Tesla Inc.'s EV moat would widen as the Ford, GM and Stellantis face labor strife.
A United Auto Workers strike comes at a time when the Big Three U.S. automakers are struggling with the transition to electric vehicles, with Tesla Inc. emerging as a potential beneficiary of the labor strife.
Telsa’s stock TSLA, -0.44% rose 0.9% in premarket trading Friday, while Ford shares lost 1.9%, GM’s stock fell 1.1% and Chrysler-parent Stellantis’ shares ticked up 0.5%. The EV maker is likely to emerge as “the winner from the labor talks,” Gene Munster, a managing partner at Deepwater Asset Management, said in a note Thursday.
But even before any wage increases resulting from the potential strike, the Big Three were paying their workers 38% more than comparable Tesla workers, and that gap is likely to increase, Munster said. While workers are unlikely to get as big of a raise as they are demanding, the new UAW contract could result in pay increases of as much as 20%, Moody’s said.
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