Tesla has announced that it will raise factory worker pay for some workers at its Nevada Gigafactory by 10% or more. The news comes not long after UAW’s historic strike wins, in which it earned 25% pay increases at all of the Big Three American automakers.
After VW, Hyundai, Toyota, and Honda did the same recently, this shows how union wins tend to affect entire industries, raising conditions for even nonunionized companies who have to compete for workers.
CNBC reported that Tesla internal documents confirmed that workers at the Gigafactory will receive “cost of living adjustments” of between $2.00 and $8.30 per hour, with raises of 10% or more for most hourly workers at the plant. It will also “streamline” wage tiers and reduce the differences in pay between them.
These are two major points of the UAW negotiation, which not only sought raises but also cost-of-living adjustments (which UAW gave up as part of negotiations after the 2008 financial crisis and only just got back in this year’s negotiations) and the elimination or reduction of tiered pay structures. CNBC’s report doesn’t state whether Tesla’s timelines have been made shorter, but the wage progressions will be compressed to have fewer tiers.
Tesla is currently in the sights of UAW as a potential target for unionization. But UAW is not the only union targeting Tesla. The automaker is currently facing a strike from workers in Sweden as the nation’s largest industrial union, IF Metall, wants Tesla to sign a collective bargaining agreement (an agreement the likes of which 90% of Swedish workers are covered). This strike has been gradually expanding via sympathy strikes over time.
The new pay raises will take effect starting January 2024, just two weeks from now.
Other companies have also raised pay
Tesla’s raises aren’t the only similar recent announcement from a nonunionized company.
Last month, Volkswagen of America announced that it would increase wages in a press release. It was pretty light on details but said that the wage increase would start in December and that a compressed wage progression timeline would begin in February.
Volkswagen of America annually evaluates compensation for our production team members at the end of the year to ensure we continue to offer a competitive and robust compensation package designed to attract and motivate employees who make our daily operations possible at the plant.
Prior to that, Hyundai announced a 25% pay increase for nonunionized workers by 2028, matching the headline 25% gain that UAW won in its negotiations. Hyundai COO Jose Munoz said, “Hyundai continuously strives to maintain competitive wages and benefits commensurate to industry peers.”
Also, Honda raised the wages of some workers by 11%, along with a faster progression to the top of the wage scale and additional benefits like child care and student loan help. Honda said it “continuously reviews our total rewards packages to ensure we remain competitive within our industry.” The company also said, “We will continue to look for opportunities to ensure that we provide an excellent employment experience for Honda associates.”
And Toyota took the opportunity to hike the pay of most of its US assembly workers by 9.2% immediately after the UAW deals were announced. After Toyota’s pay hike, UAW President Shawn Fain recognized that it was a response to his union’s new contract, saying, “Toyota, if they were doing it out of the kindness of their heart, they could have chosen to do it a year ago.”
The “UAW Bump”
Fain called these wage increases “the UAW bump” and said, “UAW, that stands for ‘U Are Welcome.’”
UAW wants to maintain this momentum and has openly stated that it wants to unionize more nonunionized companies in the US. In UAW’s original strike victory announcement, Fain said that it plans to come back to the bargaining table in 2028 on May 1, otherwise known as May Day or International Workers’ Day, but that time, it “won’t just be with a Big Three, but with a Big Five or Big Six.”
At the time, he didn’t specify who exactly those extra two or three companies would be, but later, we found out when UAW launched a campaign to unionize the entire auto industry at once. So perhaps UAW is aiming for even more than a Big Five or Big Six at this point.
Much of union popularity has been driven by COVID-related disruptions across the economy, with workers becoming unsatisfied due to mistreatment (labeling everyone “essential,” companies ending work-from-home) and with the labor market getting tighter with over 1 million Americans dead from the virus and another 2-4 million (and counting) out of work due to long COVID.
Unions have seized on this dissatisfaction to build momentum in the labor movement, with unions striking successfully across many industries and organizers starting to organize workforces that had previously been nonunion.
Announcements like these show how high union membership has a tendency to improve working conditions for every worker and why the US has had gradually lower pay and worse conditions over the decades since union membership peaked. It’s really not hard to see the influence when you plot these trends against each other.
It’s quite clear that lower union membership has resulted in lower inflation-adjusted compensation for workers, even as productivity has skyrocketed. As workers have produced more and more value for their companies, those earnings have gone more and more to their bosses rather than to the workers who produce that value. And it all began in the 80s, around the time of Reagan – a timeline that should be familiar to those who study social ills in America.
Conversely, these raises show the impact that unionized workers can have, not only for their own shops but for nonunionized workplaces as well. If workers gain a big pay increase in one part of an industry, all of a sudden, workers at other companies might start thinking they want to jump ship, maybe move over to another company where they can get better pay or better conditions. To retain workers, companies then need to raise wages.
In addition, nonunionized companies may want to keep their employees nonunionized and thus see the pay raises as a way to satiate their employees into maintaining the status quo. If workers at Toyota see that UAW workers are getting huge pay increases and lots of additional benefits, maybe they’ll think that UAW can bring them the same benefits and start talking about unionizing.
