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Tesla sets record straight on Giga New York employees’ termination amid unionization efforts
Tesla was recently accused of terminating Giga New York employees because they attempted to form a union. A blog post from the electric vehicle maker has explained that this was not the case.
In a recent filing with the US National Labor Relations Board, the Workers United union noted that Tesla laid off dozens of Giga New York employees “in retaliation for union activity and to discourage union activity.” The union also asked the labor board to pursue a federal court injunction “to prevent irreparable destruction of employee rights resulting from Tesla’s unlawful conduct.”
The workers who attempted to unionize asked for job security and more pay, as well as a say in the decision-making in Giga New York. The employees also aimed to curb factors that they claimed were harmful to their health, such as monitoring, metrics, and production pressure. The Workers United union also noted that the pressure was heavy for the Autopilot labeling team’s workers that some could not even take bathroom breaks.
In a blog post addressing the issue, Tesla noted that “there is a false allegation that Tesla terminated employees in response to a new union campaign.” While the electric vehicle maker admitted that some employees who were part of the Autopilot labeling team were indeed terminated, it was not due to the unionization attempt.
Tesla stated that it conducts performance review cycles for its employees every six months. If employees are not able to meet their performance expectations, they will be laid off from the company. Tesla noted that this review process is not unique to Giga New York. Employees from across the globe are subjected to it. The most recent performance review cycle was thus from July 2022 to December 2022.
On December 13, 2022, Tesla managers received communication about the review schedule. The message included information stating that exits for low-performing employees would begin in the week of February 12, 2023. About 4% of the Autopilot labeling team in Giga New York were exited as a result of the July 2022 to December 2022 review cycle. Tesla explained that the employees were not terminated without warning.
“The employees let go as part of this process received prior feedback on their poor performance from their managers over the course of the review period. Despite feedback, they did not demonstrate sufficient improvement,” Tesla noted, adding that the impacted employees were identified on February 3, 2023.
This date was well before Giga New York employees announced their unionization campaign. Tesla noted that it became aware of the employees’ unionization efforts approximately ten days later. The company learned in hindsight that one out of the 27 employees impacted by the performance review identified as part of the unionization campaign.
Tesla noted that Giga New York’s Autopilot labeling team has been growing over the last several months at an average of 10 employees a week. In the past six months, the team’s employee base grew 54% from 437 employees to 675 workers as of the start of this week. The electric vehicle maker also explained that its time monitoring system for image labeling was put in place to ease the use of its labeling software.
“Since its purpose is to calculate how long it takes to label an image, there is nothing to be gained by delaying bathroom breaks. The claim that Tesla pressures employees to do so is categorically false,” Tesla noted.
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Tesla Megapacks chosen for 548 MWh energy storage project in Japan
Tesla plans to supply over 100 Megapack units to support a large stationary storage project in Japan, making it one of the country’s largest energy storage facilities.
Tesla’s Megapack grid-scale batteries have been selected to back an energy storage project in Japan, coming as the latest of the company’s continued deployment of the hardware.
As detailed in a report from Nikkei this week, Tesla plans to supply 142 Megapack units to support a 548 MWh storage project in Japan, set to become one of the country’s largest energy storage facilities. The project is being overseen by financial firm Orix, and it will be located at a facility Maibara in central Japan’s Shiga prefecture, and it aims to come online in early 2027.
The deal is just the latest of several Megapack deployments over the past few years, as the company continues to ramp production of the units. Tesla currently produces the Megapack at a facility in Lathrop, California, though the company also recently completed construction on its second so-called “Megafactory” in Shanghai China and is expected to begin production in the coming weeks.
READ MORE ON TESLA MEGAPACKS: Tesla Megapacks help power battery supplier Panasonic’s Kyoto test site
Tesla’s production of the Megapack has been ramping up at the Lathrop facility since initially opening in 2022, and both this site and the Shanghai Megafactory are aiming to eventually reach a volume production of 10,000 Megapack units per year. The company surpassed its 10,000th Megapack unit produced at Lathrop in November.
During Tesla’s Q4 earnings call last week, CEO Elon Musk also said that the company is looking to construct a third Megafactory, though he did not disclose where.
Last year, Tesla Energy also had record deployments of its Megapack and Powerwall home batteries with a total of 31.4 GWh of energy products deployed for a 114-percent increase from 2023.
Other recently deployed or announced Megapack projects include a massive 600 MW/1,600 MWh facility in Melbourne, a 75 MW/300 MWh energy storage site in Belgium, and a 228 MW/912 MWh storage project in Chile, along with many others still.
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Elon Musk responds to Ontario canceling $100M Starlink deal amid tariff drama
Ontario Premier Doug Ford said, opens new tab on February 3 that he was “ripping up” his province’s CA$100 million agreement with Starlink in response to the U.S. imposing tariffs on Canadian goods.
Elon Musk company SpaceX is set to lose a $100 million deal with the Canadian province of Ontario following a response to the Trump administration’s decision to apply 25 percent tariffs to the country.
Starlink, a satellite-based internet service launched by the Musk entity SpaceX, will lose a $100 million deal it had with Ontario, Premier Doug Ford announced today.
Starting today and until U.S. tariffs are removed, Ontario is banning American companies from provincial contracts.
Every year, the Ontario government and its agencies spend $30 billion on procurement, alongside our $200 billion plan to build Ontario. U.S.-based businesses will…
— Doug Ford (@fordnation) February 3, 2025
Ford said on X today that Ontario is banning American companies from provincial contracts:
“We’ll be ripping up the province’s contract with Starlink. Ontario won’t do business with people hellbent on destroying our economy. Canada didn’t start this fight with the U.S., but you better believe we’re ready to win it.”
It is a blow to the citizens of the province more than anything, as the Starlink internet constellation has provided people in rural areas across the globe stable and reliable access for several years.
Musk responded in simple terms, stating, “Oh well.”
Oh well https://t.co/1jpMu55T6s
— Elon Musk (@elonmusk) February 3, 2025
It seems Musk is less than enthused about the fact that Starlink is being eliminated from the province, but it does not seem like all that big of a blow either.
As previously mentioned, this impacts citizens more than Starlink itself, which has established itself as a main player in reliable internet access. Starlink has signed several contracts with various airlines and maritime companies.
It is also expanding to new territories across the globe on an almost daily basis.
With Mexico already working to avoid the tariff situation with the United States, it will be interesting to see if Canada does the same.
The two have shared a pleasant relationship, but President Trump is putting his foot down in terms of what comes across the border, which could impact Americans in the short term.
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Tesla Megapacks chosen for 548 MWh energy storage project in Japan
