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Stellantis and GM furlough more workers as UAW strike expands

Credit: GM (Photo by Brandon Wade for General Motors)

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General Motors (GM) and Stellantis have announced plans to furlough hundreds more workers, just after the United Auto Workers (UAW) expanded strikes against both automakers this week.

According to a report from Reuters, Stellantis will temporarily lay off 525 more workers in Michigan, while GM will furlough 139 employees in Ohio.

The news comes after UAW-represented workers walked off the job at GM’s most profitable assembly plant, and after a walkout at Stellantis’s most profitable truck factory. It also comes after GM reported its Q3 financial results earlier in the day on Tuesday.

The Stellantis furlough takes place at two stamping facilities that supply the company’s truck assembly plant, bringing the total number of furloughed employees to 2,045. GM said that its workers were being furloughed as a result of the UAW’s targeting of its truck assembly plant, bringing the automaker’s total number of furloughed workers to 2,460.

On Tuesday morning, 5,000 UAW members walked off the job at GM’s Arlington Assembly plant in Texas, which makes some of the automaker’s most profitable vehicles, including the Chevy Tahoe, the Chevy Suburban, the GMC Yukon and the Cadillac Escalade.

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The UAW expanded strikes on Monday to include 6,800 workers walking out at the largest and most profitable Stellantis truck plant in Sterling Heights, Michigan. The plant produces the profitable Ram 1500 and other trucks. Just a couple of weeks ago, 8,700 workers also walked out at Ford’s profitable Kentucky Truck Plant.

It also comes on the same morning that GM has reported its Q3 financial results, beating Wall Street expectations amidst the ongoing strike. CNBC estimates that the strike amounts to around $200 million in lost vehicle production per week, and GM CFO Paul Jacobson says the strikes have cost the automaker around $800 million in pre-tax earnings.

“Another record quarter, another record year. As we’ve said for months: record profits equal record contracts.” UAW President Shawn Fain said in a blog post on Tuesday. “It’s time GM workers, and the whole working class, get their fair share.”

GM reported $44.13 billion in Q3 revenue, with net income attributable to stockholders of $3.06 billion and an EBIT-adjusted $3.6 billion. The automaker also reported earning $2.28 per share during the quarter, beating average analyst estimates of $1.88 per share, according to LSEG (formerly Refinitiv) data.

As a result of damage from the strikes, GM said it was pulling previously shared earnings guidance, with which it estimated $12 to $14 billion in adjusted earnings, with net income attributable to stockholders forecast to reach between $9.3 billion and $10.7 billion.

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GM also pulled its near-term electric vehicle (EV) targets, predicting the company would sell 400,000 EVs in North America between 2022 and mid-2024 and would produce as many as 100,000 EVs on the continent during the latter half of 2023. Jacobson reported that the automaker has retained its target of low-digit profit margins on EVs and one million in annual production capacity by 2025.

Ford is set to report its Q3 earnings on Thursday, while Stellantis will do the same next Tuesday. The result could similarly give the UAW negotiating leverage if financial results are positive, or it could risk shareholder confidence if they aren’t.

GM to slow down EV efforts amid UAW’s ongoing strike

What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send your tips to us at tips@teslarati.com.

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Zach is a renewable energy reporter who has been covering electric vehicles since 2020. He grew up in Fremont, California, and he currently lives in Colorado. His work has appeared in the Chicago Tribune, KRON4 San Francisco, FOX31 Denver, InsideEVs, CleanTechnica, and many other publications. When he isn't covering Tesla or other EV companies, you can find him writing and performing music, drinking a good cup of coffee, or hanging out with his cats, Banks and Freddie. Reach out at zach@teslarati.com, find him on X at @zacharyvisconti, or send us tips at tips@teslarati.com.

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Tesla to launch in India in July with vehicles already arriving: report

Tesla is finally making serious moves toward launching in India, with showrooms opening in July, a report claims.

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Credit: Tesla

Tesla is finally bringing its business to India, a new report indicates, as the company is already shipping vehicles from China to the market where it has attempted to launch business for several years.

We first heard of Tesla planning to launch in India about a decade ago when CEO Elon Musk and Indian Prime Minister Narendra Modi met in California at the Fremont Factory in 2015.

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Over the years, the two have hinted that the automaker would eventually land in India, but issues with import duties have delayed Tesla’s attempts.

Now, there seems to be some serious movement in Tesla’s plans, as it has reportedly shipped the first batch of vehicles from China to India, according to Bloomberg. The outlet says these are Model Y Rear-Wheel-Drive configurations.

Tesla is also planning for other parts of the launch, like preparing for Supercharging, aftermarket parts and merchandise purchasing for vehicle owners and fans, and spare parts from various regions, including the United States, China, and the Netherlands.

