Tesla Giga Berlin's future uncertain as Musk warns on union influence

Michael Powers, Editor

08:15 28-02-2026

Just days before the works council elections at the Giga Berlin factory, Elon Musk delivered a tough message to employees. He stressed that Tesla does not plan to close the plant, but hinted that further production expansion could be in doubt.

This statement comes amid tense relations with the IG Metall union, which holds 16 seats on the current council but lacks a majority. Musk made it clear that increased influence from external organizations could complicate the company's strategic decisions.

The situation unfolds against a backdrop of Tesla's European sales falling 28% in 2025. Meanwhile, Giga Berlin is producing more cars than the company can sell in the current market. Last year, the plant already cut around 1,700 jobs, despite official statements denying mass layoffs.

At the same time, Musk called the facility 'exceptional' and noted growth in battery cell output, along with plans to increase Model Y production once regulators approve Full Self-Driving features.

Now, nearly 11,000 employees will decide the works council's composition, and their choice could directly impact Tesla's investment plans in Germany. For the company, this is not just an internal personnel matter but a strategic factor in its European business development.