Tesla (NASDAQ: TSLA) stock rose on Wednesday following news that a Swedish union decided to exclude some Tesla vehicles from a strike targeting the electric vehicle maker since October.
On Wednesday, the Swedish labor union IF Metall announced that it would permit its mechanics to repair certain Tesla cars at independent workshops. This exemption, valid for ten weeks, arises amidst a strike targeting the electric vehicle maker since October.
Tesla is encountering challenges in the Nordic nations as influential employee unions, supported by Swedish IF Metall’s mechanics, initiated a strike on October 27, pressing for a collective agreement with the company.
Reuters received information from IF Metall that between February 19 and April 30, workshops not associated with Tesla have permission to repair Tesla cars. The union estimates that this temporary break will affect anywhere from 100-200 cars.
However, the relaxation of the strike will only apply to cars that have sustained severe damage, rendering them undrivable, and which are already present in the affected workshops.
A spokesperson for IF Metall explained the move, stating,
“It’s to alleviate the pressure on private customers who are not involved in this conflict and to offer a small compensation to the workshops – many of which have a collective agreement.”
According to the union, this strike is one of the longest by IF Metall in modern times.
Tesla (NASDAQ: TSLA) Stock Reaction
TSLA stock climbed 2.55% to close at $188.71 on Wednesday. The traders had exchanged hands with 80,339,385 (80.33 million) shares compared to the average daily trading volume of 114.36 million.