Companies generally think they should avoid having a unionized workforce because a unionized workforce means more pay for workers, which to them means less pay for the executives and shareholders making the decisions. So they’ll offer whatever carrots they can to keep workers from organizing to have their voices heard collectively. Individually, workers have little influence over what their pay and conditions should be.
All of this isn’t just true in the US but also internationally. If you look at other countries with high levels of labor organization, they tend to have more fair wealth distribution across the economy and more ability for workers to get their fair share.
We’re seeing this in Sweden right now, as Tesla workers are striking for better conditions. Since Sweden has a 90% collective bargaining coverage, it tends to have a happy and well-paid workforce, and it seems clear that these two things are correlated. And while that strike is continuing, meaning we haven’t yet seen the effects of it, most observers think that the workers will eventually get what they want since collective bargaining is so strong in that country.
These are all reasons why, as I’ve mentioned in many of these UAW-related articles, I’m pro-union. And I think everyone should be – it only makes sense that people should have their interests collectively represented and that people should be able to join together to support each other and exercise their power collectively instead of individually.
This is precisely what companies do with industry organizations, lobby organizations, chambers of commerce, and so on. And it’s what people do when sorting themselves into local, state, or national governments. So naturally, workers should do the same. It’s just fair.
And it’s clear that it helps – so even if you aren’t unionized yourself or have a job that doesn’t lend well to unionization, you should probably be happy about other union efforts since they tend to buoy entire economies for the people who are creating the value in the first place – the workers.
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America’s heartland is full of rural communities that are miles away from its major cities, both geographically and culturally – but that doesn’t mean these more sparsely populated regions can’t reap the benefits of electrification. In fact, EVs offer rural drivers even more benefits than they do to city-dwellers!
“An electric lifestyle would be a boon to our rural heartland,” wrote the Union of Concerned Scientists’ Maria Cecilia Pinto de Moura. “Rural communities across the country have their own distinguishing characteristics, but certain shared characteristics such as driving distances, the type of vehicles driven, and socio-economics are factors which contribute to this larger potential to benefit from vehicle electrification.”
Pinto de Moura went on to outline five ways rural and country drivers could benefit from going electric – but that was in 2021, and a whole lot has changed in the nearly five years since.
As such, I thought it was high time we revisit some of the reasons EVs could be a great fit for rural lifestyles, see if we could uncover any new ones, and outline the reasons we think rural drivers should rush to embrace electric vehicles in the coming calendar year.
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1. More miles means more savings
David Blenkle’s 252,000 mile Mustang Mach-E; via Ford.
When you hear that line about, “the average American drives 30 to 40 miles a day,” remember that in towns like Wellington, Ohio, or Colfax, Washington, 30 miles is a grocery run. Each way. So when people trot out that old line about range anxiety, what rural drivers actually hear isn’t reassurance. It’s dismissal — a suggestion that they drive too far for an EV to work, when nothing could be further from the truth.
A recent study by Rural Climate Partnership found that rural drivers spend an average of 44% more on fuel than city dwellers, and that the top 3.6% of rural drivers — the “supermilers” who rack up the most miles — could save over $4,000 each year by switching to electric fuel.
2. Electric trucks have arrived
Sierra AT4 EV towing a boat; via GM.
Country guys and gals love their pickups, and arguably the single biggest difference between the EV markets of 2021 and 2025 is the proliferation of electric trucks and SUVs ready to help haul, chore, camp, and tow.
Why not save your expensive horses from breathing in gas and diesel exhaust. Haul ’em with your quiet new EV, instead!
Unlike many apartment-dwelling urban drivers, most rural owners can charge right at home. More than 80% of rural households have a driveway or garage that are ideal for overnight Level 2 charging, and many already have a 240V outlet, keeping setup costs (if there even are any) to a minimum.
Plug in before bed, wake up to a full battery every morning, and do it for pennies on the dollar, especially with off-peak rates.
4. Lifesaving battery power
F-150 Lightning plugged in; via Ford.
If disaster strikes and you lose power, many electric trucks have the ability to power your home and appliances with the energy stored in their massive batteries – either from the truck itself, or through a V2X home battery system. If you live in an area prone to extreme weather events, the ability to keep medication refrigerated can be a literal life-saver!
As such, getting behind the wheel of an ultra-powerful, ultra smooth-running electric pickup truck from your favorite brand is easier than ever.
6. Energy independence and American jobs
GM Defense electric military vehicle; via GM.
At the risk of sounding like a paranoid red hat, rural Americans are proud Americans – just like rural Canadians are proud Canadians. Unfortunately, every gallon of gas burned in their pickups and SUVs came from oil drilled, refined, and traded on global markets — and that means supporting the oil business and economies of nations whose values don’t always align with, or maybe are even outright hostile to theirs.
Switching to an EV can help more of that money right here at home, especially as more and better battery recycling efforts come online and newer battery and anode/cathode chemistries are developed, reducing dependence on rare Earth metals, cobalt, and even lithium.
There are obviously more reasons to go electric than these, from lower cost of ownership to saving the planet to absolutely killer burnouts that would make the one-tire-fire era IROC Camaros hang their 305s in shame – but I think those kind of fade into the background as being appealing to all, instead of being especially appealing to rural drivers.
