Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Tesla Motors Inc (TSLA), General Motors Company (GM): Don’t Fear Price Declines In The EV Market

Comparing the Tesla Motors Inc (NASDAQ:TSLA) Model S to the General Motors Company (NYSE:GM) Chevrolet Volt is not exactly fair. Of course, the fact that these are both electric vehicles will have people making comparisons for many years to come.

Are Tesla Motors Inc (NASDAQ:TSLA) and General Motors Company (NYSE:GM) in the Same Boat?From a pricing point of view, these two cars are not in the same ballpark. The Model S can top out over $90,000, according to this piece by Vince Bond, while the Volt is nowhere near as expensive with a price of $27,495 after applying the $7,500 federal tax credit.

The interesting thing, at this point, is that the Chevrolet has dropped the price of the Volt, according to Mike Colias of Automotive News, with a new sticker price, including shipping, of $34,995. This is a decrease of approximately $5,000, when compared to average sticker prices from the previous year.

Tesla Motors Inc (NASDAQ:TSLA) Holding Strong

Tesla and General Motors Company (NYSE:GM) may both be dabbling in the same space, but this doesn’t lead to identical sales performance. Colias added that prices were falling in the electric vehicle market, which is something to take note of. See, along with GM’s recent price cut, Ford, Nissan, Daimler, and Fiat have all undertaken similar measures.

Those who are skeptical of electric vehicle technology are pointing to recent price decreases by major industry players as a sign of weakness. On the other hand, any Econ 101 student would tell you that price cuts are a natural evolution of any market, as it broadens its base, so there’s that.

While General Motors Company (NYSE:GM) is lowering the price of the 2014 Chevy Volt, Tesla Motors Inc (NASDAQ:TSLA) is not doing the same for its popular Model S. Instead, it’s likely that the much-rumored “Gen III” vehicle will allow Tesla to tackle a lower price point–somewhere around $30,000, let’s say–within the next 2-3 years.

Hedge fund managers William Duhamel, Drew Cupps, Ryan Frick, and Eric Bannasch, remain heavily invested, though it’s interesting that the overall industry doesn’t have a larger interest in the company. What are your thoughts?

One Tesla Motors Inc (NASDAQ:TSLA) model we haven’t mentioned yet is the Model X; check it out below:

Recommended Reading:

Tesla Gets Five-Star Rating: Should Ford, Other Competitors Worry?

Loading Comments...