California vs. Germany: Tesla Battles With Itself

Alex Reale
· 3 min read
As
Tesla
CEO Elon Musk prepares to open a plant in Gruenheide, Germany, some differences of opinion are emerging. 
Will a brash, winner-takes-all Silicon Valley style align with a more staid, union-friendly German ethos? As a German town gears up for a descending-upon, locals are picking sides.
Can Tesla find as much success in Germany as it has in California?

Tesla faces possible culture clash in Germany

The imminent opening of a new Tesla factory is starting some interesting conversations about Tesla’s fit in the German business landscape.
Automotive News
reported that some leaders in the area are looking forward to the opening of the new plant while others are skeptical of Elon Musk’s corporate style. 
Germany is notorious for having robust corporate guidelines in place, and this may not align with a more seat-of-the-pants style that is typical of Silicon Valley companies like Tesla. Some local leaders are concerned with Musk’s lukewarm feelings on unions, and environmentalists are wary of the impact on the countryside.
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Unions, environmentalists in the mix

Tesla may have a leg up on its critics since it will be entering into familiar waters. According to Automotive News, Tesla flouted Germany’s strict labor and business guidelines back in 2017, after acquiring Grohmann Automation. Tesla didn’t set wages at the level union negotiators wanted, opting instead for a lower base, plus stock options and bonuses for employees. 
This neutralized the rising tension between Tesla and the unions for the time being, but with the new operation getting going, some local workers are still concerned about the labor implications of working for a more capricious employer. Tesla offers a pay structure with a distinctly Silicon Valley flavor, which doesn’t match typical German offerings. 
There are also many who are concerned about the environmental impact of a new plant. Musk has pointed out that a delay in building the factory is a delay in building more electric vehicles and working to curb the effects of climate change. This may be an oversimplification of the process, but it has been convincing enough to get the wheels turning on building this new plant.

A new factory might be an overall boon for the German economy

MORE: Elon Musk Says Tesla Is Finally Moving to Austin
There’s still an overall sense of optimism about Tesla’s plans. According to Reuters, Brandenburg's economy minister Joerg Steinbach said “I am fully convinced Tesla can have a positive effect on Germany."
In fact, it may even be a boon beyond German borders. Automotive News reported that Polish workers may find the benefits of working at the new Tesla plant attractive. The commute from the border is a paltry 45 minutes, and with good pay on the horizon, it’s highly likely that there will be lots of interest from workers from Poland. 
Tesla has not shed its Silicon Valley skin, and perhaps it never will. For now, the town of Gruenheide is preparing for an interesting new chapter.
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