In response to the United Auto Workers (UAW) union attempt to form a union, Tesla informed workers at its California auto plant that it would raise wages at all of its U.S. plants. All Tesla production workers, material handlers and quality inspectors in the U.S. will receive "market-adjusted pay increases," according to a notice posted at the California factory.

Tesla did not disclose the specific salary increase. Tesla’s senior director of human resources did not respond to reporters’ questions.


Tesla's factory in Fremont, California.

The move means Tesla is joining Toyota, Volkswagen and Hyundai in raising wages. Last year, UAW workers at Ford, GM, and Stellantis achieved historic victories in labor negotiations. The union is pushing workers at Tesla and a dozen other manufacturing companies to join the union, hoping to double the number of auto workers in the union.

Tesla has more than 20,000 workers in its California factory alone. A person familiar with the matter said last year that employees at the plant had formed a UAW organizing committee and the UAW pledged to provide all necessary resources to do so.