By Shares of electric-vehicle (EV) makers are seeing gains amid the recent strike by the United Auto Workers (UAW) union at plants belonging to the Big Three legacy automakers. Tesla Inc., the market leader in EVs, is benefiting from the labor troubles faced by General Motors Co., Ford Motor Co., and Stellantis N.V. Meanwhile, GM shares have slipped slightly, Ford’s stock has experienced a loss, and Stellantis shares have seen a slight increase.
The strike comes at a critical time as these automakers have been actively expanding into the EV market. However, the higher costs and disruptions in production resulting from a prolonged strike could weaken their efforts. Notably, workers at the Big Three automakers already receive about 38% higher wages compared to Tesla’s nonunion workforce.
Wedbush analyst Dan Ives suggests that if the strike continues for an extended period (four weeks or more), it could potentially delay production and push back the EV roadmap until 2024. Consequently, delays could hinder the crucial period of EV execution for GM, Ford, and Stellantis.
It’s not just Tesla that stands to benefit from the UAW strike. The Global X Autonomous & Electric Vehicles exchange-traded fund (DRIV) has seen a 0.4% rise in anticipation of market opening. On the other hand, futures for the S&P 500 index have slipped slightly.
Other U.S.-based EV manufacturers are also enjoying increases in their stock prices. Nikola Corp. shares have shot up significantly, while Rivian Automotive Inc., Workhorse Group Inc., Fisker Inc., and Mullen Automotive Inc. have also experienced gains.
Chinese EV makers are not left out of this upward trend. Stocks of Nio Inc., XPeng Inc., and Li Auto Inc. have all seen positive movement.
Overall, the UAW strike appears to have sparked optimism among investors in the EV sector, with many companies seeing gains in their stock prices.
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