FX.co ★ Elon Musk backfires at Robert Reich over Tesla pay cuts

Tesla CEO Elon Musk taught the Clinton-era cabinet member Robert Reich an economic lesson. Reich accused Musk of being a “modern-day robber baron” after his income soared by billions of dollars while company employees were forced to take a pay cut amid the coronavirus pandemic. Interestingly, the term "modern day robber baron" was widely used in the 19th century with a reference to capitalists who gained their wealth through exploitation.

"Tesla forced all workers to take a 10 percent pay cut from mid-April until July. In the same period, Tesla stock skyrocketed and CEO Elon Musk’s net worth quadrupled from $25 billion to over $100 billion. Musk is a modern-day robber baron," Robert Reich tweeted. However, before making such allegations, the former Labor Minister did not bother to study Tesla's salary system. "All Tesla workers also get stock, so their compensation increased proportionally. You are a modern day moron", Musk lashed out at him on Twitter. What is more, the company's management cut their salaries in the first place. Employees at the vice-president level cut their salaries by 30%. Directors and above had their pay cut by 20%. Everyone else received a 10% pay cut.

Additionally, this year, the value of Tesla shares hit record highs. Therefore, the company's employees are more than happy with their own income. There were also no complaints about working conditions or remuneration from the company's employees.