Tesla (TSLA) stock on Monday revealed electric car maker Giga Berlin may build long-awaited cheap EVs, while German Tesla workers receive pay rises as union pressure mounts The market ended with a slight decline.
As first reported, Reuters, Tesla plans to build a mainstream EV priced at 25,000 euros ($26,838) on its upcoming third-generation platform at Giga Berlin. CEO Elon Musk revealed these plans during a visit to Giga’s Berlin factory on Friday after visiting the UK for an AI summit.
However, Reuters sources declined to say when production would begin, and other sources say Tesla is close to developing manufacturing technology that would allow it to die-cast (or mold) nearly the entire underbody of a car in one piece. , which will increase production speed. Increase production and reduce costs.
Musk has said in the past that production breakthroughs and a redesigned factory layout would allow Tesla to make EVs more cheaply. Most recently, he warned that high interest rates are making EVs unaffordable, and that that (rather than demand) is the company’s main impediment to growth.
“I’m concerned about the high interest rate environment that we’re in,” Musk said during Tesla’s recent earnings call, adding, “I can’t stress enough how important cost is… We have to make our products more affordable,” he added.people can buy [them]”
Investors have been waiting for more information about Tesla’s cheaper upcoming third-generation platform and the models based on it since the company’s investor day in March, when the company did not provide details.
According to Walt Mossberg’s new biography of Elon Musk, a 25,000 euro car almost never materialized. Musk was more interested in building inexpensive “robotaxis,” or self-driving cars with no pedals or steering wheel, than in cheap EVs. According to Mossberg.
According to reports, Musk’s top lieutenants, including chief design officer Franz von Holzhausen, believe that Tesla needs a cheap, global EV to meet its 50% annual growth rate, and that the company convinced Musk that it was possible to build both inexpensive electric vehicles and robotaxis on the same platform. , thus reducing costs. Mossberg said Musk appears to have agreed to a compromise after seeing a design review of both vehicles with Cybertruck-like features.
Trade union pressure at Giga Berlin
Sticking to Tesla’s Berlin factory, workers at the factory apparently received a wage increase under heavy pressure from the union.
Tesla executives revealed that Giga Berlin employees received a 4% pay increase during Musk’s visit to the factory. wall street journal It was reported on Sunday.
Germany’s powerful IG Metall union, which represents the country’s autoworkers, is organizing Giga Berlin workers and trying to force Tesla to agree to a union contract. So far, Tesla has not agreed to accept a union contract. According to the paper, Tesla is the only major car manufacturer in Europe without union representation on the factory floor.
The news in Germany follows the success of the United Auto Workers (UAW) in the United States and comments from UAW President Sean Fein, who said: Tesla is union’s next target.
At least in Germany, Tesla said its wage hikes are not tied to union organizing efforts. Tesla said, “Allegations that there is a connection between Tesla’s pay adjustments and labor union activities are false.”
“If you compare annual wages, there is a huge difference between Tesla and union workers at Porsche, BMW, Audi, VW, Daimler and Ford,” said IG Metall regional director Dirk Schulze.
Tesla EU Press Office and IG Metall did not immediately respond to requests for further comment on the wage increase at Giga Berlin.
Correction: A previous version of this article incorrectly cited the author of Elon Musk’s new biography. We apologize for the error.
Pras Subramanian is a reporter for Yahoo Finance.you can follow him twitter And even more Instagram.
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