Tesla Giga Berlin is running at full capacity, but labor relations remain strained, and for the strangest reasons possible. 

A report from German outlet Handelsblatt has noted that the IG Metall union has recently been taking issue with the company’s bonus system, gifts for employees, and even health bars that were distributed to Giga Berlin workers.

Bonuses and symbolic disputes

IG Metall has long clashed with Tesla management over workplace policies, including disputes about home visits to employees on sick leave. The latest disagreements were focused on bonuses, with IG Metall reportedly arguing that Tesla must give bonuses to all employees, not just those with perfect attendance. The union also argued that red Tesla socks with the “Giga” logo, which were distributed to all employees last year, were inadequate, as noted in a CarUp report.

Even muesli bars have become a flashpoint for IG Metall after Tesla distributed them to staff when the factory reopened. Since the health bars were wrapped in blue packaging, the gesture was criticized by IG Metall, which is known as the red group in the works council. Union leaders reportedly saw the snack’s distribution as an insult, given the alignment of the “blue group” with management.

Production momentum

Despite these tensions, factory manager André Thierig has emphasized that operations remain strong. He told news agency DPA that “very good sales figures” have led Tesla to revise production plans upward for the third and fourth quarters. Giga Berlin, which employs around 11,000 people, continues to ramp its output of the Model Y and remains Tesla’s primary hub for European deliveries.

The recent complaints from IG Metall highlights the challenges that Tesla has been facing in balancing its rapid production growth with workplace relations in Germany, a country where labor unions wield significant influence. For now, production lines continue to run at full speed, though chances seem high that the IG Metall’s union’s complaints about Giga Berlin may continue to persist.

Tesla’s European sales are showing signs of recovery, with new data suggesting an upward trend in registrations across several key markets this quarter.

The trend suggests that Tesla’s decline in Europe this 2025 may have been driven primarily not by Elon Musk’s politics or consumers’ dislike of the brand, but by the unavailability of the Model Y, which had a changeover to a new version earlier this year.

Tesla Europe hints at recovery

Between September 8 and 14, Tesla registered 4,400 vehicles in 10 European countries, as per data aggregated by industry watchers. This suggests that Tesla has reached 63% of its August’s sales figures in the region in just two weeks, as noted in a CarUp report.

Tesla’s year-to-date sales in Europe remain down 33% year-to-date, with Sweden showing a notable 73% drop. By contrast, Norway is seeing strong momentum. Tesla has already matched its Q3 2024 sales in the country, and after 79 days of the quarter, Q3 2025 is shaping up to be its strongest yet. 

Across Europe, Tesla remains 11% behind last year’s Q3 levels but has climbed 11.3% compared to the previous quarter, suggesting a stabilization after months of declines. This also suggests that the alarming headlines from earlier this year, which hinted at Tesla’s demise in Europe due to Elon Musk’s politics in the United States, may have been overblown.

Giga Berlin boosts output

Tesla’s recovery in Europe is hinted at by Giga Berlin in Grünheide, which is preparing for stronger output through the rest of 2025. The facility has already produced more than 500,000 Model Ys and recently built 100,000 units of the new Model Y, as noted in a Trading View report. The factory supplies over 30 markets, including Europe, Canada, Australia, and the Middle East.

Plant manager André Thierig told European media that Tesla has revised production targets upward for the third and fourth quarters, citing “very good sales figures” in multiple regions. With this, it would not be surprising if Tesla’s sales figures in Europe see even more improvements over the coming months.

Tesla (NASDAQ:TSLA) received a bullish nod from Baird this week, with the firm upgrading the stock to “Outperform” on expectations that the company is positioned to lead in what it calls the “physical AI” era. 

Analyst Ben Kallo also raised Tesla’s price target to $548 from $320, noting that despite muted quarterly results, shares have gained 24% in the past month, outpacing the S&P 500’s 3% rise.

Long-term milestones

The Baird analyst shared his insights in a note to investors. “Relatively muted stock reactions following a series of less-than-stellar quarters and investor inbounds regarding long-term initiatives lead us to believe focus has increasingly shifted to the future for TSLA. We now expect shares to ‘Outperform’ as TSLA is increasingly viewed as the leader in physical AI,” the analyst wrote in his note.

Kallo also pointed to Tesla’s ambitious roadmap as a key reason for the upgrade, as well as the company’s new proposed compensation plan for CEO Elon Musk. The package ties rewards to ambitious milestones, including the delivery of 20 million vehicles annually, the deployment of 1 million robots and 1 million robotaxis, and 10 million Full Self-Driving (FSD) subscriptions. 

Vehicles, robots, and energy

Baird’s scenario analysis suggested that Tesla could reach a valuation of more than $5.5 trillion by 2035 in its minimum case, with potential upside to $12 trillion and $3,000 per share if milestones are exceeded, as noted in an Investing.com report.

Beyond Musk’s compensation framework, Baird highlighted multiple near-term catalysts for Tesla. These include potential updates on Optimus, the rollout of more affordable vehicles, new Robotaxi market entries, and an upcoming shareholder vote on Musk’s pay package. Expansion in Tesla’s energy storage and software businesses was also flagged as a growth driver. Kallo also described Tesla as having “lots of irons in the fire,” ranging from the scaling of the Semi to recurring revenue streams tied to software.