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Tesla pokes holes in Mercury’s story; it’s $55/hr pay rate not $5

The president of Eisenmann Corp has responded to an article last Sunday in the San Jose Mercury about a foreign workers being paid $5 an hour or less. claiming it was not involved in any wrongdoing.

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10 years ago

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Over the weekend, the San Jose Mercury ran a story about a foreign worker who was injured while working on improvements to the paint shop at the Tesla factory in Fremont. The story alleged that some of those workers were paid as little as $5.00 an hour. Not so says Mark West president of Eisenmann the German-based manufacturer of industrial systems that won the contract to build Tesla’s high-volume paint shop

In a letter to Tesla dated May 17, West states that Vuzem the subcontractor who employed the foreign worker agreed to a $55 per hour base rate “for additional services” (and it goes on to reference an attachment). “This rate gave ISM Vuzem full opportunity to pay its workers appropriately,” West says in his letter.

West also says that his company was not involved in any visa violations. The Mercury story alleged that Robert Miller, Eisenman’s purchasing manager in Chicago, told INS in a letter that Lesnik was a “supervisor of electrical and mechanical installation. His assignment will involve multiple border entries but in no way adversely affect the employment of citizens of the United States.” There is clearly a discrepancy between West’s representations and what was reported in the Mercury article.

West goes on to say that Eisenmann requires compliance with all “permits, fees, notices, and compliance with laws” in all its contracts, and that it is “committed tor our employees and business partners to offering fair and appropriate working conditions and salaries.” The letter concludes by saying Eisenmann is revising its procedures relating to how its suppliers deal with labor regulations and obligations, and promises “our comprehensive commitment and cooperation.”

The import of the letter is that Tesla paid Vuzem full value for each employee, including benefits and extras. The open question is whether Vuzem improperly diverted some of those payments to its own account rather than paying them to its employees. In his letter, West claimed “ISM Vuzem has been a long term supplier to Eisenmann. We have been working with ISM Vuzem because of their proven record of consistently excellent work in conjunction with our proprietary equipment. As an experienced and reliable partner on global projects, we engaged ISM Vuzem for the Tesla project.”

After receiving the letter from Eisenmann, Elon Musk tweeted:

There are still discrepancies to be resolved, but it now appears that Tesla Motors did not gain any advantage in this transaction and that if there was wrong doing, it occurred without Tesla’s knowledge or participation.

 

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Tesla Model Y L’s new features flexed at unveiling event at Diner

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July 31, 2026

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Tesla Model Y L in a field
Credit: Tesla

Tesla flexed the new features of the Model Y L with a dedicated media event at the company’s Diner on Santa Monica Boulevard in Los Angeles.

The Model Y L is the extended-wheelbase version of the all-electric crossover, which has been voted the best-selling car in the world on three occasions. The vehicle is already rolling off production lines at Gigafactory Texas, and first deliveries are slated to take place later this year.

Tesla brings Model Y L ‘Launch Series’ to the U.S. at $61,990

Teslarati was invited to the event, but due to some scheduling conflicts, we could not make it to Los Angeles. Instead, we will have our hands on a media unit sometime in August, so we’ll be able to spend some more extended time with the Model Y L.

However, plenty of those who made it to LA shared some cool features that set the Model Y L apart from the Model Y.

Multi-Row Climate Control

Tesla fitted the Model Y L with full climate control on all three rows on the front screen. It can be adjusted by selecting which row you’d like to modify on the right-hand side of the touch screen:

Better Rear Window Visibility

One of the strangest things about the Model Y, especially the Juniper iteration, is the rear window has extremely limited visibility when looking into the rearview mirror.

Tesla has improved upon this with the Model Y L:

PowerShare will be included

Model Y L will come with PowerShare in North America, with an 11.5kW output to your home. Tesla said it would require Powerwall 3 for operation.

Wireless Charging Pad

There has been some speculation that Tesla would upgrade the wireless charging pads in the United States, but this is not the case.

