Tesla Stock On Track To Extend Winning Streak To 3 Sessions: What's Going On?

Shares of Tesla, Inc. TSLA rose in premarket trading on Friday following positive finishes in the past two sessions.

The immediate catalyst that could be lifting the stock higher is the United Auto Workers’ union strike, which is impacting production at legacy automakers General Motors Corp. GM, Ford Motor Co. F, and Stellantis N.V. STLA.

“For the first time in our history we will strike all three of the Big Three,” UAW President Shawn Fain said. The strike has been planned in phases, with the first phase affecting Ford’s Michigan plant, GM’sWentzville Assembly Plant in Missouri, and Stellantis Toledo Assembly Complex.

The analyst sees the strike as a big positive for Tesla. He said that Deepwater Asset Management’s Gene Munster estimates that manufacturing labor costs for the big three will become 40-45% higher than Tesla’s if they agree to a 25% wage hike.

Wedbush analyst Daniel Ives said, "The clear winner in this ‘Game of Thrones' battle between the UAW vs. GM/Ford is Tesla which sits in a non-union position.”

The analyst sees this as a potential nightmare situation for GM and Ford, as they are in the early stages of a massive EV transformation path for the next decade that will define future success.

Additionally, Tesla removed the Model Y rear-wheel drive standard range version from its U.S. website. The pricing of the Model Y Long Range variant is $50.490 before the $7,500 electric vehicle tax credit, and the Performance variant is at $54.490.

Commenting on the development, Future Fund’s Gary Black said, “There was some concern that TSLA might cut price of M-Y as 3Q draws to a close. Instead TSLA might want to allocate more 4680 cell production capacity to Cybertruck.”

In premarket trading, Tesla stock rose 0.95% to $278.65, according to Benzinga Pro data.