By Tomi Kilgore
Tesla is in talks to build EV factory in Saudi Arabia, and there are multiple reports that Turkey is seeking a factory of its own
Shares of Tesla Inc. reversed lower again Monday, with the United Auto Workers' ongoing strike against the Big Three automakers so far failing to provide the support that many on Wall Street had expected.
The electric-vehicle giant's stock (TSLA) slumped 3.2% in morning trading, after rising as much as 0.6% in premarket trading.
On Friday, the stock had rallied as much as 1.1% to a two-month high in intraday grading, then pulled a U-turn to close down 0.6%.
The declines come despite analysts saying that Tesla, which has a nonunion workforce, should benefit from the labor troubles at General Motors Co. (GM), Ford Motor Co. (F) and Stellantis NV (STLAM.MI), which are likely to delay the Big Three's EV plans.
As Baird analyst Ben Kallo put it in a note to clients as the strike began on Friday, a prolonged strike should benefit Tesla due to its production capabilities and opportunity to build on its leading market-share position. But with the strike extending to its fourth day and second trading session, Tesla's stock has lost 3.8%.
Also read: Will UAW strike provide an opportunity for Tesla -- and push up car prices?
Separately, the Wall Street Journal reported Friday that Tesla is in talks to set up a manufacturing facility in Saudi Arabia.
Citing people familiar with the discussions, Monday's report said the talks are part of that country's push to secure metals needed to make EVs and to diversify its economy away from oil. The talks are at a very early stage and could still fall apart, the Journal reported.
There were also multiple reports, citing Turkish state media outlet Anadolu Agency, that Turkey's President Recep Tayyip Erdogan asked Tesla CEO Elon Musk, in a meeting in New York, whether Tesla could build an EV factory in Turkey.
Tesla's stock has gained 1.9% over the past three months, while GM's stock dropped 10.8%, Ford's has shed 13.7% and Stellantis's has gained 9.2%. The S&P 500 SPX has edged up 1% the past three months.
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September 18, 2023 11:04 ET (15:04 GMT)
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