Tesla Motors Inc (TSLA): Even This Automaker Is Outselling the Chevy Volt

For starters, the Volt is about to get a sleek upscale sibling, the Cadillac ELR luxury coupe, shown above. The ELR is based on the Volt’s technology, but with more power and luxury, as you’d expect from a Cadillac. It’s due at dealers early next year.

Meanwhile, the Volt itself got some modest upgrades for 2013 — better batteries that give it slightly improved range, and a few other new features. And there are rumors that more significant upgrades are on the way for next year, though GM hasn’t yet announced anything.

The Volt’s built-in disadvantage won’t change
But none of these changes overcome the Volt’s biggest handicap: its cost, or, specifically, its cost relative to comparable gas-powered models. The Volt’s current base price is $31,645 — and that’s after a $7,500 federal tax credit. The price is just a function of the Volt’s advanced technology (and its expensive batteries). It’s not likely to come down by a whole lot anytime soon.

Contrast with the similarly sized Chevy Cruze (also a pretty nice car), which starts at just $17,130. You’ll get better mileage with the Volt, but the Cruze’s mileage isn’t bad. Dealers have to explain why the Volt is worth the big premium. With many shoppers, that’s a hard argument to make.

That’s a problem Tesla Motors Inc (NASDAQ:TSLA) doesn’t have. Its dealers can rightly point out that the Model S is a big, powerful luxury sedan that just happens to be electric — and is priced right in line with similar gas-powered sedans from BMW and Mercedes-Benz.

But until General Motors Company (NYSE:GM) can find a way to bring the Volt’s price down further — or give it a spectacular upgrade — slow sales may just be a fact of life for the General’s green ride.

The article Even Tesla Is Outselling the Chevy Volt originally appeared on Fool.com and is written by John Rosevear.

Fool contributor John Rosevear owns shares of Ford and General Motors. Follow him on Twitter at @jrosevear. The Motley Fool recommends BMW, Ford, General Motors, and Tesla Motors and owns shares of Ford and Tesla Motors.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.