Tesla's Swedish Standoff: Dockworkers Block Shipments In Support Of Mechanics Strike

Tesla, Inc. TSLA reportedly faces a challenge in Sweden. Dockworkers there pledged on Friday to refuse offloading Tesla cars at any of the country's ports, extending their industrial action to support the EV maker's workers' demands for collective bargaining agreements.

Tesla, co-established by billionaire Elon Musk, does not have production facilities in Sweden. 

However, over 120 mechanics affiliated with the Swedish union IF Metall, who service Tesla's electric vehicles in the country, initiated a strike on Oct. 27.

Marie Nilsson, head of IF Metall, told Reuters that the union had obtained some signals early on in the dispute that Tesla was engaging in strike-breaking tactics by flying in workers from other countries.

"If they have come to Sweden, they must follow the rules. We have certain norms here and he (Musk) must accept them," said Torbjorn Johansson, negotiation secretary at Sweden's LO labour confederation, according to Reuters.

On Nov. 7, dockworkers joined the mechanics' strike, halting the entry of Tesla cars at Sweden's four major ports. 

This blockade was extended to include all ports in Sweden as of last Friday, the report added.

A representative from the union Transport, which represents the dockworkers, told Reuters that Swedish ports typically receive one to three Tesla car shipments weekly. However, since the strike's inception, no such shipments have arrived.

"So the blockade is working," the spokesperson said, as documented by Reuters.

On Friday, electricians halted service and repair activities for Tesla, encompassing the company's charging stations throughout Sweden, the report added.

Meanwhile, Nilsson confirmed to Reuters that IF Metall had no plans to stop the strike action anytime soon.

"As long as it is needed," she told the news agency.

Price Action: TSLA shares are trading higher by 0.56% to $234.90 at the time of publication Friday.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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