Tesla’s workers located at its German gigafactory in Gruenheide will receive a four per cent pay raise, the carmaker said on Tuesday.

Located outside Berlin, Tesla’s gigafactory employs around 1,500 temporary workers.

According to a Reuters report, employees at the German factory will receive a wage increase starting from November.

The news comes after Tesla announced last month that it would provide permanent positions to 500 workers from 1 November.

"This is further particularly welcome news for our workforce - especially at a time when many companies in the German automotive industry are talking about job cuts and plant closures," said human resources director Erik Demmler.

In 2023, Tesla announced plans to implement a pay increase across all of its factories in the US, which took effect on 8 January.

Tesla’s employee pay increase came as the United Auto Workers Union (UAW) turned its sights on all-electric car manufacturers.

Last year, the UAW successfully struck negotiations with the big Detroit 3: Ford, General Motors, and Stellantis. 

Tesla says it has an employee headcount of 140,473 worldwide as of 31 December, 2023.

“We can retain our employees, in part, not only because employees can enjoy ownership in Tesla through stock (of which 89 per cent have been given the opportunity to), but because we also provide them with excellent health benefits such as free counselling, paid parental leave, paid time off and zero-premium medical plan options that are made available on the first day of employment,” wrote Tesla a 2023 report.

In April 2024, however, CNN reported Tesla had plans to cut more than 10 per cent of its employee base due to increased competition and softer demand from the EV car sector.

“We have done a thorough review of the organisation and made the difficult decision to reduce our headcount by more than 10 per cent globally,” founder Elon Musk wrote in a letter to employees, according to a report from Reuters.

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