Tesla Inc. Chief Executive Officer Elon Musk blasted the United Auto Workers Tuesday, saying the union’s demands would “drive GM, Ford and Chrysler bankrupt in the fast lane.”
They want a 40% pay raise *and* a 32 hour workweek. Sure way to drive GM, Ford and Chrysler bankrupt in the fast lane.
— Elon Musk (@elonmusk) September 26, 2023
The union is striking against General Motors Co., Ford Motor Co. and Stellantis NV, maker of the Jeep, Chrysler and Dodge brands.
The union, which has taken the rare step of striking against Detroit’s Big Three automakers simultaneously, has reduced its demands for pay raises in negotiations from 40% to 36%.
Tesla and other pure electric vehicle companies like Lucid Group Inc. and Rivian Automotive Inc. are not unionized.
They typically use restricted stock units and employee stock purchase plans for a big part of overall compensation. The UAW worries that EVs, which typically require fewer moving parts and fewer workers to make, will cost them jobs and reduce wages.
Tesla has industry leading profit margins, and Musk has vowed to chase volume over profits. The EV manufacturer has lowered the price of its vehicles this year, even as Detroit automakers are making the costly shift from making internal combustion engines to EVs.
