Tesla Raises Wages for Nevada Gigafactory Workers Amid Union Push

Tesla has told workers at its Sparks, Nev., battery plant that some hourly workers will receive pay raises of about 10% in January, CNBC reported, citing internal materials and battery workers.

Workers at Tesla's Gigafactory Nevada told CNBC they were informed of "cost of living adjustments," which represent a 10% or greater raise for most hourly workers, adding between $2 and $8.30 per hour to their wages.

Workers earning the lowest wages will see their hourly pay increase to $22 from $20 an hour, while top earners will see their pay increase to $34.50 from $30.65. The electric vehicle maker will also "streamline" its wage levels; workers currently making between $26.20 and $30.65 per hour will see their pay adjusted to $34.50 an hour, according to CNBC.

More than 11,000 people work at Tesla's current facility in Nevada, which cost $3.5 billion. The carmaker has said it will invest another $3.6 billion to build two factories and employ 3,000 new members in Nevada.

The wage hikes come as the United Auto Workers — fresh from record contracts with Ford Motor Co., General Motors and Stellantis — looks to organize facilities operated by 13 automakers across the U.S., including Tesla. Six other carmakers — including Hyundai, Toyota and Honda — have also committed to raising workers' pay since those agreements were approved.

Tesla is also facing a growing union challenge overseas after the company's service and collision repair centers in Sweden walked off the job in October. Since then, several other Swedish unions have launched strikes in solidarity with those workers. Transport workers in Finland, Denmark and Norway have also pledged to not deliver Tesla vehicles or components to the country.

Workers at Tesla's Gigafactory Berlin-Brandenburg were informed last month that a new vehicle would be built at the facility, and workers were informed they would receive 4% wage hikes. The announcement came just a month after "more than a thousand workers" showed their support for the IG Metall union.