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According to internal documents obtained by Business Insider, the pay rates for Tesla factory workers now range from $22 to $39 per hour, reflecting the company's adjustment to the cost of living in different regions.
The pay structure is divided into three tiers, correlating with the geographical cost of living, with workers at Tesla's Austin, Texas, and Sparks, Nevada, locations on the lower end, and those in Fremont and Palo Alto, California, on the higher end.
Tesla categorizes its factory workers into seven levels, with compensation varying accordingly. For instance, Level 1 workers at the Fremont factory now earn $25.25 an hour, while Level 7 workers make $35.50 an hour.
The new pay rates are a significant leap from the national average of $28 an hour for auto workers, as the U.S. Bureau of Labor Statistics reported last year.