Elon Musk warns Tesla employees over future of German megafactory ahead of union election

• Elon Musk said the future of Tesla's German gigafactory is under threat from "outside organizations."
• His comments come ahead of crucial union elections next week at Giga Berlin.
• Musk told employees that Giga Berlin wouldn't expand if outsiders gained control.

Tesla's sales in Europe are plummeting — and now Elon Musk has a warning for employees at the company's German megafactory ahead of crucial union elections.

In an interview with Giga Berlin senior director Andre Thierig posted on X on Thursday, Musk said Tesla would "ideally" expand its only European gigafactory and start production of its battery cells, Cybercab robotaxi, and Optimus robot at the site.

Asked if he had any advice for the team at Giga Berlin to work toward that vision, Musk said any expansion was contingent on Tesla being free from interference from "outside organizations."

"Things certainly get harder if there are outside organizations who are pushing Tesla in the wrong direction," said Musk.

"It's difficult to say that then we would expand, if we had outside organizations who were making things very difficult. We're not going to shut down the factory, but we wouldn't expand it either," said the Tesla CEO.

The billionaire's comments come ahead of a crucial vote at Tesla's German factory next week, with powerful German union IG Metall pushing to gain control of the site's work council — an elected body of employees required by local laws that negotiates pay deals and working hours with management.

German publication Handelsblatt first reported Musk's comments, which it said were screened for employees on Wednesday.

Tesla clashes with union

The run-up to the election has been marked by fierce disputes between the union and Tesla's executives. Earlier this month, Tesla filed a criminal complaint against an IG Metall representative, accusing them of secretly recording an internal meeting.

IG Metall, which has frequently clashed with Tesla over working conditions at Giga Berlin over the past few years, denied the allegation and responded with its own complaint accusing Thierig of defamation. The union said Thursday that both sides had agreed on a truce ahead of the works council elections.

The debate over Giga Berlin's future comes as Tesla's sales in Europe have collapsed. The US automaker saw registrations of its EVs fall nearly 38% in the EU last year, as it was hit by backlash over Musk's political interventions and backing of German far-right party AfD.

In January, Tesla's European sales dropped to just 8,000 units, according to data from the European Automobile Manufacturers Association, less than half the number sold by Chinese rival BYD.

Musk also said in the interview that Tesla expects to receive approval to sell Full-Self-Driving driver assist technology in the Netherlands on March 20.