Tesla Boosts Quarterly Performance Bonuses for Gigafactory Shanghai Workers

Credit: Tesla

In a recent development, Tesla has raised the quarterly performance bonuses for numerous workers at its Gigafactory Shanghai, according to a report. As Tesla’s largest facility worldwide in terms of volume, the Gigafactory Shanghai employs a staggering workforce of 20,000 individuals and possesses the capacity to produce up to a million electric vehicles (EVs) annually.

Employees based in Tesla China informed Reuters that they warmly welcomed this reward, especially since the company had previously reduced bonuses earlier this year following a safety incident that tragically claimed the life of a worker at the factory.

Several workers disclosed that for Q2 of 2023, they received bonuses equal to 1.5 times their monthly base salary. This figure surpasses the usual quarterly bonus of 1.2 times the monthly salary that many workers receive for average performance. Notably, the employees stated that Tesla did not provide a specific explanation for this bonus increase.

In the aftermath of the bonus cuts in April 2023, workers had appealed directly to CEO Elon Musk. In response, Musk expressed his awareness of the situation and pledged to investigate the matter thoroughly. The Gigafactory Shanghai primarily manufactures the popular Model 3 and Model Y vehicles for the local market and has also emerged as Tesla’s key export hub.

Earlier this month, reports emerged regarding layoffs at Giga Shanghai. Tesla made the decision to release several workers from the battery production line and offered some employees the opportunity to transition to different departments such as stamping, painting, or general assembly.

During a recent visit to the Shanghai plant, Musk commended the employees for their hard work, positive energy, and exceptional ability to accomplish tasks efficiently. He further emphasized that Giga Shanghai not only boasted the most productive operations but also maintained the highest quality standards.

The wholesale shipments of the Made in China (MIC) Model 3 and Model Y for Q2 2023 reached a remarkable 247,217 units, marking a substantial 120 percent increase compared to the previous year. This quarter’s output stands as the factory’s highest recorded production since its inception. The surge in sales can be attributed, in part, to the aggressive price reductions implemented by Tesla, which undoubtedly kept the Gigafactory Shanghai bustling with activity.

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