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Tesla owner fixes common feature complaint with crafty DIY retrofit

Tesla confirmed that it does not come with the cooled pads as the Y L in China does. This is because North America has not adopted Qi charging yet.

Thermal Management Improvements

These improvements in the Model Y L were seen with thermal management:

  • Up to 15% faster cabin cooling
  • +23% thermal efficiency gained in hot weather, 7 miles of real-world range gained
  • 8x more solar energy reflection off of glass roof
  • 30% reduction in solar energy entering the cabin

Demand

Tesla said the Model Y L is almost sold out in the U.S. It comes with

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  • 1 year of FSD Supervised
  • 1 year of Supercharging
  • 1 year of Premium Connectivity
  • Free exterior paint color, interior, and wheel option at no additional cost
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Tesla CEO Elon Musk denies ridiculous Gigafactory Shanghai rumor

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4 hours ago

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July 31, 2026

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(Credit: Tesla)

Tesla CEO Elon Musk took to his social media platform X on Thursday night to deny a ridiculous rumor regarding the sale of the company’s Chinese vehicle production plant, Gigafactory Shanghai.

On Thursday, the Wall Street Journal, citing sources familiar with the matter, claimed in a scathing new report that Tesla was exploring a potential sale of the entire China business in an effort to help bolster a potential merger between SpaceX and Tesla.

Musk immediately denied the rumor not once but twice, initially calling it “fake news,” and then calling it “absurdly fake news” in a separate post just a few moments later:

The original poster of the Wall Street Journal article that Musk saw deleted the initial post sharing the headline and the rumored sale of Tesla’s China business.

The report seemed absolutely and unequivocally false to begin with; Tesla’s business in China is among the most important pieces of the company’s business. Not only does the factory supply vehicles for the domestic market, but also for various other markets in Asia and Europe.

China is also one of the largest automotive markets in the world, and Tesla has performed well there despite the robust competition.

The speculation regarding a Tesla and SpaceX merger has started to gain steam this year as the space exploration company went public just a month ago. There has been speculation that Musk will bridge all of his companies under one “umbrella company,” and analysts believe this could happen before the end of the decade.

The Tesla and SpaceX merger everyone is talking about is quietly building

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This is the latest iteration of Musk’s very evident war on mainstream media. Reports regarding any of Musk’s companies are quick to get the dreaded “false” or “fake news” response from the CEO when they are unfounded.

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Tesla AI boss reveals how big Optimus is going to get

Tesla’s Optimus chief corrected himself on X, confirming a staggering 10 million robot production target.

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11 hours ago

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July 31, 2026

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Tesla Optimus Gen 3 [Credit: Tesla]

Tesla’s Optimus program has a new number attached to it, after Ashok Elluswamy, the executive who has run the humanoid robot program since June 2025, posted a three word correction on X Thursday, “Correction, 10 million robots.”

The line clarifies the long term annual capacity Tesla is building toward its planned second Optimus production line at Gigafactory Texas, a figure Musk has cited repeatedly since last year’s shareholder meeting.

The scale is worth noting, because ten million robots a year would mean Tesla building more units annually than most countries sell in new cars. Tesla has framed this as a second line, not the first. The buildout is happening in two phases: a roughly one million unit per year line inside Tesla’s Fremont factory, installed on the floor space vacated when Model S and Model X production ended earlier this year, and a much larger dedicated facility under construction at Giga Texas that broke ground on its first steel structure in May. That Texas facility is the one Elluswamy’s correction refers to, and is expected to reach volume production sometime in 2027.

Tesla Optimus project fires up as Musk sees production line progress

Elluswamy took over Optimus from Milan Kovac last summer and has spent the months since talking up the program’s trajectory. Elon Musk has also floated the ten million figure at Tesla’s 2025 shareholder meeting.

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Ending Model S and Model X production to make room for the first Optimus line was one of the more consequential manufacturing decisions in the company’s recent history, retiring two flagship vehicles in favor of a robot that has yet to enter mass production. Musk has previously estimated per unit production costs at $20,000 to $25,000 once Tesla reaches a million units a year, though he hasn’t said what that cost looks like at ten times the volume.

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