Barclays Bank: affected by the UAW strike, Tesla's salary will rise

CTOnews.com, October 2 (Xinhua)-- according to teslarati, Dan Levy, a senior auto analyst at Barclays Bank (one of the largest commercial banks in Britain), predicted on CNBC's The Exchange program that the wages of Tesla's employees may rise due to the continuing strike of UAW (United Auto Workers).

CTOnews.com notes that one of UAW's demands is to increase employees' wages, and established automakers such as Ford and General Motors already pay more hourly wages to employees than Tesla. Analysts point out that the impact of Detroit Big three production losses on the profits of each automaker is estimated to be about $40 million to $60 million a week. However, when the strike ends, that number is likely to rebound.

But the continuing strike will affect labour costs for US carmakers, so Mr Levy says he believes Tesla may also increase wages, although he acknowledges that Tesla has been very successful in providing shares to employees.

Mr Musk argues that Tesla's pay plan has made many of Tesla's employees millionaires over the years. He also warned that the UAW requirements could put Detroit's Big three on the fast track of bankruptcy.