Tesla sues Sweden: The potential impact at the European Level

Nov 27th, 2023 – Tesla has filed a lawsuit against the Swedish Transport Agency after postal workers of the country stopped delivering license plates connected to the U.S. carmaker: the company claims that such negligent behavior constitutes an “illegal and discriminatory attack”.

However, the legal action filed on the 27th of November, is part of a broader conflict between the carmaker and the Swedish unions.

The tension between the two started coming out a month ago, on October 27, when 130 members of the powerful Swedish metalworkers’ union “IF Metall”, went on strike at seven workshops across the country advocating for a collective labor agreement. Indeed, since Tesla isn’t unionized as a company, Swedish workers have been striving for better salaries, pensions and insurance systems. Mechanics then joined the “protests”, and postal workers showed off their wanting to exert pressure on the leading American company too.

Even though Tesla doesn’t have manufacturing plants in the Swedish territory, there are plenty of assistance centers there, and it’s worth remembering that the country acts as the largest European market for the company itself.

Indeed, the dispute between the Californian company and Sweden implies an even greater risk for the former than the “chaos”: the only supplier of profiles and aluminum components needed for the construction of the vehicles, “Hydra Extrusions” is located in Sweden. 

The eventual decision of the producer to stop providing supplies to Tesla would be impactful at the European level and result in serious trouble for the Californian company.

By now, the car manufacturer has asked the court to impose a fine of 1 million crowns ($95,383) on the Swedish Transport Agency and the delivering of the license plates within three days of notification of the district court’s decision.

As further news for the day, we have decided to purchase another 0.0623 units of NVDA at $421.90, taking advantage of the recent drop in prices and still believing in further growth of the giant tech company.

Author: Ilaria Savignoni

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