That said, it’s been a long time since I was back in Ohio, so maybe I’ve forgotten what it’s like. You guys are smart, head on down to the comments and let me know what I missed!
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Honda’s electric SUV is on a roll. The Prologue was the third best-selling EV in the US in August, trailing only the Tesla Model Y and Model 3. Even with the federal EV tax credit now expired, Honda is still offering nearly $17,000 off the Prologue.
Honda Prologue registrations surge with huge incentives
As the $7,500 credit expired at the end of September, automakers rolled out steep discounts, many topping five figures with combined incentives.
The Honda Prologue has been one of the most discounted EVs over the past year or so. Last month, buyers could score up to over $20,000 in combined savings, including a $7,500 credit, $9,500 in financing bonuses, trade-in offers, and 0% interest for six years.
According to the latest registration data from S&P Global Mobility (via Automotive News), the incentives helped propel the Honda Prologue to become the third most popular EV in August.
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A total of 138,457 EVs were registered in the US in August, up 24% from a year ago. Honda Prologue registrations surged 81% to 9,005 vehicles, the data showed.
2025 Honda Prologue Elite (Source: Honda)
Honda’s electric SUV had more registrations than the Chevy Equinox EV in August, and it’s based on the same GM Ultium platform. However, the Equinox is still outselling the Prologue through September.
Since some automakers don’t report monthly or US sales numbers, the S&P Global Mobility data offers a snapshot of sales performance.
2025 Prologue Elite (Source: Honda)
The Prologue was yet again one of the most discounted models, with incentives of $12,704 in August, according to Motor Intelligence. Last August, Prologue incentives were just $5,813. Honda’s gas-powered CR-V had just $2,016 in incentives in August.
The interior of the 2025 Honda Prologue Elite (Source: Honda)
Although the $7,500 credit expired on September 30, Honda is still offering generous incentives for Prologue buyers and lessees.
The 2025 Honda Prologue is available with up to $16,550 in lease cash in most states. The offer includes $5,000 in lease bonus cash, $8,250 in Honda lease cash, and a $3,3300 loyalty or conquest bonus. Honda is offering the deal until November 11. Or, you can opt for 0% APR financing for up to 60 months.
2025 Honda Prologue trim
Starting Price*
EPA Range (miles)
EX (FWD)
$47,400
308
EX (AWD)
$50,400
294
Touring (FWD)
$51.700
308
Touring (AWD)
$54,700
294
Elite (AWD)
$57,900
283
2025 Honda Prologue prices and range by trim (*Does not include $1,450 D&H fee)
Although the Acura ZDX will not return for a 2026 model year, Honda is planning to launch the 2026 Prologue. We have yet to learn prices, but we could see it priced slightly lower due to the loss of the $7,500 EV credit.
Hyundai announced earlier this month it’s reducing 2026 IONIQ 5 prices by up to nearly $10,000 on some trims. The 2026 Hyundai IONIQ 5 now starts at under $35,000. Hyundai is offering leases as low as $289 per month right now. Will Honda match it?
Kia has a new idea. So you don’t miss the smell of gasoline too much when you trade in for its new EV, Kia is giving away free gas-scented air fresheners.
Kia offers gas-scented car fresheners for EV4 buyers
It’s time to trade that new car scented tree dangling from your rearview mirror for a jerry can that smells like… gasoline?
Astara Auto Finland, which imports Kia’s vehicles into Finland, is giving away free gasoline-scented car fresheners for those buying the new EV4.
Although it may seem like Kia’s poking fun at the gas guzzlers, it’s actually partly designed to ease your transition to an EV.
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“Giving up the combustion engine can feel like a huge step, just like giving up anything else that is familiar. We wanted to add a touch of nostalgic fun to the transition with a gas-scented car freshener,” Klaus Pohjala, commercial director at Astara Auto Finland, said.
The scent was created by Finland’s sole perfumier, Max Perttula, who has developed fragrances for other premium brands.
Kia starts EV4 hatchback production in Europe, its first EV built in Europe (Source: Kia UK)
According to Pertulla, he mostly used scents found in men’s fragrances, but added a bit of Jasmine to top things off. “It may sound wild that it’s jasmine of all things that contains compounds with a fragrance that creates associations with gasoline,” Pertulla said, but it works.
The fragrance came to life after metalizing and sanding it with amber compounds, birch tar, and galbanum, he explained.
The Kia EV4 hatchback at IAA Mobility 2025 in Munich (Source: Kia)
Of course, it’s a bit of a “cheeky campaign,” Pertulla said, but Kia aims to add a little fun for new EV drivers. The latest campaign comes after Kia’s importer ran a controversial front-page ad last year mocking traditional luxury automakers, claiming EVs have leveled the playing field.
The EV4 is rolling out in Europe, in both hatchback and sedan variants. Early next year, Kia will launch the sedan version in the US.
Do you miss the smell of gas? After driving an EV for years, I still think that it’s one of the best parts of owning one. Drop us a comment below and let us know what you think.
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