Tesla Now Employs 47K People in California via Direct Jobs, Continues to Boost Local Economy

Tesla Now Employs 47K People in California via Direct Jobs, Continues to Boost Local Economy

Image: Josh Edelson/AFP

Tesla makes a huge contribution to the economic development of California, leaving a qualitative footprint. With 47,000 employees (direct employment), the company pays the highest salaries in the sectors it operates.

Tesla has released a new blog post in which it talked about its footprint in California. Although relations between the state and the company strained in 2020 and the manufacturer has moved its headquarters to Texas, Tesla continues to make a huge contribution to the development of the state's economy for over 20 years. Tesla noted that its impact on California is measured not only by its environmental achievements, but also by the positive economic growth that the company has been able to share with the state and its residents.

Tesla’s footprint in California is made up of Megapack production and vehicle castings in Lathrop, hardware and software engineering in Palo Alto, vehicle and battery manufacturing in Fremont, battery development and testing in San Diego and vehicle design in Hawthorne. All of these facilities have a big impact on employment, wages, gross state product and tax base in the state. Tesla-backed jobs in California increased by 40% from 2018 to 2021, and wages in 2021 exceeded the state average by 50%, offering the highest compensation in the sectors the company operates in.

A recent economic impact assessment conducted by IHS Markit indicates that Tesla’s economic impacts in California include:

  • Tesla-supported California jobs (direct and indirect) exceeded 80,000 in 2021. Over 43,000 of these stemmed from $1.6 billion in expenditures with California suppliers.
  • For every 100 direct Tesla jobs, 50 more were supported in the supply chain and 68 by follow-on consumer activity.
  • From 2018 to 2021, Tesla paid an average of $1 billion in federal, state and local taxes annually, with approximately $400 million going toward state and local taxes in 2021.
  • Tesla's average contribution to the gross state product (GSP) rose by 42% between 2018-2021, while the state’s GSP grew by 16%.
  • Wages from Tesla and Tesla-connected jobs resulted in $16.6 billion in economic activity, or $44.4 million injected into California's economy each day.

Tesla also added to the data and said that in 2022, its workforce grew to 47,000 employees (direct employment) in California, and its production areas continued to grow. Since 2016, the company has invested more than $5 billion in its facilities. The manufacturer expressed confidence that these trends will continue and that 2023 will be an even bigger year for it in California.

H/T @GailAlfarATX/Twitter

© 2023, Eva Fox | Tesmanian. All rights reserved.


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Article edited by @SmokeyShorts; follow him on Twitter

About the Author

Eva Fox

Eva Fox

Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.

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