EV major Tesla’s (NASDAQ: TSLA) CEO, Elon Musk, warned that major automakers including GM (GM), Ford (F), and Stellantis (STLA) could be driven to bankruptcy given the United Auto Workers (UAW) demands. The UAW workers are demanding a 40% wage hike and a 32-hour work week.
Musk said in a post on X, “They want a 40% pay raise and a 32 hour work week. Sure fire way to drive GM, Ford and Chrysler bankrupt in the fast lane.”
Musk also commented on President Biden supporting the workers’ demands and pointed out the rising wages will make “cars unaffordable, which leads to major sales drop, which leads to bankruptcy.”
Is Tesla a Buy Sell or Hold?
Many Wall Street analysts believe that Tesla, a non-union auto maker, could stand to benefit from this strike. Top rated Morgan Stanley analyst Adam Jonas stated recently that Ford’s suspension of work on its battery plant in Michigan “may be emblematic of the broader narrative around Detroit’s ability to compete” against Tesla and Chinese EV majors.
Jonas is bullish on TSLA with a Buy rating and a price target of $400, implying an upside potential of 63.9% at current levels.
Overall, analysts are cautiously optimistic about TSLA stock with a Moderate Buy consnesus rating based on 11 Buys, 12 Holds and four Sells.