Will Tesla Ever Unionize?
If you've been paying attention to the news, you'll realize that there is a big debate going on with the traditional automakers, Ford, GM, and others. Employees are demanding 4 hour work weeks with a 40% increase in pay.
If you've looked at Tesla stock from when the company first went public in 2012 to now, over the course of 13 years, you'll see that the stock has increased nearly 19,000% or in other words, 190 times the value of when it initially did its Initial Public Offering from $1.28 then to about $244 now.
Employees at Tesla are rewarded with stock, and those who worked at Tesla in the early days are likely multi-millionaires now. Tesla is also known for its intense work conditions, and employees who work there must be totally aligned with the mission or likely don't last long.
No he literally does. There are multiple average factory workers who are millionaires because of their work at tesla. Probably one of the reasons the union gets voted down every time. https://t.co/rrqsfWUApB
— Startek (@startek119) September 23, 2023
If you've listened to what are known as "retail investors" about Tesla, you'll know that many see Tesla still quite a ways away from its ultimate potential and a possible 5 to 20 times more than its currently value depending on how its auto business, energy, FSD, and the Tesla Bot do in the future.
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Future of Tesla and Employees
So far, if there have been any attempts to unionize Tesla, they have been shot down at this point. The question to ask is what advantage does belonging to a Union give employees at Tesla -vs- being regular employees who get benefits, 401Ks, and stock options?
I think if you look at the future potential of Tesla, then you have to believe as an employee that stock is going to be far more worth it than belonging to a Union. Tesla also offers stock to employees at the lowest price it was per quarter - or something like that, making buying stock for employees a good option.
The future for Tesla is likely going to be hiring many more employees for a variety of roles related to new vehicles like the Cybertruck, as well as for its Tesla Bot product. If Tesla is going to make millions of Tesla Bots, it's going to require a lot of people to manage and make these. Tesla will automate all of this eventually, which leads me to the final point.
What happens to all employees at Tesla when Tesla has fully automated itself as a company. Will all jobs be related to AI, or what will hundreds of thousands of employees do if the Tesla Bot can start to do everything? I think training the Tesla Bots and labeling data becomes very important.
What do you think about the future of Tesla employees? Will it one day Unionize?
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Jeremy Johnson is a Tesla investor and supporter. He first invested in Tesla in 2017 after years of following Elon Musk and admiring his work ethic and intelligence. Since then, he's become a Tesla bull, covering anything about Tesla he can find, while also dabbling in other electric vehicle companies. Jeremy covers Tesla developments at Torque News. You can follow him on Twitter or LinkedIn to stay in touch and follow his Tesla news coverage on Torque News. Image Credit, Tesla, Screenshot