Technology

Here is a big upside and downside if you get a job at Tesla

Despite of being one of the most valued companies in the automotive industry, there are still some downsides for its employees. Tesla Inc, located in Palo Alto California, did not provide any contributions to its 401(k) plan in 2020 regardless of the billions of profit the company makes.

The 401(k) plan is a retirement savings account that allows an employee of a respective company to direct some of their salary into long-term investments. It is considered to be a qualified retirement plan due to its eligibility for special tax benefits under the Internal Revenue Services (IRS) guidelines.

However, for Tesla, it has been the third straight year the company did not contribute to its 401(k) plan. According to the Form 5500, in the company’s 401(k) plan, the company enrolls employees with a deferral rate of 5% of their respective salaries.

According to Stephanie Ruhle, NBC News Business Correspondent, on Twitter:

“What am I missing? Tesla has paid
@elonmusk
billions & they are unwilling to match employee 401Ks? Do I have this wrong?”

However, Elon Musk responded in a tweet mentioning that all employees receive stock which is the missing fact in Stephanie’s statement.

The stock price of the company skyrocketed to 695% by the end of the year yet the company’s 401(k) plan requirements to make contributions was not available. In a nutshell, Tesla employees have both an upside and downside, they receive stocks, but insurance is highly unlikely for them.

Sponsored
Usman Aslam

A tech enthusiast, writer, researcher and strategist working on the latest technologies and making an impact. Usman has been heavily focused on building communities, empowering people through technological trends and advancements for over 3+ years including many notable names such as IEEE Region 10, TEDx, Google Developers, United Nations Programmes, Microsoft Partner Program and much more. Reach out: usman.aslam@techjuice.pk

Leave a Comment
Share
Published by
Usman Aslam

Recent Posts

Indian Army Granted Authority to Directly Takedown Social Media Content

The Indian Army has been granted direct authority to manage social media content concerning its…

4 hours ago

NUST Achieves Global Recognition with 43 Researchers Among World’s Top 2% Scientists

In an extraordinary accomplishment for Pakistani academia, 43 researchers from the National University of Sciences…

5 hours ago

Khyber Pakhtunkhwa Govt Ready to Acquire PIA with Bid Exceeding Rs10bn

The Khyber Pakhtunkhwa (KP) government has officially informed the federal government of its intention to…

7 hours ago

PTA Cautions Public on Illegal and Unlicensed Forex Trading Platforms

The Pakistan Telecommunication Authority (PTA) has issued a stern advisory, warning citizens against investing in…

7 hours ago

Record Emigration: Economic Instability Forces Pakistan’s Best and Brightest to Depart

Economic challenges are prompting skilled workers to leave Pakistan, resulting in a significant talent drain…

9 hours ago

Russia’s Fine on Google Exceeds World’s Economy

A Russian court has fined Google for blocking state-run media channels on YouTube, imposing a…

1 day ago