(Bloomberg) -- Tesla Inc. has been effectively blocked from delivering new cars to its customers in Sweden after the electric vehicle maker lost an appeal against the country’s postal service.

The legal ruling against Elon Musk’s company means it cannot receive license plates intended for new EVs, making it difficult for customers in its fifth biggest European market to legally drive Teslas on the roads. Postal workers in Sweden are refusing to handle any Tesla-related mail in sympathy with a walkout by repair-shop mechanics that began Oct. 27.

The dispute over collective bargaining rights in Sweden has already spread to dockworkers in neighboring Finland, Denmark and Norway, upending deliveries in a regional market that is bigger than Germany. The carmaker’s aversion to the so-called “Nordic Model” of labor rights has even irked institutional investors including Nordea Bank Abp and Danske Bank A/S, who have written to Musk demanding a change of stance.

Sweden’s appeal court said the postal service “can’t get the industrial action to end and its stance of respecting legal industrial action does not constitute sabotage,” according to documents seen by Bloomberg News. Any approval of Tesla’s demands would risk infringing the employees’ right to take action, it added. 

Tesla’s European spokesperson did not immediately respond to a request for comment. The company has until Jan. 18 to challenge the court ruling.

The decision follows a similar setback in another lawsuit brought by Tesla, which is suing Sweden’s Transport Agency over the delivery of license plates. Last week, a court temporarily ruled the carmarker couldn’t collect the license plates directly from the company that makes them. 

Read More: Musk Pits Scandinavia’s Love of EVs Against Its Union Tradition

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