Market Commentary

UAW Chief Criticizes Trump’s Ties to Musk Amid Harris Campaign

Namra Pervaiz
8 Aug 2024 · 2 minutes read

United Auto Workers President Shawn Fain criticized Republican presidential candidate Donald Trump's ties to Elon Musk while campaigning for Vice President Kamala Harris. Musk, the CEO of Tesla Inc (TSLA:US), endorsed Trump for November's election after the former president survived an assassination attempt in July. Despite reports, both Musk and Trump denied that Musk pledged $45 million monthly to a pro-Trump committee.

"For months, Donald Trump has gone around trashing our state, our industry, and American autoworkers," Fain said while campaigning for Harris. He accused Trump of changing his stance on electric vehicles (EVs) after Musk's supposed support. Trump, previously opposed to EV mandates, now expresses conditional support, saying, "I'm for electric cars. I have to be, because Elon endorsed me very strongly."

The UAW has endorsed Harris, who recently became the Democratic presidential candidate after Biden stepped aside. Securing the nearly 400,000 UAW members' votes in Michigan is crucial for Harris in the tight race against Trump.

Michigan union households have historically leaned Democratic, but Trump has made inroads with blue-collar workers. Harris is expected to meet union workers in Detroit, with Fain praising her record against corporate malpractice and her vice-presidential pick, Minnesota Governor Tim Walz.

In 2020, 62% of Michigan union households voted for Biden, compared to a split of 53% for Hillary Clinton in 2016. UAW member support has consistently exceeded 60% for Democratic candidates since 2008. Todd Dunn, president of a large UAW local in Kentucky, noted increased engagement among UAW Democrats since Harris's campaign launch.

While the UAW's executive board endorses candidates, the rank-and-file support is crucial. "It signals that the UAW will apply its political resources to support the candidate," said Marick Masters, a Wayne State professor specializing in unions. The Trump campaign did not comment.

Chris Vitale, a UAW member supporting Trump, cited Trump's trade and tax policies as beneficial to the auto industry. "Auto Workers for Trump" will hold a gathering near Harris's Detroit rally, highlighting the divided support within the UAW. Tesla’s role in this political narrative underscores the broader debate over the future of the auto industry, especially as it transitions to electric vehicles—a critical issue for both candidates in their bid to win union votes in the 2024 election. When it comes to Congressional trading, Congresswoman Nancy Pelosi was recently seen selling shares of Tesla Inc in June 2024, with the transaction ranging from $250,000 to $500,000.