Elon Musk-led Tesla (NASDAQ:TSLA) has been slammed by the German union IG Metall and politicians over allegations by workers at the EV maker’s Brandenburg plant about unreasonable working hours and suppression of free speech. At its annual news conference, IG Metall said that an increasing number of employees reported longer working hours with little free time, per Reuters.
IG Metall, which has an office near the plant, stated that it is in regular touch with the workers at Tesla’s German Gigafactory. Workers told the union that they were scared about discussing their working conditions due to the non-disclosure agreements they were made to sign along with their work contracts. Reportedly, Tesla China has also asked some workers to sign non-disclosure agreements.
Irene Schulz of IG Metall Berlin-Brandenburg-Sachsen said, “Tesla is not doing enough to improve working conditions and is leaving too little time for leisure, family and recovery.”
Meanwhile, German business newspaper Handelsblatt reported that local politicians have expressed concerns about workers’ plight and are demanding inquiries both by Tesla and the local government. “The state government of Brandenburg must enforce occupational safety through close controls at Tesla,” stated Christian Baeumler of the Christian Democrats.
Last month, Wired reported that Tesla is facing staffing issues at its German Gigafactory that are impacting its ability to meet targets. Workers are exiting due to low and unequal pay as well as inexperienced management. Overall, it would be prudent for Tesla to address the issues of disgruntled workers and ensure that production is not disrupted at a time when the company is already facing macro pressures and rising competition.
Is Tesla Stock a Buy, Sell, or Hold?
Wall Street is cautiously optimistic about Tesla, with a Moderate Buy consensus rating based on 20 Buys, nine Holds, and three Sells. The average TSLA stock price target of $238.14 implies 94.6% upside potential. Shares have declined more than 64% over the past year.
