A worker at Tesla’s Austin factory has died of cardiac arrest, prompting an investigation into working conditions there. The death has raised questions about safety at Tesla facilities. This isn’t the only bad news.
It is unclear whether the death of the worker in Texas is related to harsh working conditions – Illustration photo: Getty
Worker 𝓀𝒾𝓁𝓁ed at Tesla factory
According to media reports in Austin, Texas, USA, on August 1, a worker at Tesla ‘s Gigafactory unfortunately passed away. The cause is believed to be cardiac arrest.
Authorities immediately began investigating whether safety factors were involved in the death.
The Occupational Safety and Health Administration (OSHA) has officially stepped in. According to an OSHA representative, the agency typically investigates incidents involving workplace injuries, deaths, or complaints that result in hospitalization.
“The investigation into this death could take up to six months,” the spokesperson said. If Tesla is found to have failed to provide a safe work environment, the company could face federal penalties.
According to the San Antonio Express News, emergency personnel were called to the scene at 8:30 a.m. on August 1. After the emergency call, the situation was later updated to an incident involving “one deceased.” Although Tesla has not officially commented on the incident, OSHA has confirmed that they will investigate – Photo: Tesla
Tesla was previously fined $38,000 by the California Department of Occupational Safety and Health for serious injuries at its Fremont factory. The incident involved a worker who became trapped in a Model Y due to a conveyor belt malfunction. The company has contested the fine.
This is not the first time Tesla has been criticized for working conditions at its factories. Workers have complained about long hours, unsafe working conditions, and even harassment in the workplace.
According to a report from Futurism, this problem is not only happening at facilities in the US but also at Tesla’s factory in China, where a worker also died last year.
Following the death of a worker at its Shanghai factory in February 2023, Chinese government inspectors found that Tesla had “weaknesses in safety measures”.
With Tesla lacking an official communications department, it’s likely that details of the incident won’t be released until after the Occupational Safety and Health Administration completes its investigation, which could take until next year.
The AI bubble is bursting, Tesla could pay the price
The worker death is not the only bad news for Tesla. According to financial news from Bloomberg and Reuters, the bubble in technology, AI and robotics has started to burst in the past week.
When major technology companies released disappointing financial reports, the market reacted strongly – Illustration photo: Nasdaq
As major companies investing in AI technology such as Amazon, Microsoft, Apple, Tesla, and Nvidia reported earnings that fell short of expectations this quarter and disclosed billions of dollars in AI investments, the market responded by recording its sharpest decline in recent memory.
According to experts, the AI arms race could lead to mutual destruction. Among these, it seems that Tesla and Elon Musk are in the most dangerous position.
Tesla started out with the idea of revolutionizing the auto industry with electric cars that changed the way people drive. However, as the rest of the auto industry caught up with Tesla, Elon Musk pivoted Tesla away from profitable electric cars and into the realm of Silicon Valley.
Elon Musk seems to be betting all on AI, instead of real cars – Photo: EU Reporter
Earlier this year, Elon Musk said Tesla would invest $10 billion in AI and machine learning by 2024. Of that, $4 billion is expected to be spent on purchasing Nvidia hardware to boost
processing power.
However, Musk’s AI company, xAI, is in financial trouble. Therefore, Elon Musk has hinted at using Tesla’s finances to bail it out. The rescue package is worth up to $5 billion. The auto news site Jalopnik commented: “It feels like Tesla is spending a lot of money on AI-related processors, but xAI is the one who is reaping the benefits.”
Tesla’s massive investment and the market’s dizzying volatility have raised a burning question for the electric carmaker’s future: If the AI world really collapses, will Tesla share the same fate?
Thin profits and falling market share show how Tesla is struggling. Tesla came out of a difficult period with its affordable electric car, the Model 3. Can the company overcome this challenge now?
