decision is reportedly linked to the factory’s overall performance. As per the workers, the Tesla supervisors cited a “safety incident” as the reason for the bonus cut. 

Several online posts alleged that Tesla’s Shanghai plant workers were being unfairly penalized for the February accident, which resulted in a fatality at the plant. A local Pudong government report–published earlier this month–revealed that an accident in the welding workshop at Giga Shanghai led to the worker’s death.

An investigation determined that the deceased worker was directly responsible for the unfortunate incident, though Reuters also noted that an oversight in Tesla’s safety management was indirectly related to the accident. A number of reported Giga Shanghai employees claimed in social media posts that their quarterly bonuses had been cut by around 2,000 yuan (about $291). 

Base salaries at Tesla Giga Shanghai indicate that workers can earn around 110,000-120,000 yuan ($16,000 to $17,400) per year before tax, as per a recruitment post listed on the Lingang Group’s official WeChat account. This is comparable to other international and Chinese manufacturers in the region. 

Tesla and Elon Musk did not immediately respond to requests for comment. 

Tesla is expected to report its first-quarter results on Wednesday. Investors and analysts will be eagerly watching how the company’s recent price reductions on its electric vehicles have affected its industry-leading margins. Tesla CFO Zach Kirkhorn has also stated that the company expected to maintain a 20% gross margin on its electric vehicle business.

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Tesla Giga Shanghai workers share concerns over planned performance bonus cuts: report
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