After the historic victory of the three major American car manufacturers, Biden supports the union and takes aim at Tesla and Toyota. Tesla's stock plummets.

After the successful strike against the three major traditional car manufacturers in the United States, the United Auto Workers (UAW) has set its sights on Tesla and Toyota, hoping to organize unions at both factories, with the support of President Biden.

Before heading to Illinois on Thursday, Biden was asked if he supported efforts to unionize Tesla and Toyota automotive workers, to which he replied, "Absolutely." He also reiterated his support for union efforts to increase wages, benefits, and expand union membership. In a historic move, Biden appeared at the picket line during the UAW strike against the three major traditional car manufacturers, showing his support for the union's demands.

Biden's trip to Illinois was to meet with UAW President Shawn Fain to celebrate the union's new contracts with Stellantis, General Motors, and Ford, at a shuttered assembly plant in Belvidere owned by Stellantis. Under the new contract terms, the plant will reopen. The six-week strike, which targeted all three major automakers simultaneously, was one of the strongest labor movements in the United States in recent years, resulting in billions of dollars in losses for the automotive industry.

Previously, Shawn Fain expressed his hope to leverage the momentum of the strike to take action against other non-unionized car manufacturers, such as Tesla and Toyota. Currently, the UAW's membership is only a fraction of what it was during its heyday in the mid-20th century. Fain has been committed to expanding the union's size, aligning with Biden's goal of revitalizing the American labor movement.

However, the UAW's attempts to unionize international car manufacturers have been largely unsuccessful, such as with Volkswagen. Nevertheless, as the leading electric vehicle company in the United States, Tesla has become the next target for the UAW. The company has tens of thousands of employees in California, Texas, Nevada, and New York who have not joined a union. One concern for the union is that the transition of the automotive industry to electric vehicles may lead to a decrease in membership and lower wages.

Following the success of the previous strike, UAW President Fain is optimistic about taking on Tesla and CEO Elon Musk, who has been opposed to unions. In an interview last week, Fain stated, "We can beat anyone. It ultimately depends on whether Tesla employees want the benefits they deserve, and I think it's feasible." Insiders revealed that Tesla's factory in Fremont, California currently has a UAW organizing committee, whose members are discussing the advantages of collective bargaining with their colleagues. The insider also stated that the UAW has committed to providing all necessary resources for this campaign.

On Thursday, Tesla's stock plummeted by 6.32% to $208.08, while Toyota's stock rose by 0.69% to $184.69 during midday trading.

Mobilizing the votes of large unions is crucial for Biden's prospects for re-election in 2024. Biden officially launched his re-election campaign earlier this year at a rally held jointly with unions, highlighting the importance of unions in his election. UAW endorsed Biden during the 2020 presidential election, but has not officially announced its support for his re-election. Fain had previously praised Biden's attendance at union strikes, but he is also pushing for continued support from the Democratic Party and the White House for unions and the labor movement. When asked if he would ask Fain for an endorsement, Biden said, "They will support me."