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State officials highlight worker choice in Tesla Giga Berlin labor dispute
As Tesla faces continued labor efforts in Europe over whether the company’s German Gigafactory will sign a collective labor agreement, the automaker has largely doubled down on the idea that its workers are better off being independent from a union’s influence. However, local officials have recently explained why they think an agreement could be mutually beneficial for workers and for Tesla overall, though they emphasize that it’s ultimately up to the workers.
Earlier this month, multiple workers at Tesla’s Gigafactory Berlin, including the works council leader, defended the company’s avoidance of a labor agreement, saying the automaker’s close proximity to the workers made it easier to make routine changes and find solutions for workers.
In recent statements to Teslarati, an official from the Brandenburg Ministry of Economy, Labor and Energy has noted how social partnership between workers and unions contributes to the German economy and to companies overall, while the autonomy of employees to choose remains an important part of the equation.
“It would be good if IG Metall and Tesla could agree on a collective labor agreement or at least talk about it,” said Felix Dollase, a spokesperson for the Brandenburg Ministry of Economy, Labor and Energy, in an email to Teslarati. The statements closely echoed those from Brandenburg Minister Jörg Steinbach made earlier this month.
“Like Social Partnership as a whole, this would have many advantages for both sides. Social partnership is partly responsible for prosperity. It has been creating conditions for economic growth for decades and is also responsible for a well-developed welfare state,” Dollase added.
In Germany, it is up to each individual worker to decide whether they want to join a union, and the greater the proportion of union-represented workers, the greater the strength of the union in that company, as Dollase clarified in the email. In addition, he explained that workers have the right to elect and facilitate a works council, which can’t be taken away by the company, and unions are allowed to offer up an electoral candidacy list during elections.
The result, Dollase says, is an effective system of businesses that play an important role in Germany’s economy and society. However, he also says individual autonomy in choosing whether or not to join a union plays an equal role in this process.
“This is not an obstacle for productivity, but increases it, and makes an important contribution to stabilizing society and the economy,” Dollase added. “This is why Social Partnership is and remains an important part of our economic system. But it is also characterized by the autonomy of the social partners.”
Tesla’s Giga Berlin elected a works council in 2022, though IG Metall has accused it of being comprised primarily of lower-level leadership workers who are close to executive management (via Wall Street Journal). The leader of the current works council at Giga Berlin recently also opposed a collective labor agreement with IG Metall in a report, saying that union influence would make the company lose its agility.
“We are close to the workforce,” said Michaela Schmitz, leader of Giga Berlin’s works council. “Our agility will be lost if we are influenced from outside.”
“We are focusing on ourselves in order to find solutions for our employees quickly and without unnecessary escalation and thus make changes happen significantly faster,” said Andre Thierig, senior director of manufacturing at Tesla’s Giga Berlin, in the same piece.
As of writing, Tesla and IG Metall have not responded to Teslarati‘s requests for comment on the ongoing labor efforts.
The statements come as Tesla faces strikes in Sweden, lodged by union IF Metall, and including sympathy strikes from other entities. Despite IF Metall’s attempts to encourage unions around the world to target Tesla, including IG Metall, the German union highlighted autonomy then too, noting the importance of individual workers having the choice as to whether or not they should join a union.
“If IG Metall got to decide, Tesla’s employees would have a collective agreement,” said IG Metall spokesperson Markus Sievers in a statement last month about the encouragement to join strike efforts. “But the initiative must come from the employees.”
One Tesla Sweden worker recently spoke out after being expelled from IF Metall, due to his unwillingness to join the strike. The worker, who asked to remain anonymous, said he is facing “harassment” from the union, adding that he feels “terrified” of them as they “try to make it difficult” for workers. Operationally, the Tesla Sweden employee explains, work has not changed much, despite the labor union’s efforts.
“The main reason is that I care about the environment and enjoy my job,” the worker said as to why he won’t join the strike. “And I care a lot about our customers too. I want customers to feel safe choosing Tesla.”
Despite this, IG Metall said in October that Tesla workers at Giga Berlin were joining the union in droves, largely due to health and safety concerns. Last January, the union also claimed that workers weren’t getting enough time for “leisure, family and recovery,” once again emphasizing that it thinks Tesla needs a union in Germany.
Tesla gets new neighbor as Germany’s IG Metall union builds office near Giga Berlin
Are you a worker at Tesla’s Gigafactory Berlin or a member of the German union IG Metall? If so, reach out and tell me your thoughts at zach@teslarati.com, find me on X at @zacharyvisconti, or send us your tips at tips@teslarati.com.