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The company and the Indian government must have come to some sort of agreement that was catalyzed by Musk and Modi’s meeting in February in the U.S.

It is a long time coming, and it now gives Tesla access to an incredibly vast market in India, where a very small percentage of 2024’s total automotive sales were comprised of electric vehicles.

Another interesting tidbit about the launch is that the vehicles will be coming from Gigafactory Shanghai and not Gigafactory Berlin as previously thought. Reports from other publications, like Reuters, indicated the German production facility was building vehicles for India early last year.

India has a very strict policy that favors domestic manufacturing, which is why the import duties were so high for foreign automakers looking to bring their product into the market. These duties were reduced from 110 percent to just 15 percent, as long as companies aim to invest in India and meet certain investment and sales targets.

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SpaceX and Elon Musk share insights on Starship Ship 36’s RUD

Starship Ship 36 experienced a Rapid Unscheduled Disassembly during a static fire attempt.

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Elon Musk and SpaceX provided an explanation for the Rapid Unscheduled Disassembly (RUD) of Starship Ship 36 on Wednesday. As per Musk, preliminary data suggests that a nitrogen composite overwrapped pressure vessel (COPV) in the vehicle’s payload bay failed below its proof pressure.

On Wednesday evening, Ship 36 experienced a RUD during a static fire attempt. Videos of the incident that were shared online showed Starship Ship 36 exploding into a massive fireball at its launchpad in Starbase, Texas. Images taken in the aftermath of the explosion showed significant damage to the plumbing in the area. The site’s pad structure was also destroyed.

Elon Musk shared some information immediately after the incident. In a response to a post from space enthusiast @Erdayastronaut, Musk stated that “Preliminary data suggests that a nitrogen COPV in the payload bay failed below its proof pressure.”

Musk also noted that, “If further investigation confirms that this is what happened, it is the first time ever for this design.”

SpaceX provided more insight into the incident in a post on its official website.

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“After completing a single-engine static fire earlier this week, the vehicle was in the process of loading cryogenic propellant for a six-engine static fire when a sudden energetic event resulted in the complete loss of Starship and damage to the immediate area surrounding the stand.

“The explosion ignited several fires at the test site, which remains clear of personnel and will be assessed once it has been determined to be safe to approach. Individuals should not attempt to approach the area while safing operations continue,” SpaceX wrote in its post.

SpaceX highlighted that despite Starship Ship 36’s RUD, the incident will not result in any hazards to the surrounding communities in the Rio Grande Valley. And in a post on X, SpaceX also confirmed that everyone in the Starship team was safe and accounted for after Ship 36’s explosion.

While Ship 36’s RUD is a speed bump for the Starship program, SpaceX is a company that is known to grow stronger with every adversity. Thus, it would not be surprising if SpaceX implemented numerous improvements to Starship after this incident–improvements that would make the vehicle more reliable and safer than before.

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Tesla has started rolling out initial round of Robotaxi invites

Tesla is putting safety above all in its initial Robotaxi rollout.

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Credit: @BLKMDL3/X

Tesla has started rolling out an initial round of invites for its upcoming Robotaxi service in Austin, Texas.

Screenshots shared by several Tesla community members who received the invites provided a quick overview of the autonomous ride-hailing service.

As noted in a techAU report, the initial round of Robotaxi service invites has gone to longtime Tesla owners and active members of the EV community. These include owners such as @SawyerMerritt, @BLKMDL3, @WholeMarsBlog, @ItsKimJava, and @HerbertOng, all of whom shared screenshots of the invitation that Tesla has sent about the upcoming service.

You’re Invited to Early Access of Tesla Robotaxi!

The Future is Now! You’re invited to Early Access of Tesla’s Robotaxi service in Austin, TX!

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As an Early Access rider, you can be among the first to use our new Robotaxi App and experience an autonomous ride within our geofenced area in Austin. Through this exclusive preview, you’ll have the opportunity to provide valuable feedback on our Robotaxi service.

Based on Tesla’s message, it appears that participation in the service would be strictly invite-only for now. Participants must also download Tesla’s dedicated Robotaxi App to hail a ride. Rides can also be requested and initiated to and from any location within a geofenced area of Austin.

The robotaxi service will be available from 6:00 AM to 12:00 AM, seven days a week, though these hours may change depending on factors such as inclement weather. Interestingly enough, Tesla is inviting the first participants of the Robotaxi program to share photos and videos of their experience with the service.

While the vehicles themselves are autonomous and would operate without human input, the Robotaxis would still be accompanied by a Tesla staff member to monitor the vehicle. This strategy suggests that Tesla is really putting safety above all in its initial Robotaxi rollout.

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