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UAW strikes shut down auto plants as negotiations continue

(Credit: UAW)

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Ford, General Motors (GM) and Stellantis face continued negotiations with the United Auto Workers (UAW) union after around 13,000 workers shut down three manufacturing plants when previous contracts expired on Thursday.

The shutdowns could be costly for the so-called “Big 3” automakers if union demands are not met. Some say electric vehicle (EV) market leader Tesla could be set to win big from the damage amidst the Big 3’s attempts to transition to EVs.

UAW workers shut down the Ford Michigan Assembly Plant’s Final Assembly and Paint facilities, as detailed in a Detroit Free Press report on Sunday morning. The strikes also shut down the Stellantis Toledo Assembly Complex in Ohio and GM’s Assembly plant in Wentzville, Missouri.

Following the walkouts, Ford CEO Jim Farley warned that the UAW’s demands could force bankruptcy, and the automaker also laid off 600 employees at its Michigan plant. GM says it plans to lay off around 2,000 workers at its Fairfax Assembly facility in Kansas City, Kansas this week due to an inability to get parts from the Wentzville plant, inevitably causing a production halt.

Tesla would be the big winner in potential UAW strike

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While the UAW initially proposed a 40-percent wage increase over four years, based on compensation increases the automakers’ CEOs have received, the union lowered its demands to a 36-percent increase last week.

Still, negotiations remain far off. Ford and GM most recently offered 20-percent wage increases over the period, while Stellantis offered 21 percent.

In addition to wage increases over the four-year period, the UAW is demanding the automakers restore cost-of-living allowances (COLA) lost in a 2007 union contract, which are expected to help stave off the effects of inflation.

Demands also include moving to a 32-hour work week while retaining the pay for a 40-hour work week, the restoration of defined benefit pensions, increased paid time off, limited use of temporary workers, and reducing the time it takes for employees to make top wages.

UAW President Shawn Fain has used the wage demands as a comparison between worker and CEO pay increases. The UAW initially created the 40-percent wage increase figure based on compensation increases for the automakers’ CEOs since 2019. According to Fain, workers have only gained 6-percent wage increases during that time.

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According to a breakdown from AP News in a Sunday morning report, median worker pay in 2022 was highest at GM at $80,034. In the same year, median worker pay at Ford and Stellantis landed at $74,691 and 64,328 euros (~$68,660), respectively.

AP News also reports that GM CEO Mary Barra is the highest-paid of the three executives, with her 2022 compensation package paying out $28.98 million. Her pay has increased by roughly 34 percent since 2019, according to an analysis by Equilar from public data filings.

Following her was Farley, who was paid almost $21 million by Ford through his compensation package in 2022, marking a 25 percent jump from former CEO William Clay Ford’s pay in 2019.

Stellantis is a European company, so the way its executive pay is made public differs slightly from GM or Ford’s. CEO Carlos Tavares was paid roughly 23.46 million euros ($25.04 million) in 2022, according to the automaker’s annual remuneration report. However, this figure includes “realized pay,” detailing previously granted equity values that vested the same year as reports are made.

Instead of using this figure, Equilar utilized a similar “grant date” method to make the comparisons more accurate. By this method, Equilar found Tavares’ compensation to be roughly 21.95 million euros ($23.43 million) last year, marking a 24-percent drop from former CEO Mike Manley’s 2019 compensation package of 29.04 million euros ($31 million).

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Many CEOs get most of their compensation from stock options or other non-salary payment methods.

In 2022, the biggest payout in Barra’s compensation package was $14.62 million in stock grants, vested over three years. During the same year, Farley received $15.14 million in stock awards, which have a similar three-year vesting period with the final value being tied to performance.

Negotiations between the automakers and the UAW are expected to continue this week.

Amidst the strikes, EV manufacturer Tesla is set to launch deliveries of its Cybertruck and Model 3 Highland, and the automaker is also initiating a $1.8 billion lease securitization to gain additional funding.

Tesla prepares for $1.8 billion lease securitization: report

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What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send your tips to us 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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Elon Musk

Elon Musk is now a remote DOGE worker: White House Chief of Staff

The Tesla and SpaceX CEO Elon Musk is no longer working from the West Wing.

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Credit: Elon Musk/X

In a conversation with the New York Post, White House Chief of Staff Susie Wiles stated that Tesla and SpaceX CEO Elon Musk is no longer working from the West Wing.

As per the Chief of Staff, Musk is still working for DOGE—as a remote worker, at least.

Remote Musk

In her conversation with the publication, Wiles stated that she still talks with Musk. And while the CEO is now working remotely, his contributions still have the same net effect. 

“Instead of meeting with him in person, I’m talking to him on the phone, but it’s the same net effect,” Wiles stated, adding that “it really doesn’t matter much” that the CEO “hasn’t been here physically.” She also noted that Musk’s team will not be leaving.

“He’s not out of it altogether. He’s just not physically present as much as he was. The people that are doing this work are here doing good things and paying attention to the details. He’ll be stepping back a little, but he’s certainly not abandoning it. And his people are definitely not,” Wiles stated.

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Back to Tesla

Musk has been a frequent presence in the White House during the Trump administration’s first 100 days in office. But during the Q1 2025 Tesla earnings call, Musk stated that he would be spending substantially less time with DOGE and substantially more time with Tesla. Musk did emphasize, however, that DOGE’s work is extremely valuable and critical.

“I think I’ll continue to spend a day or two per week on government matters for as long as the President would like me to do so and as long as it is useful. But starting next month, I’ll be allocating probably more of my time to Tesla and now that the major work of establishing the Department of Government Efficiency is done,” Musk stated.

