Tesla Employees Unhappy with Bonus Cuts, Musk ‘Looking Into’ Issue

1 million cars Giga Shanghai

Summary:

  • Tesla Shanghai workers unhappy with bonus cuts.
  • Social media posts criticize company’s handling of fatal accident.
  • Elon Musk investigating the issue.

Employees at Tesla’s Shanghai factory have taken to social media, including Twitter, to express their dissatisfaction with recent performance bonus cuts, according to workers and online posts.

Some of the posts criticize Tesla’s handling of a fatal accident that occurred at the factory earlier this year, speculating whether the bonus cuts are linked to the incident, reports Reuters.

This marks an unusual display of discontent at Tesla’s Shanghai plant, which is the company’s largest and most productive site. Workers at the factory received praise from Elon Musk last year for their dedication during the city’s two-month COVID lockdown.

Posts began appearing on Chinese social media forums such as Baidu Tieba late last week, and some individuals even tweeted at Elon Musk, his mother Maye Musk, and Tesla’s official accounts. Two workers at the plant told Reuters that their supervisors informed them about a reduction in their quarterly bonus payouts, which are connected to the factory’s performance. Giga Shanghai has around 20,000 employees.

Tesla supervisors allegedly cited a “safety incident” when asked about the reasons for the bonus cut. Several online posts claim that workers are being unfairly penalized for an incident that happened at the factory earlier this year, resulting in one worker’s death in February. A local government report concluded that oversight in Tesla’s safety management indirectly contributed to the accident.

Workers have claimed in online posts that their quarterly bonuses have been reduced by around 2,000 yuan ($291). Tesla is set to report its first-quarter results on Wednesday, with investors and analysts eager to see how the company’s recent price reductions have impacted its industry-leading margins.

On Monday morning, Musk responded to the report by saying, “was alerted this weekend. Looking into it.” Stay tuned for updates. It’s good that Musk has acknowledged the matter and is investigating.