The Swedish union IF Metall is calling off its strike against Tesla after over 1,000 days. Tesla managed to avoid signing a collective agreement by offering severance packages to the remaining striking mechanics. Since enough workers took the buyouts, the union has no one left to represent. Sympathy strikes from dockworkers and the postal service are also wrapping up. Tesla took this route to avoid setting a precedent for collective agreements in Europe, especially with their margins getting squeezed. Q2 operating margins dropped to 1.4% from 4.1% last year, and operating expenses are up 47% as they spend heavily on AI and new manufacturing. They didn't want to get locked into higher labor costs or lose flexibility as they retool factories. There was a visible cost to holding out. Tesla registrations in Sweden dropped 67% in 2025, driven by a mix of the labor dispute and general backlash against Musk. Overall they kept the cost structure they wanted, but it took a heavy toll on their sales in the Swedish market.