Tesla Inc (NASDAQ:TSLA) shares are down about 6% this week despite the electric vehicle (EV) maker being seen as a “clear winner” in the United Auto Workers (UAW) union strikes against the Detroit Three carmakers Ford Motor Company (NYSE:F), General Motors Company (NYSE:GM) and Stellantis NV (NYSE:STLA, EPA:STLA).
Analysts at Wedbush earlier this week wrote that both Ford and GM were fighting an uphill battle to attempt to gain traction in the EV market while trying to satisfy union demands when facing non-unionized Tesla.
Should the auto workers strike last four weeks or longer, Ford and GM could see their EV roadmaps pushed into 2024 and could see billions in incremental costs should the union’s demand be met, the analysts noted.
But there are now concerns that Tesla is the next big union target in the United States.
It is currently the only major American auto manufacturer not represented by a union, despite years of efforts from the UAW.
The company also continues to face increased competition in the EV space, which has put its shares under pressure.
Chinese firm NIO on Thursday unveiled a smartphone that can self-drive cars, an attempt to get one-up on its competitors including Tesla, BYD, and Geely.
Tesla stock was down 2% at US$257.59 on Thursday afternoon. Should the stock close below $260, investors could see further declines.
Ford shares were down 1% at US$12.24, GM was down 0.8% at US$32.95, and Stellantis had shed 1.4% at US$19.40.
Contact the author at emily.jarvie@proactiveinvestors.com
Follow her on Twitter @emilyjjarvie
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