STOCKHOLM/OSLO, April 10 (Reuters) - A strike by Tesla

mechanics in Sweden, among the country's longest labour

disputes, continues to disrupt operations, a union said on

Wednesday, and is drawing scrutiny from investors despite Elon

Musk saying the storm is over.

For months Tesla has been under pressure in the Nordics,

with sympathy actions since October backing Swedish IF Metall's

mechanics' demand for a collective agreement.

Postal workers, garbage collectors, repair centres, port

workers, electricians, and cleaners are among those that have

refused to handle Tesla business, forcing the company to find

alternative ways of running its operations.

"I think the storm has passed on that front," Musk, who has

been vocal about his opposition to unions, said on Monday in a

live chat on his social media platform X. "I think things are

reasonably good in Sweden."

The U.S. carmaker does not manufacture in Sweden, but its

electric vehicles are serviced there by more than 120 mechanics.

IF Metall says it remains in dispute with Tesla.

"The strike in Sweden is still very much ongoing, our

members are on strike," IF Metall spokesperson Jesper Pettersson

told Reuters, adding the union was considering ramping up

action.

"(Tesla) want to make an impression that business is as

usual for them, but we know - and they know - that that's not

entirely true."

Tesla did not immediately respond to a request for comment.

It has previously said its Swedish employees have as good, or

better, terms than those the union is demanding.

INVESTOR PRESSURE

Musk's comment on Monday came in response to a question from

the CEO of Norway's $1.6 trillion wealth fund, which owns 1% of

Tesla's stock and is its eighth-largest investor, LSEG data

shows.

The fund also raised the issue with Tesla chair Robyn

Denholm in March, it told Reuters.

In 2022, the fund backed a shareholder proposal asking Tesla

to adopt a policy on respecting rights to freedom of association

and collective bargaining.

"(We) will continue to follow up on our expectations," said a

fund spokesperson.

In December, some Nordic pension funds and other investors

sent a letter to Tesla voicing concern. One fund,

PensionDanmark, sold its shares in Tesla over the issue.

The ethics watchdog for four of Sweden's state pension

funds, with a combined Tesla stake worth 314 million euros at

end-2023, said this week it has discussed the strike with the

automaker.

The head of the AP Funds' Council on Ethics, Jenny

Gustafsson, told Reuters it had highlighted to Tesla how the

Swedish model of collective bargaining is "well established and

has provided stability and predictability in the Swedish labour

market".

DISRUPTING OPERATIONS

Tesla's Model Y remained Sweden's most sold car in the first

quarter of 2024. The group's overall registrations in the

country declined some 8% year-on-year in the January-March

period, broadly in line with the market, data from industry

association Mobility Sweden showed.

One union supporting IF Metall's strike said Tesla's

operations had still been affected.

"They have been forced to change their way of bringing cars

into Sweden and Tesla employees have to handle waste and garbage

themselves at the workshops," said Elin Lornbo of the Transport

Workers' Union, which is blocking the company from delivering

cars to Sweden by ship.

The transport union has said that it believes Tesla is

bypassing the blockade by bringing cars in on trucks or by

train.