Tuesday the 2nd = Two-s-day

Strikes cost money, but those costs equal more earnings later, so strikes are investments. Is that how money works?

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Gotta Strike Money To Make Money?

Ever wonder how much money the UAW made with all its production-halting moves in 2023? Like a Facebook relationship in 2007, it's complicated. Membership is down, strikes cost big bucks, but new assets are up. Here are the details from a recent Automotive News article.

• According to its annual financial report, the United Auto Workers union reported a 3.3% decrease in membership last year, dropping to 370,239, the lowest level since 2009.
• Despite this decline, the union's net assets increased to $1.1 billion, even after disbursing $152 million in strike benefits.
• The UAW faced substantial work stoppages at Ford, General Motors, and Stellantis, leading to significant strike-related expenses, including $27,295 on rain ponchos and $37,350 on yard signs.
• UAW President Shawn Fain's compensation was $228,872, while Secretary-Treasurer Margaret Mock received $224,929.
• The union also spent approximately $5.1 million on legal services related to its court-appointed monitor.

Tesla's Worst Q

In a lot of ways, Tesla is running its own race, but off-road, race track, or treadmill, a busted toe is a busted toe.  

In the first quarter of 2024, Tesla's stock plunged by 29%, marking its third-worst quarterly drop since its IPO, as investor worries intensified over rising competition, especially from China, and European sales disruptions.

Despite price cuts, analysts have lowered delivery expectations, with projections around 457,000 units, only an 8% year-over-year increase.

Geopolitical tensions and labor disputes exacerbated production challenges. This downturn led to over $5.77 billion in profits for short sellers, highlighting a tough quarter for Tesla.

Xiaomi: Smartphones and Smart Moves

The Chinese phone maker Xiaomi has a 15% jump in its stock value following the release of its EV. The SUV7 is priced around $4,000 less than the Tesla Model 3 and already has a month-long wait for delivery.

Other Chinese brands, like Nio and Li Auto, have cut their Q1 delivery forecasts, while BYD is pressing on to keep its place as the global EV sales leader.

Does anybody have a guess as to how Xiaomi will do in the market? March Madness is over, and we’re looking for something new to make vague guesses about.

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Tesla’s worst quarter is still a year-over-year increase. Just a smaller one.

It seems to be a metaphor for how some people are unpleasable; no matter how hard you try or how much you achieve, that glass is always half empty… or, in Tesla’s case, the battery is always half depleted.

Don’t let the haters steal your shine today, friend.