While Tesla, Ford And GM Face Labor Action Threats, XPeng And Worksport Posted Strong Third Quarter Results

Workers at Ford Motor F, Stellantis STLA and General Motors GM, are weighting in on the record contracts that the UAW and the Big Three agreed upon. So far, there have been notable rejections such as from the Ford Kentucky plant workers and with GM being the most skeptical, claiming that veteran workers are not compensated as much as their younger counterparts. If members vote down the agreed upon pact, the UAW will need to decide whether it will resume strikes, return to the negotiating table, or both. Even the EV king, Tesla Inc TSLA is also facing a major labor action in Sweden where workers threaten to block the loading and offloading of its EVs in ports. Meanwhile, Volkswagen VWAGY-backed Chinese EV startup, XPeng XPEV just reported better-than-expected third quarter results and a promising player in the pickup space, Worksport Ltd. WKSP(NASDAQ: WKSPW) reported impressive third quarter figures. 

Worksport Posted Impressive Third Quarter Results

For the quarter ended on September 30th, Worksport reported North American sales rose approximately 2399% YoY to $458,483. When accounting for U.S. revenue alone, Worksport reported revenue rose 3359% to $454,258. These figures reflect Worksport’s growing production, expansion of product offerings and the beginning of large sales orders getting fulfilled. As it continues to work on bringing its innovative solar-powered tonneau cover SOLIS and COR portable battery system to the market, Worksport launched its new SC4 PRO tonneau cover in June and identified a top-tier solar panel provider for the SOLIS cover in September. During the quarter, Worksport received an order worth $720,000 for its soft-folding tonneau covers along with a $1,600,000 order for its hard-folding tonneau covers from a well-established U.S. customer and reseller of automotive aftermarket accessories. Also during the reported quarter, Worksport signed a long-term supply agreement with one of its major U.S.-based aftermarket customers that is estimated to bring in $16 million in annual sales of its cutting-edge and advanced hard-folding and soft-folding truck bed covers. The figure alone is an estimate that does not include expectations of YoY sales growth  as it is based on the customer’s forecast on an annualized basis and therefore, is likely to be even greater.

With its establishment of a state-of-the-art R&D facility in Springfield, Missouri, known for its vibrant truck-loving culture, and the completion of a custom manufacturing line, Worksport positioned itself at the heart of its targeted demographic. During the quarter, Worksport’s state-of-the-art manufacturing facility in Western New York roared to life, as the first custom manufacturing line became operational with four more coming to life soon. Worksport also gained the official qualification for the esteemed “Made in the USA” label which is another fuel for its revenue growth considering that surveys show that consumers are willing to pay a premium for such products due to the belief that they are of superior quality compared to their ‘not-made-in-the-USA’ counterparts. Hyundai Motor Company HYMTF will be among the first to gain a customized prototype of Worksport’s revolutionary made-in-the-USA SOLIS cover and a modified version of the COR battery system tailored for Hyundai Santa Cruz pickup truck.

The UAW Kicked Off A Chain Reaction Across The Industry, Reaching Even Tesla

Following UAW’s tentative agreements with GM, Ford and Stellantis, nonunionized automakers operating in the U.S., Toyota Motor TM, Honda Motor Co Ltd HMC and Hyundai. On Monday, Hyundai announced a 25% raise by 2028 to match the general wage increase UAW gained at Detroit’s Big Three, while Toyota increased factory pay 9 to 10% as of January, followed by Honda that announced an 11% increase in wages during he same period. Meanwhile, Tesla is refusing to engage in negotiations and reach an agreement with its unionized force in Sweden with the conflict only escalating in response. With EV demand slowing down, Tesla also risks its thinning margins staying lower for a longer period than planned and even its long awaited Cybertruck whose debut is scheduled for November 30th might not be able to get it out of the mess it created itself by igniting the price war earlier this year. Tesla needs to deal with a changing landscape but with the UAW action, legacy automakers like GM and Ford gonna have a harder time catching up, but Hyundai, Volkswagen and XPeng that Volkswagen backed, along with Li Auto LI topped Tesla in China sales in October are increasing threats to the eV king, as is its biggest rival in China, BYD Company Limited BYDDF.

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