With the UAW strike now going into its first month, there are those wondering if there are any signs of things getting back to some kind of normalcy. That doesn’t look like it will be the case, though, as the strike has expanded, and the automakers are taking hits. Ford (NYSE:F) is down almost 1.5%, and General Motors (NYSE:GM) is down over 2% in Friday afternoon’s trading, while Stellantis (NYSE:STLA) posted a slim fractional gain.
The UAW stepped up its striking efforts by staging a walkout at Ford’s Kentucky truck plant, one of the most profitable operations Ford has. That posed a ripple effect throughout the industry and left Ford itself on the back foot. Ford officials note that they’re about out of breathing room, and if the UAW persists, workers could be harmed, and profits could be lost. That prompted GM and Stellantis to push their counteroffers just a little harder, and even analysts—like those at Evercore ISI—noted that the strikes have been very effective thus far.
However, some are wondering just what the UAW’s endgame is in all this. It’s shifted tactics and is calling for more walkouts without waiting for Fridays. And worse, the Big Three’s own customers are backing the workers in overwhelming amounts. Over half of Americans studied in one poll were either sympathizing with workers or with the workers and the car companies. Only 9% strictly favored the car companies over the workers. Getting workers back to work is one thing, but if the customers are on the workers’ side, that only compounds troubles for the Big Three right now.
Which is the Best Automotive Stock to Buy?
Turning to Wall Street, STLA stock, a Strong Buy by analyst consensus, offers investors 26.55% upside against an average price target of $25.07. Meanwhile, GM stock leads the pack in upside potential, as its average price target of $48.53 means an upside potential of 63.48%.
