President Joe Biden is facing a difficult situation as autoworkers strike against the Big Three U.S. carmakers—Ford, General Motors, and Stellantis. Known as the most pro-union and greenest president, Biden is struggling to fulfill his commitments to organized labor and the production of eco-friendly electric vehicles (EVs) in the critical election battleground state of Michigan.
In the past, Biden has been hesitant to acknowledge Tesla’s dominance in the EV market due to its non-unionized status and CEO Elon Musk’s stance against organized labor. However, as Tesla’s influence becomes increasingly impossible to ignore, the White House has started to change its approach. Senior advisors John Podesta and Mitch Landrieu hosted Musk at the White House to discuss EV initiatives, and Tesla announced that it would open its charging stations to non-Tesla owners in exchange for federal funding.
While other carmakers, including GM, Stellantis, and BMW, have announced plans to build their own high-power charging stations, the current network of EV chargers is often unreliable or poorly located. As a result, Ford, GM, and other car manufacturers have signed deals with Tesla to use their larger charger network, effectively conceding to Tesla’s dominance in EV charging infrastructure.
Analysts from Wedbush Securities believe that Tesla is the clear winner in this situation. As a non-union company, Tesla is not at risk of strikes, which could potentially push back production and delay the EV roadmap for other carmakers. Moreover, if the Big Three were to agree to the United Auto Workers’ audacious demands for a pay increase, it could make it even more challenging for them to compete with Tesla on prices.
The ongoing strike and the potential difficulties faced by the Big Three present a unique opportunity for Tesla to further solidify its position in the EV market. With a much larger charger network and lower labor costs compared to its competitors, Tesla stands to benefit from the mounting costs and complexities faced by Detroit’s carmakers.
Sources:
– fortune.com