Tesla is undoubtedly the leader among electric car manufacturers. The innovative electric vehicle company has sold more than 1 million vehicles worldwide. However, GM CEO Mary Barra believes that lead is temporary because Tesla doesn’t have any profitable mass-market electric vehicles in its lineup. The GM CEO rarely talks about Tesla, and she almost never praises or gives EVs any credit for their success today. However, in her latest comments, she indirectly acknowledged Tesla’s leadership in electric vehicles with its innovative technology, profitability and scale.
The GM CEO believes Tesla’s fleet of electric vehicles priced between $30,000 and $40,000 will be unprofitable by the end of the decade as consumers seek out more affordable mass-market options. She made it clear that even though Tesla currently leads the global EV market, it doesn’t sell any mass-market products that the average consumer can afford. Therefore, the lead will be temporary.
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Mary Barra spoke further about profits. She noted that the cost of making electric vehicles remains too high to sell cheaply without hurting profitability. Interestingly, her comments come as Tesla has slashed the pricing of its electric vehicles multiple times in the final months of 2022 and the first quarter of this year, and remains profitable.
Electrek reports that the GM CEO hinted that her company will gradually overtake Tesla’s lead. She didn’t say it out loud, though. GM has promised a slew of electric vehicles over the past few years, including many affordable mass-market models. However, there are only a handful of high-priced models on the market, including the GMC Hummer EV and Cadillac Lyriq. Additionally, GM has decided to discontinue its most affordable EVs: the Chevrolet Bolt EV and Bolt EUV. However, expect the automaker to grab the attention of the EV community soon with the Chevrolet Equinox EV and many other similar options to follow.
First published date: June 6, 2023 at 09:30 AM CST