Tesla set to pop the champagne as UAW strikes against Ford, GM, Stellantis
Win McNamee/Getty Images News
Tesla (TSLA) is the clear winner of the United Auto Workers strike against the big three automakers as the âpotentialâ nightmare situation kicks off, according to Wedbush.
The strike kicked off today as General Motors (NYSE:GM), Ford (NYSE:F) and Stellantis (NYSE:STLA) failed to come to an agreement with the union by midnight.
âOur worry is this could be a long and nasty strike which would be an absolute debacle for the Detroit Three,â Wedbush analysts led by Dan Ives wrote in a note.
âTake 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.â
The clear winner in this Game of Thrones Battle is Elon Musk and TSLA with âchampagne now on iceâ 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 doesnât help that EV prices are rising as competition mounts.
âWe spent time in Detroit a few weeks ago and sense a âvery nervous timeâ across the auto industry as there is a lot riding on these negotiations and with the recent UPS union deal sealed this puts more pressure on the UAW leadership to deliver a big win,â Ives wrote.
The UAW wants a 40%-plus hourly pay increase, a reduced 32-hour work week, a shift back to traditional pensions and more. Anywhere near a 40% wage increase will be a major headwind on the cost front and ultimately in some way be passed down to the consumer and through EV prices.
Shares of the big three were mixed ahead of the open.

More on Ford Motor, General Motors, etc.

Compare metrics for F to GM, STLA
General Motors: An Undervalued Bet On The EV Market

Ford Motor Company (F) Management Presents at Morgan Stanley's 11th Annual Laguna Conference (Transcript)
Ford Motor: Automakers' Strike Deadline Creates A Long-Term Entry Point

General Motors Company (GM) Presents at Goldman Sachs Communacopia & Technology Conference (Transcript)
Ford: 3 Headwinds Keep Me From Buying
Ford: EV Warning Light Flashing
Ford: Failure Is Not An Option
Stellantis: Winning While Mr. Market Isn't Looking
UAW walkout: First ever simultaneous strike begins at Detroit Three
UAW eyes targeted strikes at auto plants in first wave of labor walkout
Deadline drama: UAW union prepares for 'never seen before' auto strike
Looking beyond an auto workers strike: Ford and GM land bull ratings at UBS
A major U.S. auto strike is two days away - here is the latest
Experts fear auto workers' strike could have major ripple effects, worse than 2019 strike