Tesla Inc (NASDAQ: TESLA) CEO Elon Musk took a dig at United Auto Workers (UAW), a key North American labor union, following reports that a former official has pleaded guilty to charges that he embezzled more than $2 million in union money.
What Happened: Musk said on Twitter that, unlike the UAW, Tesla has made many workers millionaires via stock grants, adding that the difference is “subtle” but important.
Musk took another, more direct swipe at the UAW in a separate post, saying the labor union’s slogan should be, “Fighting for the right to embezzle money from auto workers!”
The UAW stole millions from workers, whereas Tesla has made many workers millionaires (via stock grants). Subtle, but important difference.
— Elon Musk (@elonmusk) March 29, 2022
Former UAW secretary-treasurer Timothy Edmunds on Monday reportedly pleaded guilty to embezzling union funds and money laundering. Edmunds used the labor group’s credit cards for personal purchases, cashing local checks, and transferring money into his account.
Why It Matters: UAW represents legacy automakers such as General Motors Co (NYSE: GM), Ford Motors Co (NYSE: F), and others. Unlike GM and Ford, Tesla does not have unions at its factories.
Musk’s aversion to labor unions at Tesla factories is well known. Earlier this month, he dared the UAW to hold a vote at their "convenience" at the EV maker’s Fremont factory in California and see if they manage to win.
Musk had then said that Tesla compensates and treats its employees well, a reason why he is not worried about unions organizing at his company.
The Austin, Texas-based company had 99,290 full-time employees at the end of 2021.
Price Action: Tesla stock closed 0.7% higher at $1,099.6 a share on Tuesday.
