Nasdaq F Ford

EV (Electric Vehicle) giant Tesla ( NASDAQ:TSLA ) boasts of industry-leading margins, allowing it to aggressively cut the average selling price to sell more vehicles and maintain its leadership in the EV space. Now, with the  UAW (United Auto Workers) strike likely to drive up labor costs for its ICE (Internal Combustion Engine) peers, including General Motors ( NYSE:GM ), Ford ( NYSE:F ), and Stellantis ( NYSE:STLA ), Tesla will have more room to lower its prices and push volumes.  Last week, Ford Motor Company said the UAW’s proposals, if implemented, would more than double the company’s current UAW-related labor costs. Ford highlighted that its labor costs are already much higher than those of Tesla and other automakers who utilize non-union-represented labor. This will make it an uphill task for Ford, GM, and Stellantis to put up a fight against Tesla, as they are still in the early stages of the ICE to EV transition.  Echoing similar sentiments,  Wedbush analyst Daniel Ives, on September 15, said that he sees Tesla as one of the top beneficiaries of the strike. The production disruption and higher labor costs will make it tough for GM, Ford, and Stellantis to challenge Tesla’s leadership in the EV space. Ives is bullish about TSLA and has a price target of $350. Investors should note that Ives is the most accurate analyst for TSLA stock, according to TipRanks. Copying his trades on TSLA stock and holding each position for one year could result in 70% of your transactions generating a profit, with an average return of 14.76% per trade.  As Tesla maintains its EV leadership, let’s look at what the Street recommends for its stock. Is Tesla Share a Buy or Hold? Per analysts’ consensus estimate, Tesla stock is a Hold. Even though Tesla is in an advantageous position compared to its peers, there’s too much uncertainty regarding TSLA’s margins, noted  Needham analyst Chris Pierce.  In a note to investors dated September 12, Pierce wrote, “TSLA's strategic differentiation vs mass-market OEMs has compressed, with TSLA embracing discounting as a lever.” The analyst has a Hold recommendation on Tesla stock.  Including Pierce, TSLA stock has received 12 Hold ratings. Further, it has 11 Buy recommendations, while five analysts recommend a Sell. Analysts’ average price target of $270.80 is about 1.3% lower than current levels. Bottom Line Tesla’s focus on driving volumes through price cuts could pressure its peers to follow suit, thus affecting their profitability. Moreover, its ICE peers are already grappling with higher costs, making it challenging for them to chip away at Tesla’s market share. Further, Tesla is focusing on reducing the cost of manufacturing and, over time, expects its hardware-related profits to be supported by the acceleration of software-related gains, thus enabling the company to maintain its leadership in the EV space.  However, investors should be cautious as near-term pressure on margins and the year-to-date price gains could keep Tesla stock volatile. Disclosure

The global chip sector is stealing the spotlight from major central banks, after the world's top contract chipmaker raised concerns over demand, hitting share prices of semiconductor stocks.

The United Auto Workers strike against the Detroit Three automakers entered its third day on Sunday with no immediate resolution on the horizon.

The United Auto Workers strike against the Detroit Three automakers is set to enter its third day Sunday with no immediate resolution on the horizon.

