TSLA - Is The Ford-UAW Deal The End For Tesla? | Benzinga
Ford Motor Co (NYSE: F) has reached a tentative new labor agreement with the United Auto Workers (UAW), while General Motors Co (NYSE: GM) and Stellantis NV (NYSE: STLA) continue negotiations.
The new deal by Ford could hold lasting implications for Tesla Inc. (NASDAQ: TSLA) and its current advantages in the automotive industry.
What Happened: Ford and the UAW reached a tentative agreement on Wednesday which increases the top wage rate by more than 30% to over $40 an hour, including cost of living increases. Ford workers will receive an immediate 11% wage increase upon ratification of the agreement, and further increases will follow over the course of the four-year term of the contract.
General Motors and Stellantis have yet to reach agreements with the UAW, though talks continue.
Why It Matters: Days after the UAW strikes began, Wedbush analyst Dan Ives wrote, "The clear winner in this 'Game of Thrones' Battle between the UAW vs. GM/Ford is Musk and Tesla. Its biggest potential EV 313 competitors now face mounting costs/complexities in the years ahead depending on how this ultimately plays out."
Ford’s new labor agreement with the UAW will increase costs for the automaker, and while GM and Stellantis continue negotiations, increased production costs are nearly guaranteed.
Joel Levington, director of ...