The ongoing workers’ strike in Sweden against EV giant Tesla Inc TSLA may reportedly halt the rollout of new vehicles in the country. And CEO Elon Musk seems a bit rattled by it all.
What Happened: With the postal workers’ union at state-owned PostNord choosing to back the mechanics striking against the EV giant starting Monday, Tesla is not receiving the plates to be mounted on the vehicles, an X user wrote on Wednesday, citing the Swedish financial newspaper Dagens Industri (Di).
Adding to this, the Swedish Transport Agency does not distribute registration plates any other way.
“Tesla will henceforth not receive any new license plates because Postnord no longer handles mail for the electric car company,” the individual wrote. This will prevent new Tesla cars from being put into service.
“This is insane,” Musk responded on X.
In late October, IF Metall, a workers' union representing Tesla mechanics, commenced the strike against the automaker for collective bargaining agreements, a foundational aspect of the Swedish labor market. Collective agreements in Sweden encompass a range of employment conditions, including wages, form of employment, occupational pension, working hours, vacations, and notice periods.
Since then, other unions have joined the mechanics with dockworkers refusing to offload Tesla vehicles, unionized cleaning staff refusing to clean Tesla buildings, and electricians stopping service and repair work for Tesla.
Why It Matters: In an email to customers on Friday seeking to explain the situation in Sweden, Tesla said that it has chosen not to enter into a collective agreement “like many others.”
Despite the strike, more than 90% of the company’s employees continue to remain in their positions and come to work, the company said.
On Wednesday, Teslarati reported that Musk issued orders for the Swedish branch not to sign a collective agreement with the union, citing mediator Kurt Eriksson.
Though Tesla does not manufacture in Sweden, its Model Y is the best-selling car model in Sweden so far this year. The EV maker expanded into the European country in 2013.
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