Key Points
- Tesla has increased the quarterly performance bonuses for many Gigafactory Shanghai workers after cutting them earlier this year.
- The increase in bonuses comes after the company’s record-breaking Q2 2023 deliveries of the Made in China (MIC) Model 3 and Model Y.
- Tesla China employees told Reuters that they received bonuses of 1.5 times their monthly base salary for Q2 2023, higher than the regular quarterly bonus of 1.2 times the monthly salary many workers received for average performance.
- In the wake of the bonus cuts in April 2023, workers had appealed to CEO Elon Musk, who had then stated that he was alerted about the situation and was looking into it.
- Musk visited the Shanghai plant recently and waxed eloquent about the employees’ hard work, positive energy, and the ability to “get things done.” He said that Giga Shanghai not just had the most efficient production, but also the highest quality.
- Q2 2023 wholesale shipments of the MIC Model 3 and Model Y amounted to a record 247,217 units, up 120 percent from the previous year. It’s the highest quarterly output the factory has achieved since production started.
- The increasing sales can also be attributed to aggressive price cuts, which likely kept Giga Shanghai busy.
Tesla
Tesla has increased the quarterly performance bonuses for many workers at Gigafactory Shanghai. The facility, which is Tesla’s largest by volume, employs 20,000 staff and has the capacity to produce one million electric vehicles annually.
Tesla China employees have expressed their appreciation for the increased bonuses, as the company had previously cut bonuses earlier in the year due to a safety incident at the factory that resulted in the death of a worker. For Q2 2023, some workers received bonuses of 1.5 times their monthly base salary, which is higher than the regular quarterly bonus of 1.2 times the monthly salary given for average performance. The reason for the bonus hike was not provided by the company.
Bonus cuts
After the bonus cuts in April 2023, workers reached out to CEO Elon Musk, who acknowledged the situation and stated that he was investigating it. The Tesla China plant manufactures the Model 3 and Model Y for the local market and has also become an export hub for the brand.
Recent reports mentioned layoffs at Giga Shanghai, with Tesla letting go of several workers on the battery production line and offering some employees the option to switch to different workshops. However, Elon Musk visited the Shanghai plant and praised the employees for their hard work, positive energy, and ability to get things done. He noted that Giga Shanghai not only had the most efficient production but also the highest quality.
Quarterly Output
In Q2 2023, wholesale shipments of the Made in China (MIC) Model 3 and Model Y reached a record 247,217 units, showing a 120 percent increase compared to the previous year. This is the highest quarterly output the factory has achieved since production started. The boost in sales can be attributed to aggressive price cuts, which likely kept Giga Shanghai busy.
Conclusion
Tesla has increased the quarterly performance bonuses for many Gigafactory Shanghai workers after cutting them earlier this year. The increase in bonuses comes after the company’s record-breaking Q2 2023 deliveries of the Made in China (MIC) Model 3 and Model Y.
Overall, the increase in bonuses is a positive development for Tesla and its workers. It is a sign of Tesla’s satisfaction with the performance of the Gigafactory Shanghai workers, and it is likely to help to improve morale at the plant.
