A quick look at the share prices for the Big Three automakers—Stellantis (NYSE:STLA), Ford (NYSE:F), and General Motors (NYSE:GM)—makes it pretty clear just how the strike staged by the United Auto Workers is going so far. The answer, based on the red ink produced by all three in Tuesday afternoon’s trading, is not a welcome one for investors or for the larger economy.
While the talks themselves don’t seem to be going well, they are proving fertile ground for politicians seeking re-election. That’s right; we’re just over three months away from a new election year, and that’s brought President Biden himself out to swing a sign in favor of the striking UAW workers. Biden came out in favor of said auto workers, noting that he believed that “…the UAW gave up an incredible amount back when the automobile industry was going under.” Meanwhile, likely Republican candidate and former President Donald Trump will also hit Michigan to offer a speech to an audience that will include UAW workers.
In addition, Ford—which was spared the worst of the strikes—caught Shawn Fein’s ire over plans to halt construction on a new electric vehicle battery plant. Fein called it a “…shameful, barely-veiled threat by Ford to cut jobs.” Fein did, however, note that those jobs didn’t technically exist yet since the plant wasn’t even open to begin with. The political matter is a whole new wrinkle in an already complex campaign: with the strike now poised to serve as a backdrop in the first major battle of the 2024 race, Trump is out to reestablish support with unions, while Biden is eager to demonstrate that he was there all along.
What is the Best Automotive Stock to Buy?
While all three major automakers were down in Tuesday’s trading, some were down more so than others. Ford’s fractional loss helped this Moderate Buy stock maintain its 24.49% upside potential with its $15.53 average price target. Meanwhile, GM held its status as the strongest upside, as this Moderate Buy’s $50.53 average price target meant a 55.38% upside potential.