General Motors ( NYSE:GM ) is in the news due to a major controversy. It’s a United Auto Workers (UAW) strike, and many investors are concerned, but this shouldn’t deter you from considering a share position in General Motors. In fact, I am actually bullish on GM stock because it presents terrific value right now. General Motors is an iconic American automaker that also offers electric vehicles but is famous for its powerful trucks. Controversial issues have come and gone over the years, but General Motors has stuck around and sold plenty of vehicles. Still, when a crisis strikes, there’s no shortage of folks on social media who would declare the untimely end of General Motors as a going venture. I believe it's best to stay calm and relax and conduct your due diligence on General Motors, even if the headlines might shake some jittery investors out of a perfectly reasonable trade. The Auto Workers Strike Begins Some commentators might call this a historic moment. There have been auto worker strikes before, but this one is on a massive scale, and it’s targeting the so-called Detroit Three: General Motors, Ford ( NYSE:F ), and Stellantis ( NYSE:STLA ). Here’s the lowdown. Starting Thursday night, workers represented by the UAW officially went on strike because the three aforementioned Detroit car companies were unable to reach an agreement with the union. It’s considered a historic event because this marks the first time in the UAW’s 88-year history that it has gone on strike against all three Detroit car companies at the same time. Some GM stockholders are nervous for a few different reasons. First of all, this is a large-scale workers’ strike; approximately 12,700 workers, in total, went on strike across three Detroit production plants. Furthermore, the scale of the protests could grow, as UAW President Shawn Fain warned that if negotiations continue to stall, workers at more plants may go on strike. Analysts with Evercore ISI certainly haven’t helped to calm skittish GM shareholders down. The analysts warned that the “companies’ pickup-truck plants are likely the next target of the United Auto Workers union.” Additionally, the Evercore ISI analysts reportedly predicted that the UAW strike “could hit max pain” for the automakers if that happens since SUVs and pickup trucks are their most profitable vehicles. Chill Out, and Focus on Value Amid the apparent headline risk, GM stock remained surprisingly flat yesterday. What could possibly explain the market’s calm response to a historic strike? Always remember that the financial markets are forward-looking. This explains, for example, why the stock market can march upward even while the Federal Reserve is hiking interest rates. The market is optimistic because it foresees that the Federal Reserve will eventually stop raising interest rates. Similarly, there were enough calm and forward-looking investors to keep GM stock fairly flat yesterday. They understand that workers’ strikes don’t last forever, and there may be a relief rally in store when the UAW and General Motors reach an agreement. So, instead of focusing on headline risk, just stick to the basics. General Motors stock presents great value for a number of reasons. For one thing, General Motors is profitable and has a strong track record of beating analysts’ quarterly EPS forecasts. Also, the company has grown its free cash flow and its gross profits over time. In addition, General Motors’ GAAP-measured trailing 12-month price-to-earnings (P/E) ratio is quite reasonable, at just 4.69x. For comparison, the sector median P/E ratio is 15.82x. Hence, value-focused investors ought to take a close look at General Motors stock. Is GM Stock a Buy, According to Analysts? On TipRanks, GM comes in as a Moderate Buy based on eight Buys, five Holds, and two Sell ratings assigned by analysts in the past three months. The  average General Motors price target  is $50.53, implying 48.8% upside potential. If you’re wondering which analyst you should follow if you want to buy and sell GM stock, the most accurate analyst covering the stock (on a one-year timeframe) is  Ryan Brinkman of JPMorgan ( NYSE:JPM ), with an average return of 14.9% per rating and a 65% success rate. Click on the image below to learn more. Conclusion: Should You Consider GM Stock? The market’s non-reaction to the UAW strike reveals a lot about how forward-looking investors can be. Most likely, financial traders understand that General Motors can withstand the strike, even if it persists for a while. Plus, no matter how you slice it, General Motors is a rock-solid company that isn’t too richly valued. Consequently, investors ought to consider GM stock. Disclosure

Talks between the United Auto Workers and the Detroit Three automakers resumed on Saturday, a day after the union began its first simultaneous strikes at three U.S. auto plants.

Talks between the United Auto Workers and the Detroit Three automakers resumed on Saturday, a day after the union began targeted strikes at three U.S. auto plants.

What happened The auto industry strike that went into effect Friday -- the latest work stoppage in what many are calling the "hot labor summer" of 2023 -- resulted in a lot of action in auto stocks. Many companies in the industry saw trading volumes that were well above average,

Ford Motor has announced layoffs of 600 workers at its Michigan assembly plant, related to the United Auto Workers (UAW) union strike, CNBC reported on Friday.

U.S. stocks ended sharply lower on Friday as chipmakers dropped on concerns about weak consumer demand, while rising Treasury yields pressured Amazon and other megacap growth companies.

Hankering for a new U.S. Supreme Court jurisdictional puzzle? BASF Metals and ICBC Standard Bank have got you covered.

U.S. stocks ended sharply lower on Friday as chipmakers dropped on concerns about weak consumer demand, while rising Treasury yields pressured Amazon and other megacap growth companies.

Consumer stocks were falling late Friday afternoon with the Consumer Staples Select Sector SPDR Fund (XLP) dropping 0.5% and the Consumer Discretionary Select Sector SPDR Fund (XLY) down 1.7%.

U.S. stocks tumbled and Treasury yields bounced on Friday as falling chipmakers and auto stocks outweighed a string of robust economic data, providing a downbeat ending to a tumultuous week.

U.S. stocks tumbled on Friday as chipmakers dropped on concerns about weak consumer demand, while rising Treasury yields pressured Amazon and other megacap growth companies.

Consumer stocks were lower Friday afternoon with the Consumer Staples Select Sector SPDR Fund (XLP) dropping 0.6% and the Consumer Discretionary Select Sector SPDR Fund (XLY) down 1.4%.

The United Auto Workers went on strike at midnight Friday. It is the first time the UAW has simultaneously walked out at all three of Detroit’s big automakers. The unusual options activity for the three automaker’s stocks suggests investors don’t care. That may change.

The Nasdaq fell more than 1% on Friday to lead declines in Wall Street's main indexes as chipmakers fell on concerns over consumer demand, while rising Treasury yields pressured major growth stocks.

Wall Street dipped and Treasury yields bounced on Friday as chipmakers and auto stocks outweighed a string of robust economic data, providing a downbeat ending to a generally upbeat week.

Car manufacturing makes up a much smaller percentage of the U.S. economy today than it did a few decades ago but even so, there has to be an impact when thousands of workers withhold their labor. So, should investors be worried?