Tesla (TSLA:NSD), the electric vehicle maker led by Elon Musk, has come under fire from the German union IG Metall and politicians over allegations by workers at the company’s Brandenburg plant in Germany. The union, which has an office near the plant, stated that an increasing number of employees reported longer working hours with little free time and that workers were afraid to speak out about their working conditions due to non-disclosure agreements they were made to sign along with their work contracts. 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.”
In addition, the 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.
These reports come after Wired reported last month that Tesla is facing staffing issues at its German Gigafactory that are impacting its ability to meet targets, with workers leaving due to low and unequal pay as well as inexperienced management. It would be prudent for Tesla to address these issues and ensure that production is not disrupted, especially at a time when the company is already facing macro pressures and rising competition.
Despite these challenges, Wall Street is cautiously optimistic about Elon Musk Tesla stock, 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 a 94.6% upside potential. However, shares have declined more than 64% over the past year.
