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GM's Plan to Sell More EVs Than Tesla Hinges on Offering More Affordable Electric Models

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【Summary】General Motors CEO Mary Barra believes that the only way for the brand to compete with Tesla is to sell affordable electric cars, which is something that has alluded the all-electric luxury brand.

Original Vineeth Joel Patel    May 07, 2022 7:00 AM PT
GM's Plan to Sell More EVs Than Tesla Hinges on Offering More Affordable Electric Models

Every traditional automaker on the market is looking to compete with Tesla. The all-electric luxury brand got a massive head start on everyone else and they're all looking to play catch-up. Every automaker has its own way of competing with Tesla. Some are going all-in on technology and comfort, while others are looking at having vehicles with more range and better performance. Unlike other automakers, General Motors is looking to go down another route. This one includes making affordable electric cars.

How GM Plans To Outsell Tesla

Anyone keeping track of Tesla's false promises will know that the automaker pledged to sell an affordable electric car back in 2020. The $25,000 autonomous car was supposed to go on sale in 2023. Well, it's 2022 and that vehicle isn't anywhere to be seen. At the beginning of the year, Elon Musk confirmed that the automaker wasn't working on an affordable Tesla. So, an affordable Tesla may never come out.

While Tesla won't come out with an affordable electric car, another automaker is ready to pounce on the opportunity – General Motors. In an interview with Yahoo Finance, GM CEO Mary Barra stated that the automaker is looking to outsell Tesla by the middle of the decade. To do that, Barra believes that cheaper electric cars are necessary.

"Remember, we're not necessarily just selling at the premium end," Barra said, pointing toward the fact that Tesla's most affordable vehicle starts at $48,190 (with destination). "We're going to have electric vehicles affordable at $30,000."

How GM Is Preparing For Affordable EVs

Chevrolet already has Tesla beat on the affordability front, as the Chevrolet Bolt EV starts at $32,495. It's not the newest EV on the market and it doesn't have GM's latest Ultium batteries, but it's still a competitive option. The upcoming Chevrolet Silverado EV will have a rumored starting MSRP price tag of $39,900. The electric Equinox should also arrive in the near future with an affordable price tag.

One major way GM will be able to come out with affordable electric cars is through its partnership with Honda. The two automakers will be working together on battery technology, platforms, and powertrains. While Honda will have its own EVs, finding a partner to help with the costs makes things far more affordable for both brands.  

Of course, GM won't put all of its eggs in one basket, which appears to be Tesla's largest flaw. GM's luxury brands, like Cadillac and Hummer, are coming out with pricey electric cars. Barra admits that GM's plans are more long-term ones, though we think the automaker will be in a better position once the ball gets rolling.

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