After winning an aggressive battle against the three major Detroit automakers – Ford (NYSE:F), General Motors (NYSE:GM), and Stellantis (NYSE:STLA), the United Auto Workers (UAW) union has now launched its largest-ever campaign to unionize at least 13 automakers, including Tesla (NASDAQ:TSLA). In a webpage, the UAW pointed out the need to unionize, given the increase in profits, executive salary hikes, and stock buybacks at the targeted non-union automakers.
UAW’s Unionization Efforts
On Wednesday, the UAW said that workers across at least 13 non-union automakers have announced simultaneous campaigns to join the union. The organizing drive will involve about 150,000 autoworkers at the non-union automakers, including electric vehicle (EV) makers Tesla and Rivian Automotive (NASDAQ:RIVN) and foreign automakers like Toyota Motor (NYSE:TM) and Volkswagen (DE:VOW).
UAW President Shawn Fain urged auto workers to sign electronic cards for union representation. A Reuters report noted that under its organizing strategy, the UAW said that if 30% of workers at a non-union plant sign cards, then the UAW would make the matter public. If 50% express intent to join, then the UAW would organize a rally, and if 70% of workers sign cards, then the UAW would seek recognition or ask for a union representation vote.
Following the UAW’s new contracts with Ford, General Motors, and Stellantis, several foreign automakers announced significant wage hikes to keep the UAW union out of their factories.
Responding to UAW’s efforts, Tesla CEO Elon Musk said that he did not favor the idea of unions. He added that if Tesla is unionized, “it’ll be because we deserve it and we failed in some way.” Musk thinks that unions try to create negativity in a company.
Amid this scenario, let’s take a look at analysts’ ratings for Tesla.
What is the 12-Month Price Target for Tesla?
Wall Street is sidelined on Tesla amid growing competition in the EV space and declining margins. The Hold consensus rating is based on 14 Buys, 13 Holds, and six Sells. The average price target of $247.29 indicates a modest upside potential of 1.3%. Shares have rallied 98% year-to-date.
