The strike is over! So why are investors panicking? Despite the United Auto Workers finally approving contracts at all three of the Big Three automakers, each of their share prices are down in Thursday afternoon’s trading session. Some more so than others, but everyone’s on the decline. General Motors (NYSE:GM) was hit lightest, down just over 1.5%, while Stellantis (NYSE:STLA) was down a hair under 2%. Leading the way in the disaster derby, however, was Ford (NYSE:F), down over 2% in the session.
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Live trackers of UAW votes at all three companies showed that the contracts have, indeed, passed. The margins were narrowest at GM, where only 54.64% of the vote was in favor of the contract. Stellantis came in at 66.5%, and Ford came out only slightly higher at 66.7%. GM suffered from workers at large plants voting against the agreement, but the proliferation of smaller plants who voted yes turned the day in favor of the contract. Not surprisingly, UAW president Shawn Fain declared victory about as hard as he could, declaring that this was “…one of the most stunning contract victories since the sit-down strikes of the 1930s.”
The Strike is being Felt at Other Places
Interestingly, even as the UAW is about to return to work fully, the strike is already being felt at places that had little to do with it. For instance, at Toyota (NYSE:TM), Honda (NYSE:HMC), and Hyundai (OTHEROTC:HYMTF), factory worker pay has already been increased in a bid to try and keep the UAW out of their operations altogether. Similar results have been felt even at Tesla (NASDAQ:TSLA) at its German plant, where the UAW has no presence at all. Apparently, Elon Musk et al. would rather keep it that way, even as a different union is already on the rise in Sweden.
Which Auto Stocks are a Good Buy Right Now?
Right now, Strong Buy-rated STLA stock is the laggard as far as upside potential goes. With an average price target of $25.54 per share, it offers a 27.41% upside potential. Meanwhile, GM stock is the leader here, as this Moderate Buy offers investors a 61.44% upside potential on its average price target of $44.71 per share.
