Tim Higgins, a Wall Street Journal reporter and CNBC contributor, suggests that Elon Musk has already won, regardless of the outcome of the ongoing strike. The focus is on labor costs, with Tesla estimated at $45 per hour compared to the UAW workers at Detroit automakers, averaging $66 per hour. The discussion delves into the challenges facing the Biden Administration in mediating the strike, concerns about the transition to electric vehicles impacting labor needs, and the potential impact on profits amid emission standards and the shift to EVs. Additionally, there's a mention of Tesla's unique compensation structure tied to stock options and the complexity of negotiations involving factors like workweek hours.
Here are the key facts extracted from the provided text:
1. Elon Musk has already won regardless of the strike's outcome.
2. UAW workers at Detroit automakers earn about $66 per hour (including benefits), while Tesla workers earn an estimated $45 per hour.
3. Tesla is working to cut manufacturing costs for electric vehicles by approximately 50% for the Next Generation vehicle.
4. The Biden Administration is getting involved in the labor dispute.
5. The Biden Administration has been pushing automakers toward electrification and offering incentives, causing concern about the future of labor.
6. There are estimates of 40% less labor needed for electric vehicles compared to traditional ones.
7. The 32-hour work week is a contentious issue in negotiations, as automakers are concerned about increased labor costs.
8. Compensation for Tesla workers, including stock options, is more aligned with the Silicon Valley mindset.
9. There's debate over whether the union should share in booming profits after accepting concessions in the past.
10. The transition to EVs and emission standards pose financial challenges for automakers, as they fund EV development from SUV and truck profits.