Tesla's Labor Dispute with Swedish Unions Escalates

Despite ongoing strike, Tesla's Model Y remains top-selling electric vehicle in Sweden

Tesla is facing its first labor action, a strike by 120 mechanics in Sweden, which has now spread to other unions in Denmark and Norway.
Unions are pressuring Tesla to sign a collective agreement with its Swedish workers, a tradition that covers about 90% of Swedish workers and sets work conditions across industries.
Tesla, while insisting it follows Swedish labor laws, has chosen not to sign a collective agreement and has taken legal action to compel delivery of license plates, with final decisions still pending.
Despite the strike, Tesla's Model Y remains the most popular electric vehicle in Sweden, causing concern among industry officials that a prolonged labor battle could harm business.
The strike is seen as a cultural clash between the Scandinavian labor market model, which emphasizes collective negotiation, and the Silicon Valley ethos of agility and vertical integration.