Tesla (NASDAQ: TSLA) has been hit by the first strike in company history.
The company has seen workers in Sweden begin a strike under the direction of the IF Metall industrial labor union. The strike follows five years of unsuccessful negotiations with TM Sweden, the automakers Swedish subsidiary. Most recently, TM Sweden and IF Metall were in discussions on Tuesday, which Tesla walked away from while reportedly claiming a corporate policy to not sign collective agreements.
While the company does not have any manufacturing facilities in country, Tesla does have an in-country network of repair shops for servicing its vehicles. The strike is said to have initially impacted 120 mechanics and service technicians, however they expanded on Friday to an additional 470 workers following the breakdown of talks.
The strike effectively brings to a halt the servicing, repairing, and the shipping of any Tesla vehicles in the country by union members. Operations could further be impacted by solidarity strikes by other unions that provide services to the company in-country.
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Workers striking in Sweden follows strong statements made stateside by United Auto Workers President Shawn Fain, who has its sights set on Tesla following successful strikes against the big three automakers, Ford, Stellantis, and General Motors, in the US.
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