Tesla set to pop the champagne as UAW strikes against Ford, GM, Stellantis
The United Auto Workers’ strike eventually happened. The strike, combined with a few other headwinds, has sent General Motors stock price close to where it was five years ago. It's true that all the big three automakers will be negatively impacted by the strike. GM is in a worse position to absorb the impacts and thus has a lower potential for price rebound.
Tesla (TSLA) is the clear winner of the United Auto Workers strike against the big three automakers as the “potential” nightmare situation kicks off, according to Wedbush.
“Our worry is this could be a long and nasty strike which would be an absolute debacle for the Detroit Three,” Wedbush analysts led by Dan Ives wrote in a note.
“Take this UAW deal on the table and the business models in Detroit are not sustainable/profitable...a very frustrating quagmire situation as [GM CEO] Barra and [F CEO Jim] Farley have done a great job transforming the stalwarts and ready for the EV transformation and now the UAW [is] like a meteor in the eyes of the Street.”
The clear winner in this Game of Thrones Battle is Elon Musk and TSLA with “champagne now on ice” thanks to its position as a non-union shop.
Its biggest EV competitors now face mounting costs and complexities in the years ahead depending on how this plays out, Wedbush said. It doesn’t help that EV prices are rising as competition mounts.
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