Here is your weekly Pro Recap of the past week's biggest headlines in the electric vehicle space: Tesla faces Nordic union troubles; F-150 Lightning production cut in half; and Tesla’s massive recall.
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Tesla's Union woes escalate
Tesla (NASDAQ:TSLA) continues to grapple with escalating union issues in the Nordic countries.
Danish 3F union members pledged support to Swedish mechanics striking against the electric automaker. The Danish union is now refusing to unload Tesla vehicles bound for Sweden at Danish ports, aiming to disrupt Tesla's efforts to bypass a Swedish blockade that has persisted for several weeks.
Moreover, Sweden's Transport Workers' Union plans to halt waste collection at Tesla locations starting December 24, unless Tesla agrees to a collective bargaining agreement with IF Metall.
On top of the labor strikes, a group of Norwegian pension funds sent a letter to Tesla urging the EV company to respect collective bargaining for its employees.
Tesla has attracted criticism from unions and several pension funds in the area due to its rejection of the Swedish mechanics' request for collective bargaining rights.
Adding financial weight to this, several of the pension funds, including KPL and PFA, hold significant shares in Tesla, further complicating the situation.
Despite these challenges, TSLA shares ended the week up 4.79%.
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Ford Slashes F-150 Lightning Production
In a surprising move, Ford Motor Company (NYSE:F) disclosed plans to slash production of its F-150 Lightning electric pickup truck by half in 2024.
Citing shifting market demand as the primary reason, the decision aligns with the wider auto industry's scale-back on electric vehicle commitments due to slower sales growth.
The decision comes at a time when the whole sector is scaling down its commitment to electric vehicles due to slower-than-expected sales growth, and arrives despite the F-150 Lightning achieving a remarkable surge in sales, setting a new monthly record in November with a sales spike of 113%.
The F-150 Lightning electric pickup truck competes directly with Tesla's freshly launched Cybertruck, boasting a significantly lower starting price at $49,995 compared to Cybertruck's $79,990 tag.
Shares of F ended the week up 8.06%.
Tesla's massive recall
In a significant blow, Tesla faced a mandatory recall of more than 2 million vehicles in the U.S. due to issues identified in the Autopilot system by the National Highway Traffic Safety Administration (NHTSA).
According to the agency, the investigation found flaws in the systems method of ensuring driver attentiveness, raising concerns about potential misuse and safety risks.
The recall affects the 2012-2023 Model S, 2016-2023 Model X, 2017-2023 Model 3 and 2020-2023 Model Y vehicles equipped with all versions of Autosteer and follows a two-year NHTSA investigation into crashes involving the Autopilot system.
Tesla's proposed solution involves software updates aimed at enhancing driver alerts, refining user engagement, and ensuring the Autopilot's appropriate usage.
According to the documents, the company will send out an over-the-air software update to fix the problems.
Despite the U.S. recall, Dutch vehicle authority, RDW announced Friday that there are no immediate plans for a recall in Europe.
RDW highlighted variations in Autopilot functionalities between the European and U.S. markets. The agency confirmed ongoing communication with Tesla regarding this matter.