Elon Musk
Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry
Tesla, SpaceX, and xAI unveiled TERAFAB, a $25B chip factory targeting one terawatt of AI compute annually.
Elon Musk took the stage over the weekend at the defunct Seaholm Power Plant in Austin, Texas, to officially unveil TERAFAB, a $20-25 billion joint venture between Tesla, SpaceX, and xAI that he described as “the most epic chip building exercise in history by far.” The announcement marks the most ambitious infrastructure bet Musk has made since Gigafactory 1 in Sparks, Nevada, and it fuses three of his companies into a single, vertically integrated AI hardware machine for the first time.
TERAFAB is designed to consolidate every stage of semiconductor production under one roof, including chip design, lithography, fabrication, memory production, advanced packaging, and testing. At full capacity, the facility would scale to roughly 70% of the global output from the current world’s largest semiconductor foundry from Taiwan Semiconductor Manufacturing Company (TSMC).
Elon Musk’s stated goal is one terawatt of computing power annually, split between Tesla’s AI5 inference chips for vehicles and Optimus robots, and D3 chips built specifically for SpaceXAI’s orbital satellite constellation.
Tesla Terafab set for launch: Inside the $20B AI chip factory that will reshape the auto industry
The logic behind the merger of these three entities is rooted in a supply chain crisis Musk has been signaling for over a year. At Tesla’s Q4 2025 earnings call, he warned investors that external chip capacity from TSMC, Samsung, and Micron would hit a ceiling within three to four years. “We’re very grateful to our existing supply chain, to Samsung, TSMC, Micron and others,” Musk acknowledged at the Terafab event, “but there’s a maximum rate at which they’re comfortable expanding.” Building in-house was, in his framing, not a strategic option, but a necessity.
The space angle is where the announcement becomes genuinely unprecedented. Musk said 80% of Terafab’s compute output would be directed toward space-based orbital AI satellites, arguing that solar irradiance in space is roughly 5x greater than at Earth’s surface, and that heat rejection in vacuum makes thermal scaling viable. This directly feeds the SpaceXAI vision, which is betting that within two to three years, running AI workloads in orbit will be cheaper than doing so on the ground. The satellites, powered by constant solar energy, would effectively turn low Earth orbit into the world’s largest data center.
Will Tesla join the fold? Predicting a triple merger with SpaceX and xAI
Historically, this announcement threads together every major Musk initiative of the past two years: the xAI-SpaceX merger, Tesla’s $2.9 billion solar equipment talks with Chinese suppliers, the 100 GW domestic solar manufacturing push, the Optimus humanoid robot program, and Starship’s development. TERAFAB is the capstone that ties them into a single coherent architecture — chips made on Earth, launched by SpaceX, powered by Tesla solar, run by xAI, and ultimately extended to the Moon.
“I want us to live long enough to see the mass driver on the moon, because that’s going to be incredibly epic,”Musk said during the presentation.
Announcing TERAFAB: the next step towards becoming a galactic civilization https://t.co/IDKey07mJa
— Tesla (@Tesla) March 22, 2026
News
Rolls-Royce makes shocking move on its EV future
When Rolls-Royce unveiled its first all-electric model, the Spectre, in 2022, former CEO Torsten Müller-Ötvös declared the brand would cease production of internal combustion engine vehicles by the end of the decade.
Rolls-Royce made a shocking move on its EV future after planning to go all-electric by the end of the decade. Now, the company is tempering its expectations for electric vehicles, and its CEO is aiming to lean on its legacy of high-powered combustion engines to lead it into the future.
In a significant reversal, Rolls-Royce Motor Cars has scrapped its ambitious plan to become an all-electric manufacturer by 2030. The luxury British marque announced the decision amid sustained customer demand for traditional combustion engines and shifting regulatory landscapes.
When Rolls-Royce unveiled its first all-electric model, the Spectre, in 2022, former CEO Torsten Müller-Ötvös declared the brand would cease production of internal combustion engine vehicles by the end of the decade.
The move aligned with the industry’s broader push toward electrification, promising silent, effortless power befitting the “Rolls-Royce of cars.”
However, new CEO Chris Brownridge, who assumed the role in late 2023, has reversed course. “We can respond to our client demand … we build what is ordered,” Brownridge stated.
The company will continue offering its iconic V12 engines, which remain a cornerstone of its heritage and appeal to discerning buyers who appreciate the distinctive sound and character. He noted the original pledge was “right at the time,” but “the legislation has changed.”
