Between 2015 and 2018, Tesla had plans to open its first gigafactory in Europe. However, the specifics of the Giga Berlin, also known as Gigafactory 4, were revealed by Elon Musk in November 2019. The grand opening occurred in late March 2022, and by the end of April, the facility began producing the Model Y Performance featuring 2170-cells. With a workforce of 12,000 and an annual output of 250,000 vehicles, this sole production site in Europe has the potential to reach a capacity of 1 million vehicles per year in the future, though current market conditions have put this ambition on pause.
Job Security and Wage Increases
Last month, Tesla made the decision to convert 500 temporary positions into permanent ones, effective November 1st. Just today, the company announced that all employees at the German gigafactory will receive a 4% wage increase starting this month. Erik Demmler, the HR director, stated,
"This is particularly good news for our workforce - especially when many companies in the German automotive industry are discussing layoffs and plant closures."
Cost-Cutting Measures
According to Reuters, Tesla has not renewed contracts with some subcontractors and has also implemented voluntary staff reductions earlier this year as part of its efforts to cut costs. However, these measures did not include any pay reductions. In contrast, Volkswagen, Europe’s largest automaker, is currently requesting that its employees accept a 10% salary cut to retain their jobs and maintain competitiveness.
