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Home » Tesla May Raise Wages in Response to UAW Strikes, Analysts Suggest

Tesla May Raise Wages in Response to UAW Strikes, Analysts Suggest

Canaccord Genuity just cut his price target on $TSLA from $267 to $234

The ongoing UAW strikes against Detroit automakers could spur wage increases at non-union Tesla according to analysts.

AOC Pledges to Switch from Tesla to Union-Made EV in Solidarity with UAW

On CNBC, Barclays’ Dan Levy predicted the lengthy UAW work stoppage and resulting labor cost increases for Ford, GM and Chrysler could force Tesla’s hand.

With UAW pushing higher wages as a key demand, Tesla may have to follow suit to stay competitive in hiring even though its workforce isn’t unionized.

Levy believes Tesla can absorb higher wages thanks to its successful use of worker stock options. CEO Elon Musk stated the compensation plan has created many Tesla employee millionaires.

Elon Musk also warned UAW’s demands could damage the Detroit automakers’ viability long-term if granted, Elon Musk Warns Automakers Face “Kodak Moment” If They’re Too Slow on EVs.

So far, Tesla has not commented on any potential wage changes resulting from the prolonged UAW strike impacting its rivals.

Ford CEO Jim Farley acknowledged in a recent interview, Tesla’s meteoric rise and stellar EV execution cannot be ignored. To retain talent, Tesla may be compelled to open its wallet wider.

With UAW holding out for substantial raises and Detroit automakers aiming to avoid losses, the rippling effects on the broader auto labor market remain to be seen. Tesla staying competitive could come at a steepening price.

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