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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.

We noted that Tesla told salaried employees that they won’t be getting their normal stock compensation following their annual reviews.

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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Dealers are slashing prices on 2025 Kia Niro EV, nearly 25% off!

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Dealers are slashing prices on 2025 Kia Niro EV, nearly 25% off!

Just like it says on the tin – retailers are advertising killer deals on the fun-to-drive Kia Niro EV, with one midwest auto dealer reporting more than $10,000 off the sticker price of the Niro EV Wind. That’s nearly 25% off the top line price!

SKIP THE STORYget straight to the deals.

The Kia Niro EV gets overshadowed by its objectively excellent EV6 and EV9 stablemates – both of which are currently available with substantial lease cash and 0% APR financing, in fact – but that doesn’t mean it’s not an excellent little electric runabout in its own right.

The last time I had a Niro EV tester, my kids loved it, I liked that it was quicker and more tossable than I expected it to be, and my wife liked the fact that “it doesn’t look electric. It looks normal.” And, with well over 200 miles of real world range (EPA-rated range is 253 miles), it was more than up to the task of commuting around Chicago and making the trip up to the Great Wolf Lodge in Gurnee and back without even needing to look for a charger.

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It’s not the primary family hauler I’d choose – but as a second car? As a primary car for a slightly smaller family (1-2 kids, instead of 3-4)? The Kia Niro EV Wind, with a $42,470 MSRP, seems like a solid, “can’t go wrong” sort of choice. You know?

You won’t even have to pay that much, though. Raymond Kia in Antioch, Illinois is advertising a $42,470 Niro EV for $32,431 (that’s $10,039, or about 24% off the MSRP), and several others are advertising prices in the $33,000 range.

And, while we’re at it:


SOURCE | IMAGES: CarsDirect, Edmunds, Raymond Kia.


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Lion Electric leaves US school districts stuck with unsafe, broken buses

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Lion Electric leaves US school districts stuck with unsafe, broken buses

Many school districts who used EPA funding to help purchase Lion Electric school buses are now stuck with broken down or unsafe vehicles – but Lion’s new Canadian investors seemingly have no plans to make things right.

“All four Lion buses that we own are currently parked and not being used,” Coleen Souza, interim transportation director of Winthrop Public Schools, told Jay Traugott over at Clean Trucking. “Two of them are in need of repairs which would cost us money which we are not willing to invest in because the buses do not run for more than a month before needing more repairs.”

The story is much the same at other US school districts who deployed Lion Electric buses over the last few years – and the trouble they describe isn’t isolated to a single component or system. One district we spoke to had onboard chargers that failed almost immediately after being plugged into a L2 AC charger. Another that spoke to Traugott reported emergency door gaps, power steering failure, loss of power, and braking issues.

As bad as the revelations of safety and drivability issues and $250 million in unresolved debt have been, it’s the objectively stupid design choices that have been the most shocking.

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“Lion built an auxiliary diesel heater to heat the bus, essentially writing the manual as they went,” explained a school superintendent in the midwest, who asked not to be named. “It was fascinating to watch but there were design flaws with the heater. For example, the intakes pointed downward and we’re driving across rural roads and the intake sucks in that dirt.”

“Using a diesel-powered heater to warm an electric bus also somewhat defeats the purpose of going 100% zero-emissions,” added Traugott.

Despite a new electric school bus rebate and a fresh cash injection from Vincent Chiara, president of Quebec real estate powerhouse Groupe MACH, and Lion director Pierre Wilkie, however, it seems like no help is coming.

It just gets worse and worse


Decommissioned Lion electric buses; via Winthrop Public Schools.

Despite early speculation – some of it my own, in fact – that the new investors would take the Canadian government up on its offer to help subsidize more electric school bus production and honor the company’s outstanding warranty claims, it appears the only vehicle line the new investors are interested in reviving are the the Class 8 electric semi manufacturing operations in Saint-Jérôme, Quebec.

The US school districts who spent tens of millions of taxpayer dollars in the hopes that Lion buses would help decarbonize their fleets and reduce students’ exposure to harmful diesel emissions? Many of them are back to using diesel, while others are trying to get their deposits back so they can buy something else.

Here’s hoping any school districts on the fence for electrification recognize that their are very real, very well-engineered, and very financially sound electric school bus manufacturers out there who can deliver on their promises.

SOURCES: Chicago Tribune, Clean Trucking, Electrical Business.


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Mitsubishi debuts EV battery swap network for cars AND trucks in Tokyo

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Mitsubishi debuts EV battery swap network for cars AND trucks in Tokyo

Mitsubishi is partnering with Ample and Yamoto Transports to deploy an innovative new battery swap network for electric cars in its Japanese home market — but it’s not just for electric cars. Mitsubishi Fuso commercial trucks are getting in on the action, too!

Despite a number of early EV adopters with an overdeveloped concept of ownership, battery swap technology has proven to be both extremely effective and extremely positive to the overall EV ownership experience. And when you see how simple it is to add hundreds of miles of driving in just 100 seconds — quicker, in many cases, than pumping a tank of liquid fuel into an ICE-powered car — you might come around, yourself.

That seems to be what Mitsubishi thinks, anyway, and they’re hoping they’ll be your go-to choice when it’s time to electrify your regional and last-mile commercial delivery fleet(s) by launching a multi-year pilot program to deploy more than 150 battery-swappable commercial electric vehicles and 14 modular battery swapping stations across Tokyo, where the company plans to showcase its “five minute charging” tech in full view of hundreds of commercial fleets and, crucially, the executives of the companies that own and manage them.

How battery swap works for electric trucks
How battery swap works for electric trucks; via Mitsubishi Fuso.

A truck like the Mitsubishi eCanter typically requires a full night of AC charging to top off its batteries, and at least an hour or two on DC charging in Japan, according to Fuso. This joint pilot by Mitsubishi, Mitsubishi Fuso Trucks, and Ample aims to circumvent this issue of forced downtime with its swappable batteries, supporting vehicle uptime by delivering a full charge within minutes. The move is meant to encourage the transport industry’s EV shift while creating a depository of stored energy that can be deployed to the grid in the event of a natural disaster — something Mitsubishi in Japan has been working on for years.

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Trucks like the eCanter already serve a number of roles throughout the global truck market, including municipal waste collection, regional delivery support, and more.

The pilot is backed by Tokyo Metropolitan Government’s “Technology Development Support Project for Promoting New Energy,” with local delivery operator Yamato Transport testing swappable EVs for delivery operations on both its eCanter light-duty trucks and Mitsubishi Minicab kei-class electric vans.

Electrek’s Take


Fuso eCanter battery swap; via Mitsubishi.

Electrifying the commercial truck fleet is a key part of decarbonizing city truck fleets – not just here in the US, but around the world. I called the eCanter, “a great product for moving stuff around densely packed city streets,” and eliminating the corporate fear of EV charging in the wild just makes it an even better product for that purpose.

Here’s hoping we see more “right size” electric solutions like this one (and more battery swapping tech) in small towns and tight urban environments stateside somewhat sooner than later.

SOURCES | IMAGES: Mitsubishi, Fuso.


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