Elon Musk, the CEO of Tesla Inc., has expressed his concern over the demands made by the United Auto Workers (UAW), stating that they could potentially lead to bankruptcy for major auto manufacturers. The strike by the UAW has gained unprecedented support from President Joe Biden, who made an appearance at a UAW picket-line visit – a move that is deemed significant in modern times.
Elon Musk’s Comments
In a series of posts on the social media platform X (formerly known as Twitter), Musk replied to comments regarding the UAW demands. He stated, “They want a 40% pay raise and 32-hour workweek. Sure way to drive GM, Ford, and Chrysler bankrupt in the fast lane.” Musk’s concern lies in the potential repercussions of such demands on the financial stability of these auto giants.
President Biden’s Support
During his visit to the UAW picket line, President Biden appeared to express his support for a 40% raise for UAW members, responding with a “yes” after several workers posed the question. The proposed raise would be implemented over a span of three years.
Musk on Wage Increases and Car Affordability
In another post on X, Musk responded to a discussion about the impact of wage increases on the cost of cars. He stated that passing on these costs to consumers would make cars unaffordable and ultimately result in a major drop in sales, potentially leading to bankruptcy for auto manufacturers.
UAW Strike Impact
As the UAW strike continues, stocks of major auto companies such as Ford, GM, and Stellantis N.A. remain in the spotlight. Tesla, being a non-union auto maker and a leader in the electric vehicle (EV) market, stands apart from the ongoing strike.
Picketing Incident in Flint, Mich.
During the UAW strike in Flint, Michigan, at least four individuals sustained minor injuries when a vehicle leaving the plant accidentally struck them. Police are investigating the incident, as reported by the Associated Press.
Also read: UAW strike: 5 things to know