Vroom Inc VRM shares are currently down by 4.7% to $1.22 as Monday’s trading session comes to a close. The stock of used car retailers has been experiencing volatility in recent sessions due to a historic simultaneous strike launched by the UAW.
This strike has the potential to impact vehicle production at major automakers, potentially leading to higher prices for used cars.
Why Does It Matter?
During a UAW strike, the production of new vehicles may be disrupted or delayed. As a result, consumers who were planning to buy new cars may turn to the used car market as an alternative. This increased demand for used cars could benefit Vroom, potentially leading to higher sales, revenues, and ultimately, an increase in its stock price.
When new car prices rise due to a strike-related supply shortage, some consumers may opt for more affordable used cars instead. Vroom’s online platform offers a variety of used vehicles at different price points, making it an attractive option for price-sensitive consumers during a strike.
As this labor dispute takes center stage, you can find five crucial insights to stay informed about the latest developments here.
According to data from Benzinga Pro, VRM has reached a 52-week high of $2.82 and a 52-week low of $0.73.
