Tesla Inc (NASDAQ:TSLA) shares were trading higher in Monday’s early premarket deals as chief executive Elon Musk got on the front foot in German labor relations – giving workers a pay rise and reportedly promising to build a line of budget EVs in the country.
The EV pioneer is to pay workers 4% more at its plant near Berlin, it was confirmed as Musk visited Germany late last week.
It follows pressure from a German union and local politicians, so said domestic media, even though the Tesla plant is not unionized.
Notably, for American auto workers, the raise is substantially smaller than the 25% hike secured by the UAW union for employees of Ford, General Motors and Stallantis.
At the same time, a separate report by Reuters, claimed that Musk told German Tesla employees that the company intends to build a new ‘low-cost’ car in the country.
In New York, Tesla stock was up $4.38 or 1.99% changing hands at $224.34.