While not abandoning electric vehicles entirely, the Spectre remains in production, with an electric Cullinan option forthcoming; the decision marks the end of a strict all-EV timeline. Relaxed emissions regulations and slowing EV demand, evidenced by a 47 percent drop in Spectre sales to 1,002 units in 2025, forced the reconsideration.
It was a sign that perhaps Rolls-Royce owners were not inclined to believe that the company’s all-EV future was the right move.
Rolls-Royce joins a growing roster of automakers reevaluating aggressive electrification targets.
Fellow luxury brand Bentley has pushed its full electrification from 2030 to 2035, while continuing to offer hybrids and ICE models. Mercedes-Benz walked back its 2030 all-EV goal, now aiming for about 50% electrified sales while keeping combustion engines into the 2030s. Porsche has abandoned its 80% EV sales target by 2030, delaying models and extending hybrids.
Mainstream giants are following suit. Honda canceled its U.S. EV plans, including the 0-Series and Acura RSX, facing a $15.7 billion hit as it doubles down on hybrids. Ford and General Motors have incurred tens of billions in writedowns, canceling models and pivoting to hybrids amid an industry total exceeding $70 billion in charges.
This trend reflects a pragmatic shift driven by infrastructure gaps, consumer preferences, and policy changes. In the ultra-luxury segment, where emotional connection reigns, automakers are prioritizing flexibility over rigid deadlines, ensuring brands like Rolls-Royce evolve without alienating their core clientele.
News
Elon Musk teases expectations for Tesla’s AI6 self-driving chip
This optimistic timeline for tape-out—the stage where chip design is finalized before manufacturing—signals Tesla’s push to rapidly advance its silicon capabilities.
Tesla CEO Elon Musk is outlining expectations for the AI6 self-driving chip, which is still two generations away. Despite this, it is already in the plans of the company and its serial entrepreneur CEO, who has high expectations for it.
Musk provided fresh details on the company’s aggressive AI hardware roadmap, spotlighting the upcoming AI6 chip designed to supercharge Tesla’s self-driving tech, humanoid robots, and data center operations.
In a post on X dated March 19, Musk stated, “With some luck and acceleration using AI, we might be able to tape out AI6 in December.”
With some luck and acceleration using AI, we might be able to tape out AI6 in December
— Elon Musk (@elonmusk) March 19, 2026
This optimistic timeline for tape-out—the stage where chip design is finalized before manufacturing—signals Tesla’s push to rapidly advance its silicon capabilities.
The announcement builds on progress with the predecessor AI5. Earlier in January, Musk announced that the AI5 design was “in good shape” and “almost done,” describing it as an “existential” project for the company that demanded his personal attention on weekends.
He characterized AI5 as roughly equivalent to Nvidia’s Hopper class performance in a single system-on-chip (SoC) and Blackwell-level as a dual configuration, but at significantly lower cost and power usage.
Elon Musk is setting high expectations for Tesla AI5 and AI6 chips
Musk highlighted that AI5 “will punch far above its weight” thanks to Tesla’s co-designed AI software and hardware stack, making maximal use of every circuit. While capable of data center training tasks, it is primarily optimized for edge computing in Optimus robots and Robotaxi vehicles.
For AI6, Musk envisions substantial gains. “In the same half reticle and same process node, we think a single AI6 chip has the potential to match a dual SoC AI5,” he explained.
The company is targeting ambitious nine-month development cycles for future chips, allowing rapid iteration to AI7, AI8, and beyond. AI5/AI6 engineering remains Musk’s top time allocation at Tesla, with the CEO calling AI5 “good” and AI6 “great.”
Samsung is expected to manufacture the AI6 chips, following deals worth billions, while AI5 will leverage TSMC and Samsung production. These chips will form the backbone of Tesla’s Full Self-Driving system, enabling safer and more capable autonomy, alongside powering dexterous movements in Optimus bots and efficient inference in expanding data centers.
Tesla to discuss expansion of Samsung AI6 production plans: report
Musk has also restarted work on the Dojo 3 supercomputer project now that AI5 is progressing. Long-term plans include in-house manufacturing via the Terafab facility.
By accelerating chip development with AI tools, Tesla aims to reduce dependence on third-party GPUs and deliver high-performance, energy-efficient solutions tailored to its ecosystem. Success with AI6 could mark a major milestone in Tesla’s journey toward full autonomy and robotics leadership, though timelines remain subject to manufacturing realities.
Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry
Rolls-Royce makes shocking move on its EV future
