Tesla CEO Elon Musk is no fan of unions, but he may be quietly rooting for Sean Fein these days. The leader of the United Auto Warriors shows no sign of backing down from the Detroit Big 3. He pushes A “brave” contract is required. About 146,000 UAW workers could go on strike Friday if a deal is not reached.
This helps Tesla at a time when traditional automakers are making a big push toward electric vehicles.
If a strike occurs, the final production and EV roadmap could be pushed out to 2024, and delays at this crucial time for GM, Ford and Stellar” Wedbush analyst Dan Ives He wrote In a research note. Tesla is well positioned to benefit from any strike against its rivals, he said.
“I think this is going to be the hardest and most dramatic strike in 50 years,” said Eric Gordon, a business professor at the University of Michigan. They spoke WNEM Barclays analyst Dan Levy on the other hand It is called “It’s very possible,” Adma said.
In addition to slowing down Detroit’s automakers, the strike will hurt their bottom lines. A 10-day strike on GM, Ford and Stellar would cost them nearly a billion dollars. according to Anderson Economic Group.
While Detroit automakers had about 2 million vehicles on hand at the end of July, “a layoff of three weeks or more will quickly deplete excess supply, drive up vehicle prices and push additional sales to non-union products,” said analyst Sam Fiorani. They spoke Associated Press.
One of those brands is Tesla.
Musk has taken a strong stance against organized labor. Tesla workers earn about $45 an hour in wages and benefits, while three workers represented by the UAW in Detroit earn between $64 and $67 an hour. according to Reuters reports that the gap gives Tesla a competitive advantage as it has different manufacturing strategies and does not have to share profits with dealers.
A panel of three judges in March Purchased Mook illegally threatened workers with the loss of stock options if they chose union representation. A federal appeals court said in July. He will re-evaluate The verdict.
The origin of the case It was 2018. Twitter In it, Musk wrote: “There is nothing stopping the Tesla team in our car from the Electoral Alliance. You can tmrw if you want. But why pay union dues and give up stock options for nothing? Our safety record is 2X better than when the plant was UAW and everyone already gets health care.
In February, workers at the Tesla factory in Buffalo They were fired Workers United said the termination was illegal retaliation shortly after the union began organizing. Tesla denied this in writing On her blog He has already decided to fire the workers due to poor performance.
Tesla has pressured other automakers with dramatic price cuts this year. He annoys his customers Tesla bought or sold used vehicles at high prices in the weeks or days before the decline and suddenly lost value.
Detroit’s big automakers are also a concern. EV rivals are emerging in China. And shipping to Europe and elsewhere – although not yet to America. “The Chinese are going to be powerhouses,” Ford CEO Jim Farley said at a financial event in May.
Ford Executive Chairman Bill Ford Jr. Added In June, “They are not here, but they will come here … and we have to be ready.”
Tesla may be more prepared than its Detroit rivals — and no strike is on the horizon.
This story is featured in the beginning Fortune.com
More from Fortune:
5 side businesses that can make you over $20,000 a year – all while working from home
Want more for your money? These 14 savings accounts have 5% APY (and higher) rates
Buying a house? Here’s how much you save
How much money do you need to earn a year to comfortably buy a $600,000 home?