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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.
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Tesla ramps production of its ‘new’ models at Giga Texas
The vehicles are being built at Tesla Gigafactory Texas in Austin, and there are plenty of units being built at the factory, based on a recent flyover by drone operator and plant observer Joe Tegtmeyer.
Tesla is ramping up production of its ‘new’ Model Y Standard at Gigafactory Texas just over a week after it first announced the vehicle on October 7.
Earlier this month, Tesla launched the Tesla Model 3 and Model Y “Standard,” their release of what it calls its affordable models. They are priced under $40,000, and although there was some noise surrounding the skepticism that they’re actually “affordable,” it appears things have been moving in the right direction.
The vehicles are being built at Tesla Gigafactory Texas in Austin, and there are plenty of units being built at the factory, based on a recent flyover by drone operator and plant observer Joe Tegtmeyer:
News: the @Tesla Model Y Standard production is well underway at Giga Texas today!
This consistent with what I was told to expect during the unveiling day last week!
The outbound lot had many Premium Model Y’s and @cybertruck too!
More coming soon! pic.twitter.com/WU489QKPLB
— Joe Tegtmeyer 🚀 🤠🛸😎 (@JoeTegtmeyer) October 16, 2025
The new Standard Tesla models are technically the company’s response to losing the $7,500 EV tax credit, which significantly impacts any company manufacturing electric vehicles.
However, it seems the loss of the credit is impacting others much more than it is Tesla.
As General Motors and Ford are scaling back their EV efforts because it is beginning to hurt their checkbooks, Tesla is moving forward with its roadmap to catalyze annual growth from a delivery perspective. While GM, Ford, and Stellantis are all known for their vehicles, Tesla is known for its prowess as a car company, an AI company, and a Robotics entity.
Elon Musk was right all along about Tesla’s rivals and EV subsidies
Tesla should have other vehicles coming in the next few years, especially as the Cybercab is evidently moving along with its preliminary processes, like crash testing and overall operational assessment.
It has been spotted at the Fremont Factory several times over the past couple of weeks, hinting that the vehicle could begin production sometime next year.
Tesla could be greatly impacted in one of its strongest markets as the government is ready to eliminate a main subsidy for electric vehicles over the next two years.
In Norway, EV concentrations are among the strongest in the world, with over 98 percent of all new cars sold in September being electric powertrains. This has been a long-standing trend in the Nordic region, as countries like Iceland and Sweden are also highly inclined to buy EVs.
However, the Norwegian government is ready to abandon a subsidy program it has in place, as it has effectively achieved what it set out to do: turn consumers to sustainability.
This week, Norway’s Finance Minister, Jens Stoltenberg, said it is time to consider phasing out the benefits that are given to those consumers who choose to buy an EV.
Stoltenberg said this week (via Reuters):
“We have had a goal that all new passenger cars should be electric by 2025, and … we can say that the goal has been achieved. Therefore, the time is ripe to phase out the benefits.”
EV subsidies in Norway include reduced value-added tax (VAT) on cheaper models, lower road and toll fees, and even free parking in some areas.
The government also launched programs that would reduce taxes for companies and fleets. Individuals are also exempt from the annual circulation tax and fuel-related taxes.
In 2026, changes will already be made. Norway will lower its EV tax exemption to any vehicle priced at over 300,000 crowns ($29,789.40), down from the current 500,000, which equates to about $49,500.
This would eliminate each of the Tesla Model Y’s trim levels from tax exemption status. In 2027, the VAT exemptions will be completely removed. Not a single EV on the market will be able to help owners escape from tax-exempt status.
There is some pushback on the potential loss of subsidies and benefits, and some groups believe that the loss of the programs will regress the progress EVs have made.
Christina Bu, head of the Norwegian EV Association, said:
“I worry that sudden and major changes will make more people choose fossil-fuel cars again, and I think everyone agrees that we don’t want to go back there.”
With the loss of the $7,500 Electric Vehicle Tax Credit, it looks as if Tesla CEO Elon Musk was right all along.
As the tax credit’s loss starts to take effect, car companies that have long relied on the $7,500 credit to create sales for themselves are starting to adjust their strategies for sales and their overall transition to electrification.
On Tuesday, General Motors announced it would include a $1.6 billion charge in its upcoming quarterly earnings results from its EV investments.
Ford said in late September that it expects demand for its EVs to be cut in half. Stellantis is abandoning its plan to have only EVs being produced in Europe by 2030, and Chrysler, a brand under the Stellantis umbrella, is bailing on lofty EV sales targets here in the U.S.
How Tesla could benefit from the ‘Big Beautiful Bill’ that axes EV subsidies
The tax credit and EV subsidies have achieved what many of us believed they were doing: masking car companies from the truth about their EV demand. Simply put, their products are not priced attractively enough for what they offer, and there is no true advantage to buying EVs developed by legacy companies.
These tax credits have helped companies simply compete with Tesla, nothing more and nothing less. Without them, their products likely would not have done as well as they have. That’s why these companies are now suddenly backtracking.
It’s something Elon Musk has said all along.
Back in January, during the Q4 and Full Year 2024 Earnings Call, Musk said:
“I think it would be devastating for our competitors and for Tesla slightly. But, long term, it probably actually helps Tesla, that would be my guess.”
In July of last year, Musk said on X:
“Take away all the subsidies. It will only help Tesla.”
Take away the subsidies. It will only help Tesla.
Also, remove subsidies from all industries!
— Elon Musk (@elonmusk) July 16, 2024
Over the past few years, Tesla has started to lose its market share in the U.S., mostly because more companies have entered the EV manufacturing market and more models are being offered.
Nobody has been able to make a sizeable dent in what Tesla has done, and although its market share has gotten smaller, it still holds nearly half of all EV sales in the U.S.
Tesla’s EV Market Share in the U.S. By Year
-
- 2020 – 79%
- 2021 – 72%
- 2022 – 62%
- 2023 – 55%
- 2024 – 49%
As others are adjusting to what they believe will be tempered demand for their EVs, Tesla has just reported its strongest quarter in company history, with just shy of half a million deliveries.
Will Tesla thrive without the EV tax credit? Five reasons why they might
Although Tesla benefited from the EV tax credit, particularly last quarter, some believe it will have a small impact since it has been lost. The company has many other focuses, with its main priority appearing to be autonomy and AI.
One thing is for sure: Musk was right.
Tesla ramps production of its ‘new’ models at Giga Texas
Tesla set to be impacted greatly in one of its strongest markets
Elon Musk was right all along about Tesla’s rivals and EV subsidies
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