HomeMarket NewsMicro Cap StocksCrisis Strikes Big Three Automakers as Labor Actions Loom, Yet XPeng and...

Crisis Strikes Big Three Automakers as Labor Actions Loom, Yet XPeng and Worksport Soar

Actionable Trade Ideas

always free

people having protest world environment day 1

Amidst mounting tensions, workers at Ford Motor F, Stellantis STLA, and General Motors GM are grappling with the contentious pact inked by the UAW and the Big Three. This saga unfolds with notable rejections, particularly from the Ford Kentucky plant workers, while GM voices skepticism, alleging disparate compensation between veteran and younger workers. Should the members veto the accord, the UAW faces tough decisions on resuming strikes, renegotiations, or both. Not to be outdone, the EV titan Tesla Inc TSLA finds itself entangled in a labor standoff, as Swedish workers threaten to impede the loading and unloading of its EVs at ports. Meanwhile, XPeng XPEV, a spearhead in the Chinese EV sphere with Volkswagen VWAGY backing, has unveiled a stellar third quarter performance. Adding to the mix, Worksport Ltd. WKSP(NASDAQ:ย WKSPW) has notched up remarkable third quarter figures.

Worksport Unleashes Astounding Third Quarter Performance

Worksport witnessed a staggering 2399% YoY surge in North American sales, amounting to $458,483 in the quarter ending September 30th. U.S. revenue alone climbed a hefty 3359% to $454,258. These figures underscore Worksportโ€™s burgeoning production, expanded product portfolio, and the commencement of fulfilling substantial sales orders. The quarter saw Worksportโ€™s unveiling of the new SC4 PRO tonneau cover in June, and the selection of a top-notch solar panel provider for the SOLIS cover in September. Notable milestones include bagging a $720,000 order for its soft-folding tonneau covers and a $1,600,000 order for its hard-folding tonneau covers from a renowned U.S. automotive aftermarket accessories customer and reseller. Additionally, Worksport forged a long-term supply agreement with a key U.S.-based aftermarket customer, projecting an annual sales inflow of $16 million from its cutting-edge hard-folding and soft-folding truck bed covers. With its cutting-edge R&D base in truck-centric Springfield, Missouri, and a customized manufacturing line in Western New York, Worksport has cemented its standing within its target audience. Noteworthy is its acquisition of the esteemed โ€œMade in the USAโ€ qualification, resonating with consumers willing to pay a premium for top-quality U.S.-made products. Hyundai Motor Company HYMTF will be among the first beneficiaries of Worksportโ€™s innovative made-in-the-USA SOLIS cover and a tailored COR battery system, designed for the Hyundai Santa Cruz pickup truck.

UAW Sparks a Ripple Effect, Ensnaring Tesla

Following UAWโ€™s tentative agreements with GM, Ford, and Stellantis, non-unionized U.S. automakers such as Toyota Motor TM, Honda Motor Co Ltd HMC, and Hyundai have stepped up their game. Hyundai recently pledged a 25% wage hike by 2028, mirroring UAWโ€™s gains at Detroitโ€™s Big Three, while Toyota and Honda announce solid pay hikes. Contrastingly, Tesla remains obstinate, refusing to engage in negotiations with its Swedish unionized workforce, intensifying the standoff. With EV demand ebbing, Tesla faces prolonged margin strain, compounded by the repercussions of sparking a price war earlier this year. Tesla must grapple with the shifting landscape, while traditional behemoths like GM and Ford are staggered by the UAW discord. In the global EV arena, the likes of Hyundai, Volkswagen, XPeng with Volkswagenโ€™s support, and Li Auto LI have eclipsed Tesla in China sales for October, heightening the pressure on the EV powerhouse. Notably, BYD Company Limited BYDDF emerges as Teslaโ€™s major challenger in the Chinese market.

DISCLAIMER:ย This content is for informational purposes only. It is not intended as investing advice.

Swing Trading Ideas and Market Commentary

Need some new swing ideas? Get free weekly swing ideas and market commentary from Jonathan Bernstein here: Swing Trading.

Explore More

Weekly In-Depth Market Analysis and Actionable Trade Ideas

Get institutional-level analysis and trade ideas to take your trading to the next level, sign up for free and become apart of the community.