Has General Motors (GM) One-Upped Tesla (TSLA) in the EV Scene?

Your move, Tesla. General Motors Co. (NYSE:GM) plans to release a new fleet of electric vehicles that will be cheaper to build than the automaker’s recently launched Chevrolet Bolt EV and will generate profit for the company.

The remarks from GM CEO Mary Barra seemed like a challenge to Tesla Inc. (NASDAQ:TSLA), which has long been considered as one of the frontrunners in the self-driving technology scene, but has been encountering some headwinds in the launch of its Model 3 vehicle and recently came off its largest-ever quarterly loss.

During the Barclays Global Automotive Conference in New York, Barra touted GM’s aggressive push to launch a modular EV platform in 2021 to support multiple brands and multiple segments. Barra envisages about a 30 percent reduction in the cost per unit for the new vehicles, which the executive attributes to battery and other engineering breakthroughs. The new battery system would charge much faster and store more energy. This would allow GM to increase the range for its units to more than 300 miles compared to the Bolt’s current 238-mile range. Before the release of the new platform, GM will roll out three new electric vehicles by 2020 that will have similar components to the Bolt. Barra also said the automaker intends to sell 1 million electric vehicles per year by 2026, and a large chunk of it will be in China. GM’s bullish forecast “makes sense” as long as it is centered on China, Kelley Blue Book analyst Rebecca Lindland said.

See full report here: GM Barclays Global Automotive Converence November 15, 2017

“Potential for growth in China is extraordinary, whereas you would never see that (growth) in the U.S.,” the analyst said.

GM first unveiled its massive electrification strategy in October, when it planned to launch at least 20 new electric vehicles by 2023, but stopped short on the details. In the same month, the company also announced it was acquiring Strobe Inc., which specializes in LIDAR technology — a surveying method that harnesses light to measure the distance to a target.

Will this strategy crush Tesla’s own self-driving push?

Since Tesla launched the production of its Model 3 last summer, a mere 260 cars were delivered out of the 1,600 models CEO Elon Musk had pledged to churn out earlier in the year. Musk even remarked recently that the Model 3 vehicle would face “manufacturing hell.” The Model 3-associated production bottlenecks may also affect the debut of Tesla’s small crossover, called Model Y. With regards to sales figures, GM topped Tesla for the number of electric vehicles sold in the U.S. in October.

According to InsiderEV, GM sold 2,781 Chevrolet Bolt EV units during the month, compared to Tesla’s number of 1,970 units.

GM ended the latest trading session down 0.33 percent at $42.86 per share.

Share
Published by
Francis Roy, Contributing Editor

Recent Posts

Baidu Stock: Reject Panic and Buy Due to These Future Catalysts

Baidu Inc (NASDAQ: BIDU) stock is going through bad times, amid America’s trade war with China and extremely bad first-quarter…

1 month ago

Cisco Stock: Strong Fundamentals And Resilience Make it a Buy

Cisco Systems, Inc. (NASDAQ: CSCO) is making headlines after the company announced plans to acquire Acacia $2.6 billion deal. The…

1 month ago

Top Pot Stocks for 2019 and Beyond

North American cannabis stocks have been a pretty decent hiding place for investors over the last year. But there’s a…

1 month ago

Reasons to Buy Oracle Corporation (ORCL) Stock in 2019

Oracle Corporation (NYSE: ORCL) stock is in the limelight after the company posted better-than-expected fourth quarter results. Oracle’s revenue in…

2 months ago

G20 Summit Uncertainties: Anchor Your Portfolio To The U.S. Economy

Later this week, on June 28th, to be precise, the 2019 G20 summit will kick-off in Osaka, Japan. And while…

2 months ago

Sell Beyond Meat Inc (BYND) Stock: Competition, Valuation Concerns and Hype

Beyond Meat Inc (NASDAQ: BYND) recently went public with a bang — gaining as much as 500%. But investors were…

2 months ago