Tesla Clear Winner In 'Game Of Thrones' Battle Between UAW And Detroit's Big Three, Says Analyst
Portfolio Pulse from Shanthi Rexaline
The United Auto Workers union has gone on strike due to a lack of agreement on wage increases and benefits. Analysts have identified Tesla, Inc. as a potential beneficiary of the standoff between the union and Detroit's big three automakers - General Motors Corp., Ford Motor Co., and Stellantis N.V. The big three already pay workers 39% more than Tesla, and this gap is expected to increase. A 10-day strike could cost carmakers, suppliers, and workers over $5 billion. The strike could also delay the EV ambitions of GM and Ford.
September 15, 2023 | 6:18 am
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POSITIVE IMPACT
Tesla could benefit from the UAW strike as it could keep its prices low while the big three face increased labor costs.
Tesla's labor costs are significantly lower than the big three. If the UAW succeeds in getting a wage increase, the labor costs for the big three will increase, giving Tesla a competitive advantage.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
The UAW strike could increase labor costs for Ford and delay its EV ambitions.
The UAW strike could increase labor costs for Ford. This could delay its EV ambitions as it would have to allocate more resources to cover the increased labor costs.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
The UAW strike could increase labor costs for General Motors and delay its EV ambitions.
The UAW strike could increase labor costs for GM. This could delay its EV ambitions as it would have to allocate more resources to cover the increased labor costs.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
The UAW strike could increase labor costs for Stellantis.
The UAW strike could increase labor costs for Stellantis. This could affect its profitability and stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100