Why is Tesla unable to recruit at Giga Berlin?

The Gigafactory in Berlin, Tesla’s first European factory, has long been a problem for its administrative problems and the delay in its work. Production finally started on March 14, 2022, but since then the American manufacturer has been struggling to recruit. The staff is lacking. Of the 12,000 people needed, only 3,000 are currently hired.

The report is reported by the German union IG Metall, which transmitted the returns of certain contenders for the positions offered by Tesla who would have finally refused the offer. “Many people would be interested in a move to Tesla, but ultimately decide not to go, especially because they sometimes earn a lot more in their current company”.

The problem is reminiscent of competition within Silicon Valley. In California, many big tech companies are outbidding the best talent. Tesla and the Facebook group (Meta) are among the companies where it is considered difficult to work, compared to other companies like Twitter, which offer excellent working conditions and less difficult goals.

Elon Musk, the boss of Tesla, has often motivated his troops to increase the pace to meet quarterly and annual sales targets. Coming around the holiday season, employees are often asked to work harder in exchange for rewards. In Berlin, concern about goal stress isn’t necessarily mentioned – it’s more about salaries.

According to the union, pay at Tesla is about 20% lower than the competition. In Germany, qualified profiles have the choice with different car manufacturers such as Volkswagen (with Audi), Mercedes or even BMW. In the face of inflation, Tesla’s lag on its wages could worsen even further. The union asked for a revaluation of around 7 to 8% for the entire sector.

Produce 500,000 cars per year

In 2020, in what was a bumpy but overall good year for Tesla, the automaker was producing and delivering 499,550 Model S, Model X and Model 3 units. In Berlin, the eventual goal will be to reach to a production of 500,000 cars per year, the equivalent of the year 2020 in all Tesla factories. An ambitious target which will therefore require being able to hire with less difficulty.

Last week, the factory announced all the same that it had reached the production of 1000 Model Y per week. It is currently Model Y Performance, but soon, the other versions will join the production lines.

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