After negotiations broke down on September 14, nearly 13,000 UAW (Federation of American Auto Workers) workers from Ford, GM, and Stellantis began a strike. It has now been going on for the fourth day. According to media, the Auto Workers Federation of America set a deadline on Friday to make progress in car negotiations.
Meanwhile, while workers in the automobile industry are on a general strike, the US automobile and truck manufacturing industry is also being watched by the bears. Among them,$Ford Motor (F.US)$It is the most shorted stock among the top three US car manufacturers, ranking third, yet short positions are still far below$Tesla (TSLA.US)$. Furthermore,$General Motors (GM.US)$,$Stellantis NV (STLA.US)$They are also all on the list.
According to S3Partners data, the following are the top ten companies with net shortfalls in the US automobile and truck manufacturing industry:
It is worth noting that in the past 30 days, the US auto and truck manufacturing sectors have seen short recovery of up to 473 million US dollars. However, Tesla reversed the industry's overall short selling recovery activity with a shortsale of $772 million.
Excluding Tesla, the industry added $299 million in short sales. Among them, Stellantis and GM increased short sales, while Ford increased short sales, while Ford increased short sales.
The agency said that the duration and severity of the American Federation of Auto Workers strike will add impetus to the Big Three's short selling behavior. There is no systematic resistance to short selling these stocks due to trading liquidity, sufficient stock loan supply, and stock loan interest rates at the level of ordinary collateral (the cheapest stock borrowing cost for the easiest stocks to borrow). The agency anticipates that as the strike continues, car and truck inventories will be affected, and short sales will increase.
Furthermore, according to market opinion,Regardless of the outcome of the strike, the “Big Three” will definitely spend more money, and any salary increase will further enhance Tesla's huge cost advantage in the field of electric vehicles.
In fact, short selling will pave the way for stock prices to fall, but once the strike is resolved, we may see a large amount of buying as car and truck production returns to normal levels. Therefore, it will be important to grasp the timing.
Editor/Somer