Tesla investors suddenly start fearing the early mass market competition from General Motors Bolt EV
Tesla Motors Inc (NASDAQ:TSLA) most important and the first mass market electric vehicle (EV), the Model 3, caught the industry by surprise given its amazing exterior design, range of 215 miles and price tag of $35,000. Many analysts even wrote off General Motors Company’s (NYSE:GM) soon-to-be-launched Chevrolet Bolt EV, which claimed to have “more than 200 miles” and was offered for $37,500.
Bolt EV is more like a mini SUV with simplistic look and the Model 3 is a compact sedan gives a luxury feeling; though, both the vehicles have always been compared since both of them will be among the first American-made, more affordable electric vehicle (EVs).
Today, the largest US automaker revealed that the Bolt EV is expected to get EPA-rated range of 238 miles, which comes as a big surprise to many EV enthusiasts and Tesla fans, particularly given that the vehicle will have a 60kWh battery pack.
Although Tesla CEO Elon Musk cleared that the higher-end version of the Model 3 provides more range, the Model S with the same battery pack provides between 210-218 miles only. Though, it is important to note that the Model S is a much larger vehicle than the Bolt EV.
Tesla investors apparently took the Bolt EV new specifications negatively, as its stock declined 2.40% to $193.54 as of 11:11 AM EDT on Tuesday.
Alan Batey, North America President at GM, said in a statement that the vehicle will hit the dealerships nationwide by the end of 2016, a year ahead of the expected launch of the Model 3. Moreover, the automaker is also saying that an “expected MSRP below $37,500 and before available federal tax credit of up to $7,500,” which points towards a more affordable price close to that of the Model 3, according to Electrek.
While it is clear that GM, like BMW, Nissan, and Toyota, is trying to lure the Model 3 reservation holders to buy their own battery-powered vehicles, the Detroit automaker has done a far better job than the other automakers by being the first automaker to produce an affordable EV with over 200 mile range. Even Apple Co-Founder ‘The Woz’ who is a Tesla fan is trading his Model S for the new Bolt EV.
Nevertheless, TheCountryCaller believes investors shouldn’t fear the Bolt EV, as it will cater to a completely different market from the Model S, as well as the Model 3 and Model Y. While the Model Y could be a direct competitor to the Bolt EV, its performance level will certainly beat that of the Bolt EV.