This week in EVs: Tesla's increased pay and discounted prices | Pro Recap

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Investing.com — Here is your weekly Pro Recap of the past week's biggest headlines in the electric vehicle space: Tesla cuts more than prices as EPA updates standards and pay for workers in the U.S. goes up. In addition, VinFast enters India with a big investment.

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Tesla's Trials: Range, Pay, Prices, Pause

Tesla Inc (NASDAQ:TSLA) had a rough week. First, the EV giant faces challenges with revised driving-range estimations for its electric vehicles. Responding to a new U.S. government regulation, Tesla adjusted its range estimates for various models, reflecting real-world performance accurately. The move follows concerns about Tesla's range estimates surpassing actual capabilities, leading to discontent among customers.

Tesla's Model 3 also underwent a redesign in North America, maintaining its prices despite the refresh. The updated long-range variant boasts an extended range of 341 miles per charge, along with new enhancements and color options. The move aims to rejuvenate Tesla's vehicle lineup within its primary market, following price competition and discounts in 2023.

The electric vehicle giant saw shares sink Thursday after it was announced that the company will implement pay increases for workers at its California car plant, aligning with other nonunion automakers like Toyota (NYSE:TM), Volkswagen (ETR:VOWG_p), and Hyundai (OTC:HYMTF). The pay raise comes as the United Autoworkers Union (UAW) seeks to increase membership in the U.S., leveraging its successful negotiations with the major Detroit automakers in 2023.

However, Tesla's decision to increase pay may complicate CEO Elon Musk's emphasis on cost-cutting measures. Musk, a vocal critic of unions,