Tesla files a lawsuit against the Swedish Transport Agency

Shares of Tesla Inc (NASDAQ: TSLA) are up 1.0% on Monday following news that the electric vehicle behemoth has sued the Swedish Transport Agency.

Here’s what Tesla argued in its complaint

Tesla filed the lawsuit after postal workers in the Scandinavian country blocked license plate deliveries to exhibit solidarity with workers that are currently on strike against the automaker over its refusal to sign a “collective bargaining agreement”.

In its complaint with the Norrkoping district court today, the Nasdaq-listed firm argued that the government should be made to abide by its “constitutional obligation to provide registration plates to vehicle owners”.

Last month, Tesla reported its financial results for the third quarter that came in shy of Street estimates. Its shares are currently down close to 20% versus their year-to-date high.

Demand for EVs have been slowing down

Note that Tesla Inc that Wall Street currently rates at “hold” on average filed a lawsuit against the postal service on Monday as well. Its filing also reads:

Neither Tesla nor an official of the Swedish government have so far commented on the news that arrives about a month after Global Holdings Inc cited higher repair costs and recent price cuts as it pulled back on plans of adding more electric vehicles to its rental fleet.

The higher for longer rates narrative is also eating into the demand for electric vehicles in 2023.