Tesla’s CEO, Elon Musk, has launched a Tesla nightclub exclusively for its employees in Berlin. The underground “rave cave”, complete with lasers, disco balls, and DJ, is situated beneath the German capital’s automotive giant’s manufacturing facilities.
We go into what led to the launch of the Tesla nightclub, the general public’s reaction, and employment law issues Tesla may face if they were based in the UK.
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New Tesla Nightclub: What Is It and Why Has It Been Launched?
The concept of the Tesla nightclub was first publicised by billionaire chief executive Elon Musk in 2020 on X/Twitter. The CEO generated a poll, in which he introduced the “mega-rave cave” idea, stating that this would include an “epic sound system and bass speakers as big as a car”. Of the 770,000 users who responded to the poll, more than 90% voted in favour of the plan to open a Tesla nightclub.
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It then was reported in 2022 that Elon Musk indulged in a “Berlin nightclub crawl” to celebrate the opening of the company’s Berlin-based factory. Yet some are now wondering whether this was, in fact, a work-related investigation to gather ideas for the creation of his own Tesla nightclub.
Club Crawl Leads to Opening of New Tesla Night Club
Now the so-called “Berlin-Brandenburg Gigafactory” has its own basement nightclub, with the unlikely name of “HAMSTER”. Announcing the launch on LinkedIn, factory manager Andre Thierig wrote: “Giga Berlin rave cave (aka HAMSTER) now alive! Party on…”
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The Tesla nightclub’s opening hours are not yet clear, although a video showing employees walking along the club’s futuristic entrance corridor has already gone viral on social media. It is being showcased as the ultimate employee benefit that “represents an innovative approach to employee well-being”. Yet not everyone is on board!
Elon Musk’s New Nightclub Called ‘World’s Dweebiest Nightclub”
News of the Tesla nightclub’s launch has received mixed reactions from the general public. The techno culture of Germany’s capital is renowned around the world, and some think it is only natural for Berlin-based businesses to follow the trend.
Many locals, on the other hand, appear to be resentful. By opening what has been dubbed the “world’s dweebiest nightclub”, they see this as an attempt to capitalise on a significant part of Berlin’s heritage.
A Tale of Two Clubs: Elon Musk and Berghain
A popular Instagram account, Berlinclubmemes, has been particularly outspoken on the topic, frequently highlighting the irony of a techno club attended by technology workers.
One such post suggested that Elon Musk decided to open the “rave cave” after being refused entry to Berghain, one of Berlin’s top night clubs. Musk did post about the infamous Berghain once, stating that he was outside but refused to enter.
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These posts seem to be evincing similarly negative responses from users. Artist Adam Ghebremichael commented, “If the first place you announce a club is on LinkedIn it’s definitely not a club you want to visit.” Other Berlin-based users responded that HAMSTER would be a “club that people would be happy to be rejected from”.
Would Something Like the Tesla Nightclub Work in the UK?
The HAMSTER is effectively on workplace premises. It appears that Tesla will be encouraging their employees to visit HAMSTER to enjoy the ‘benefit’ offered.
Now typically, nightclubs and workplaces have next to nothing in common. The presence of loud music, alcohol, and a distinctly relaxed atmosphere in the former serve to make the two about as dissimilar as it is possible to be.
But as exciting as it may sound, a nightclub on site is unlikely to work in the UK legal landscape as it could raise several potential employment law issues. We ask Alex Hodson, Senior Associate at Redmans Solicitors, for her views.
Alcohol Consumption and Possible Unfair Dismissal Claims
In 2023, the Chartered Management Institute advised against serving large quantities of alcohol at work-related events. This was to try to discourage employees from displaying inappropriate behaviour whilst in a work environment. This includes sexual harassment, excessive alcohol consumption, and drug misuse.
Apart from inappropriate behaviour, there is a matter of professional relationships as well. Alex says, “There are chances of working relationships breaking down between employees. This could result in unfair dismissal claims, where the employer dismisses the employee, or the employee resigns.
Discrimination Due to Religion
Alex further adds that employees who do not partake in the enjoyment of the club – especially for religious reasons – could feel alienated. She adds, “They may feel that they are underappreciated and potentially, feel they are being treated less favourably because of their religion.
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If these claims are brought in the UK employment tribunal, this would be not easy to defend. In a UK landscape, encouraging employees to take part in a benefit such as this, is a significant risk of inappropriate behaviour taking place regularly (as is seen frequently in nightclubs).
Tesla Nightclub Policies: Employees May Need More Guidance
Tesla will need to be mindful of its legal duty to protect the health, safety, and welfare of its employees whilst providing this employee benefit. No doubt, they will be looking to put detailed policies in place to ensure employees understand what is and is not acceptable.
Additional actions may include:
- Providing training to raise awareness on these subjects,
- Conducting regular screening tests of employees to check for the presence of drugs and/or alcohol during work hours, and
- Supporting employees who may be struggling with drug or alcohol abuse
Such support might include discussing problems directly with employees and signposting them to external services which could provide further assistance.
Overall, if this was in the UK, this would be a highly risky benefit to offer employees and would likely significantly increase in employment tribunal claims for the company.