Tesla told employees today that it will do another pay adjustment, a second in a few weeks, after employees expressed disappointment with the last one.
But the automaker has now delayed the second pay increase, which is happening amid the CEO, Elon Musk, asking for a historic compensation package.
Tesla recently announced the annual wage increases for employees across the company following annual reviews.
Much has been said about Tesla factory workers getting pay bumps following the auto workers union’s win over the Big Three Automakers, putting more pressure on non-unionized automakers like Tesla.
However, not all Tesla employees have been happy with the pay adjustments.
The pay increase was also less than anticipated for hourly employees amid the high inflation environment.
Tesla employees have reached out to express those concerns.
A Tesla employee told Electrek about the impact of the reduced stock compensation:
This has had a severe impact with morale within the engineers at the company, since the increase in compensation hasn’t made up for the amount inflation as gone up over the last year. There has been significantly more discussions “at the bar” between engineers about compensation than seen in the past. Especially with a lot of high performers leaving for significantly higher pay by going to competitors. This is additional leaving holes in certain groups that haven’t been able to backfill. Newer employees also don’t believe that their current starting equity will have the same explosion that those who have been with the company pre-2019 have seen.
Apparently, Tesla heard some of those concerns and on January 1st, the company sent an email to employees letting them know that it will do another pay adjustment.
Tesla wrote in that email:
Thank you for sharing your feedback on the recent pay adjustments. We value your feedback and have decided to do another comprehensive review of our variable rate pay bands and the increases that were provided to ensure we get it right. Our goal is to provide market-competitive pay and benefits so we can retain the great, skilled talent we have.
Any adjustments that were already communicated will still go into effect on January 8 and we will update you by January 15 on any additional changes. As always, Tesla is a pay-for-performance company and employees must maintain good performance to be eligible for market adjustments. Thank you for your patience and sharing your feedback with us directly.
However, the January 15 deadline came and employees didn’t receive an updated pay adjustment.
Hourly employees were told that Tesla would need another two weeks to do a “market review”.
Electrek obtained the email sent to employees earlier this week:
It’s important to us that these decisions are made thoughtfully, so we will follow up in the next two weeks with information about what the market review means for you specifically.
This second wave of pay adjustments at Tesla comes amid the CEO, Elon Musk, himself discussing his own potential new compensation package.
But the CEO is using a negotiation tactic akin to a union threatening a strike, which is ironic considering he is hoping to keep unions away from Tesla.
Musk said that he wants 25% voting power at Tesla, which would require him to roughly double his number of shares in the company. If that doesn’t happen, the CEO said that he would prefer building AI products at his new startup xAI.
The threat is especially problematic as the CEO describes Tesla as an AI/robotics company and even said that Tesla is worth nothing if it doesn’t solve the AI problem with self-driving.
Electrek’s Take
As a Tesla fan, one of my biggest concerns has always been talent retention. Tesla is what it is today, the biggest driving force in the electric revolution, because of the incredible talent at the company.
That’s why it is super frustrating to me when Elon Musk supporters claim that Tesla would die without him:
The compensation has been good at Tesla, but that’s mostly due to stock options and the performance of the stock up until 2022.
The company also had the benefit of being an extremely mission-driven organization, which generally attracts talent, and had an inspiring leader in Elon Musk.
But now it feels like all these things that attract and retain talent at Tesla are slowly eroding.
Tesla’s stock performance is down. Stock options are down. Employees are not happy with the pay adjustments. The mission is still there, but it feels like the electric revolution is now well on its way. And finally, there’s Musk, who is increasingly polarizing, and he is asking for Tesla to basically give him back the shares he wasted on buying an overpriced Twitter.
Again, I’m not saying Musk doesn’t deserve a new compensation plan, but the way he asked for it by threatening to divert AI product development from Tesla to xAI should be concerning to Tesla shareholders and employees.
It feels like a dark cloud is over Tesla right now.
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National Grid Renewables has broken ground on its 100 MW Apple River Solar Project in Polk County, Wisconsin.
The Wisconsin solar farm, which will use US-made First Solar Series 6 Plus bifacial modules, will be constructed by The Boldt Company, creating 150 construction and service jobs. Apple River Solar will generate over $36 million in direct economic benefits over its first 20 years.
Once it comes online in late 2025, Apple River Solar will supply clean energy to Xcel Energy, which serves customers throughout the Upper Midwest. According to National Grid Renewables, the solar farm will generate enough energy to power around 26,000 homes annually. It will also offset about 129,900 metric tons of carbon dioxide emissions each year – equivalent to taking 30,900 cars off the road.
“We are excited to see this project begin as it underscores our dedication to delivering clean, reliable and affordable energy to our customers,” said Karl Hoesly, President, Xcel Energy-Wisconsin and Michigan. “This project is an important step in those goals while bringing significant economic benefits to Polk County and the local townships.”
