The ongoing conflict between Tesla Inc (NASDAQ:TSLA) and car mechanics in Sweden has escalated even further this week with the introduction of a lawsuit against the Swedish state by Tesla.
The strife broke out last month, when IF Metall, a workers union which represents Tesla mechanics in the Scandinavian country, announced a strike after the carmaker failed to sign a collective agreement, a common practice between Swedish workers and employers.
Problems for the Austin-based EV maker grew larger as a significant number of workers in other areas of the country decided to stand in solidarity with the mechanics, causing trouble for Tesla all along its Swedish supply chain.
Just days ahead of the official launch of Tesla’s long-awaited Cybertruck, the conflict is becoming a new stick-in-the-wheel for the Elon Musk-led company. Musk announced that the first units of Tesla’s first pickup truck will be delivered on Thursday of this week as part of a special company event.
Tesla stock is up 0.9% on Monday following a month-long climb of over 14%.
What's Going On With Tesla In Sweden?
With a population of 10.4 million and a median household income of about $74,000 (in 2021 numbers), Sweden represents a minor but still significant market for the automaker. The country's long history of early adoption in sustainability practices also places it as a good opportunity for the EV maker to realize sales in the short to medium term.
Tesla does not produce any cars in Sweden but offers customer support and repairs. The company sold more units of its Model Y per capita in Sweden than in the U.S., as per data from Mobility Sweden and Car Figures, with 14,000 units sold in Sweden versus 292,000 sold in the U.S.
In the Swedish labor system, as per IF Metall, the government minimally intervenes in wage discussions. These negotiations are independently conducted between employers’ associations and labor unions, focusing on matters such as wages, benefits, insurance, and other ...