Tesla (TSLA) -) has been able to take on all-comers so far.
The electric vehicle maker is the global U.S. market share leader and second globally to China's BYD Auto with about 16% of the market, according to data from Counterpoint.
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While BYD has overtaken Tesla's spot as the top seller globally, the company's U.S. business remains tops with a more than 60% market share in 2022.
But a new hurdle could soon be on the horizon for the car company, and its competitors, if the labor situation with the auto workers union isn't resolved.
"This new union leadership is doing things very different. If they're not getting what they feel they should, and the new UAW (United Auto Workers Union) leader wants to show he's fighting for his members, they may shut down a key supplier which could shut down the plants," former Ford CEO Mark Fields told CNBC Tuesday.
"They want to reinstate defined pension. That would add billions to the cost structure of the automakers and they will push back hard on that. And if they go to a strike, it'll be interesting because it has a huge impact on the economy."
Check out the full interview below.
A potential strike could be looming over $GM, $F, and $STLA, as the union representing auto workers seeks a 40% pay raise and better benefits. Former @Ford CEO Mark Fields has an inside look at the state of negotiations as the September 14th contract expiration date nears. pic.twitter.com/hSC5HM9sQK
— Squawk Box (@SquawkCNBC) August 8, 2023
Tesla, with CEO Elon Musk, has been one of the more aggressive automakers when it comes to its relationship with union workers.
Earlier this year, a court ruled that a 2018 Twitter post from Musk unlawfully threatened Tesla employees with the loss of stock options if they chose to join a union.
"Nothing stopping Tesla team at our car plant from voting union. Could do so tmrw if they wanted. But why pay union dues and give up stock options for nothing? Our safety record is 2X better than when plant was UAW & everybody already gets healthcare," Musk tweeted.
The court ordered the tweet be deleted in a ruling that stated “because stock options are part of Tesla’s employees’ compensation... substantial evidence supports the NLRB’s conclusion that the tweet is as an implied threat to end stock options as retaliation for unionization," according to the Associated Press.