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Elon Musk

Tariff reprieve might be ‘Tesla-friendly,’ but it’s also an encouragement to others

Tesla stands to benefit from the tariff reprieve, but it has some work cut out for it as well.

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tesla employee
(Photo: Tesla)

After Secretary of Commerce Howard Lutnick made adjustments to the automotive tariff program that was initially announced, many quickly pointed to the reprieve as “Tesla-friendly.”

While that may be the case right now, it was also a nudge of encouragement to other companies, Tesla included, to source parts from the U.S. in an effort to strengthen domestic manufacturing. Many companies are close, and it will only take a handful of improvements to save themselves from tariffs on their cars as well.

Yesterday, Sec. Lutnick confirmed that cars manufactured with at least 85 percent of domestic content will face zero tariffs. Additionally, U.S. automakers would receive credit up to 15 percent of the value of vehicles to offset the cost of imported parts.

Big Tesla win? Sec Lutnick says cars with 85% domestic content will face zero tariffs

“This is ‘finish your cars in America and you win’,” Lutnick said.

Many were quick to point out that only three vehicles currently qualify for this zero-tariff threshold: all three are Teslas.

However, according to Kelley Blue Book’s most recent study that revealed who makes the most American cars, there are a lot of vehicles that are extremely close to also qualifying for these tariff reductions.

Tesla has three vehicles that are within five percent, while Ford, Honda, Jeep, Chevrolet, GMC, and Volkswagen have many within just ten percent of the threshold.

Tesla completely dominates Kogod School’s 2024 Made in America Auto Index

It is within reach for many.

Right now, it is easy to see why some people might think this is a benefit for Tesla and Tesla only.

But it’s not, because Tesla has its Cybertruck, Model S, and Model X just a few percentage points outside of that 85 percent cutoff. They, too, will feel the effects of the broader strategy that the Trump administration is using to prioritize domestic manufacturing and employment. More building in America means more jobs for Americans.

Credit: Tesla

However, other companies that are very close to the 85 percent cutoff are only a few components away from also saving themselves the hassle of the tariffs.

Ford has the following vehicles within just five percent of the 85 percent threshold:

  • Ford Mustang GT automatic (80%)
  • Ford Mustang GT 5.0 (80%)
  • Ford Mustang GT Coupe Premium (80%)

Honda has several within ten percent:

  • Honda Passport All-Wheel-Drive (76.5%)
  • Honda Passport Trailsport (76.5)

Jeep has two cars:

  • Jeep Wrangler Rubicon (76%)
  • Jeep Wrangler Sahara (76%)

Volkswagen has one with the ID.4 AWD 82-kWh (75.5%). GMC has two at 75.5% with the Canyon AT4 Crew Cab 4WD and the Canyon Denali Crew Cab 4WD.

Chevrolet has several:

  • Chevrolet Colorado 2.7-liter (75.5%)
  • Chevrolet Colorado LT Crew Cab 2WD 2.7-liter (75.5%)
  • Chevrolet Colorado Z71 Crew Cab 4WD 2.7-liter (75.5%)

These companies are close to reaching the 85% threshold, but adjustments need to be made to work toward that number.

Anything from seats to fabric to glass can be swapped out for American-made products, making these cars more domestically sourced and thus qualifying them for the zero-tariff boundary.

Frank DuBois of American University said that manufacturers like to see stability in their relationships with suppliers and major trade partners. He said that Trump’s tariff plan could cause “a period of real instability,” but it will only be temporary.

Now is the time to push American manufacturing forward, solidifying a future with more U.S.-made vehicles and creating more domestic jobs. Tesla will also need to scramble to make adjustments to its vehicles that are below 85%.

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Tesla Cybertruck RWD production in full swing at Giga Texas

Videos of several freshly produced Cybertruck LR RWD units were shared on social media platform X.

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Credit: Joe Tegtmeyer/X

It appears that Tesla is indeed ramping the production of the Cybertruck Long Range Rear Wheel Drive (LR RWD), the most affordable variant of the brutalist all-electric pickup truck.

Videos of several freshly produced Cybertruck LR RWD units were shared on social media platform X.

Giga Texas Footage

As per longtime Tesla watcher Joe Tegtmeyer, Giga, Texas, was a hotbed of activity when he conducted his recent drone flyover. Apart from what seemed to be Cybercab castings being gathered in the complex, a good number of Cybertruck LR RWD units could also be seen in the facility’s staging area. The Cybertruck LR RWD units are quite easy to spot since they are not equipped with the motorized tonneau cover that is standard on the Cybertruck AWD and Cyberbeast.

The presence of the Cybertruck LR RWD units in Giga Texas’ staging area suggests that Tesla is ramping the production of the base all-electric pickup truck. This bodes well for the vehicle, which is still premium priced despite missing a good number of features that are standard in the Cybertruck AWD and Cyberbeast.

Cybertruck Long Range RWD Specs

The Cybertruck LR RWD is priced at $69,990 before incentives, making it $10,000 more affordable than the Cybertruck AWD. For its price, the Cybertruck Long Range RWD offers a range of 350 miles per charge if equipped with its 18” standard Wheels. It can also add up to 147 miles of range in 15 minutes using a Tesla Supercharger.

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Much of the cost-cutting measures taken by Tesla are evident in the cabin of the Cybertruck LR RWD. This could be seen in its textile seats, standard console, seven-speaker audio system with no active noise cancellation, and lack of a 9.4” second-row display. It is also missing the motorized tonneau cover, the 2x 120V and 1x 240V power outlets on the bed, and the 2x 120V power outlets in the cabin. It is also equipped with an adaptive coil spring suspension instead of the adaptive air suspension in the Cybertruck AWD and Cyberbeast.

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