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Ford Motor Co. Chairman Points Fingers at Tesla and Other Automakers Amid UAW Strike

James L. Flint

• October 17, 2023

Tesla and Competitors Benefiting from Ongoing Auto Workers Strike, Claims Bill Ford

Ford Motor Co.'s Executive Chair, Bill Ford, has made a surprising statement that has rattled markets. He asserts that Tesla Inc. and other car manufacturers are capitalizing on the ongoing United Auto Workers (UAW) strike, causing dissatisfaction among the Big Three.

In a speech delivered on Tuesday, Ford called for an end to the strike and argued that Tesla, along with notable brands like Toyota Motor Corp. and Honda Motor Co., are the ones reaping rewards from this labor dispute. While there may be many who share his sentiment, recent market trends suggest otherwise.

Since September 14, the day when the UAW contract expired and the strike commenced, Tesla's shares have experienced a 7.5% dip in value. Conversely, Ford's shares also suffered a decline of 4.2% during the same period.

It's important to note that Tesla's lackluster stock performance is primarily attributed to concerns surrounding the company's profit margins and demand. Tesla has undertaken multiple price cuts recently, which has further fueled skepticism in the electric vehicle manufacturer. Moreover, during the same period (since September 14), Tesla has underperformed the broader U.S. equity market as seen in the S&P 500's 24% loss.

However, it is worth mentioning that Tesla has had an exceptional year thus far. The company's stock has soared by an impressive 107%, while the S&P has seen a modest rise of around 14%.

While the focus remains on Tesla's forthcoming third-quarter earnings report, it is anticipated that any lingering doubts regarding Tesla's performance will be addressed.

Nevertheless, it is crucial to recognize the significant impact of the UAW strike. In response to Bill Ford's comments, UAW President Shawn Fain emphasized that the chairperson possesses the knowledge of exactly how to conclude the strike. Rather than framing the issue as a battle between UAW, Ford, and foreign automakers, Fain believes that it is a collective struggle against corporate greed on behalf of auto workers worldwide.

Breaking from tradition, the UAW has organized strikes at various Ford, General Motors, and Stellantis facilities—departing from their typical practice of targeting a single company. This approach allows the union to maximize its picket-line influence and strike fund.

Tomi Kilgore contributed to this report.