Danish labor strike against Tesla halts shipments to Sweden

Tesla (TSLA) labor disputes in Europe have now expanded to Denmark with Denmark's 3F labor union announcing on Tuesday that it will support striking Swedish mechanics by refusing to transport Tesla vehicles to Sweden. Recently, Tesla CEO Elon Musk sat down with CNBC's Andrew Ross Sorkin at the New York Times DealBook Summit and expressed his opinion on unions: "I disagree with the idea of unions... I don't like anything that creates a lord and peasants sort of thing."

Yahoo Finance Anchors Rachelle Akuffo and Akiko Fujita break down the latest development for the EV maker.

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Video Transcript

[THEME MUSIC]

RACHELLE AKUFFO: It's time now for our Chart of the Day. Looking at Tesla's labor disputes expanding, now escalating in Denmark, with the country's largest labor union, saying it will pause shipments of vehicles to Sweden in support of those striking workers. Now, union membership in both Sweden and Denmark are among the highest in Europe. And cross-border strikes are not unheard of in the Scandinavian labor market.

And we know that when we first saw obviously, the separate UAW strikes in the US, we wondered you know, could Tesla be a beneficiary here? But a different set of issues when it comes to the unions in Europe. And we heard Elon Musk previously say, look, if we end up having these different shops end up unionizing, he basically said it's their fault.

But it's interesting that, I mean, when you look at the Swedish arm, this union, they've already been on strike for six weeks. So then to see this momentum with Denmark, it'll be interesting to see how much broader this goes.

AKIKO FUJITA: Yeah, certainly points to the challenges of operating as a global company. It's not just about avoiding unions in the US because Tesla is not a union shop, but also having to go with some of those union movements in other countries as well.

Incidentally, we should point out that if, in fact, they aren't able to import through some of these Scandinavian countries, they'd have to do it through Germany, which is a five-hour drive, as I understand it. So that's an additional step for the company. Certainly something they want to try and avoid. But one movement that we're going to be watching very closely.

Advertisement