Electrekreported in February that Xcel Energy, Minnesota’s largest utility, expects to cut more than 80% – and possibly up to 88% – of its emissions by 2030, putting it on track to hit Minnesota’s goal of net zero by 2040. It also says it’s on track to achieve its clean energy goals for all the Upper Midwest states it serves – Minnesota, Wisconsin, North Dakota, South Dakota, and Michigan.
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Tesla has announced that it will finally deliver 500 kW charging as it is about to install its long-awaited V4 Supercharger cabinets.
The rollout of Supercharger V4 has been a strange one, to say the least.
Tesla has been deploying the new charging stations for two years and calling them “Supercharger V4”, but it has only been deploying the charging stalls.
Supercharger stations are made of two main parts: the stalls, which are where the charging cable is located, and the cabinets, which are generally located further back and include all the power electronics.
For all these new “Supercharger V4”, Tesla was actually using Supercharger V3 cabinets. This has been limiting the power output of the charging stations to 250 kW – although
Today, Tesla officially announced its “V4 Cabinet”, which the automaker claims will enable of “delivering up to 500kW for cars and 1.2MW for Semi.”
Here are the main features of the V4 Cabinet as per Tesla:
Faster charging: Supports 400V-1000V vehicle architectures, including 30% faster charging for Cybertruck. S3XY vehicles enjoy 250kW charge rates they already experience on V3 Cabinet — charging up to 200 miles in 15 minutes.
Faster deployments: V4 Cabinet powers 8 posts, 2X the stalls per cabinet. Lower footprint and complexity = more sites coming online faster.
Next-generation hardware: Cutting-edge power electronics designed to be the most reliable on the planet, with 3X power density enabling higher throughput with lower costs.
Tesla reports that its first sites with the new V4 Cabinets are going into permitting now. The company expects its first sites to open next year.
We recently reported about Tesla’s new Oasis Supercharger project, which includes larger solar arrays and battery packs to operate the charging station mostly off-grid.
Early in the deployment of the Supercharger network, Tesla promised to add solar arrays and batteries to all Supercharger stations, and Musk even said that most stations would be able to operate off-grid.
While Tesla did add solar and batteries to a few stations, the vast majority of them don’t have their own power system or have only minimal solar canopies.
Back in 2016, I asked Musk about this, and he said that it would now happen as Tesla had the “pieces now in place” with Supercharger V3, Powerpack V2, and SolarCity:
It took about 8 years, but it sounds like the pieces are now getting actually in place with Supercharger V4, Megapacks, and this new Oasis project.
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Hyundai has a new secret weapon it’s about ready to unleash. To revamp the brand in China and counter BYD’s surge, Hyundai is launching a new AI-powered EV next year. The new model will be Hyundai’s first dedicated electric car for the world’s largest EV market.
With the help of Haomo, a Chinese autonomous startup, Hyundai will launch its first EV equipped with generative AI. It will also be its first model designed specifically for China.
A Hyundai Motor official said (via The Korea Herald) the company is “working to load the software” onto the new EV model, “which will be released in the Chinese market next year.” The spokesperson added, “The level of autonomous driving is somewhere between 2 and 2.5.”
In comparison, Tesla’s Autopilot is considered a level 2 advanced driver assistance system (ADAS) on the SAE scale (0 to 5), meaning it offers limited hands-free features.
With Autopilot, you still have to keep your eyes on the road and hands on the steering wheel, or the system will notify you and eventually disengage.
Haomo’s system, DriveGPT, unveiled last spring, takes inspiration from the OpenAI’s popular ChatGPT.
The system can continuously update in real-time to optimize decision-making by absorbing traffic data patterns. According to Haomo, DriveGPT is used in around 20 models as it looks to play a bigger role in China.
Hyundai hopes new AI-powered EV boosts sales in China
Electric vehicle sales continue surging in China. According to Rho Motion, China set another EV sales record last month with 1.2 million units sold, up 50% from October 2023.
Over 8.4 million EVs were sold in China in the first ten months of 2024, a notable 38% increase from last year.
BYD continues to dominate its home market. According to Autovista24, BYD accounted for 32.9% of all PHEV and EV (NEV) sales in China through September, with over half of the top 20 best-selling EV models.
Tesla was second with a 6.5% share of the market, but keep in mind these numbers only include plug-in models (PHEV).
Like most foreign automakers, Hyundai is struggling to keep up with the influx of low-cost electric models in China. Beijing Hyundai’s sales have been slipping since 2017. Through September, Korean automaker’s share of the Chinese market fell to just 1.2%.
According to local reports, Hyundai is partnering with other local tech companies like Thundersoft, a smart cockpit provider, and others in China to power up its next-gen EVs
With its first AI-powered EV launching next year, Hyundai hopes to turn things around in the region quickly. The new model will be one of five to launch in China through 2026.
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