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Can General Motors Company(GM)’s Chevy Bolt Make Tesla Motors Inc (TSLA)’s Musk Sweat? Ben Kallo Doesn’t Think So

General Motors Company (NYSE:GM) is all set to enter the race for EV market with Tesla Motors Inc (NASDAQ:TSLA) with the revelation of its second generation Chevy Volt and Bolt models in the Auto show at Detroit. Tesla Motors Inc (NASDAQ:TSLA) is planning to launch its Model 3 vehicle in 2017, which is expected to have a 200 mile range with a price tag of $35,000. General Motors Company (NYSE:GM)’s Chevy Bolt is also expected to have a 200 mile range with a price tag of $30,000 – $35,000. So will Chevy Bolt be able to grab the shares from Tesla Motors Inc (NASDAQ:TSLA) or will the Bolt model fail as the first generation Chevy Volt did? Ben Kallo, Senior Research Analyst at R.W. Baird talked on CNBC about his view on the battle between Tesla Motors Inc (NASDAQ:TSLA) and General Motors Company (NYSE:GM).

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One added advantage that General Motors Company (NYSE:GM) possess is the distribution network that they have in United States. This will enable people to visit the distribution centers and test drive the GM vehicles, which is not possible with a Tesla Motors Inc (NASDAQ:TSLA) vehicle. But will this catalyst just be enough to capture some share in the EV market? Kallo thinks that GM’s performance in EV has been lackluster so far. He said that they are not expecting anything different with the new vehicles from GM.

Kallo added that after having a look at GM’s concept car, lackluster is the only word that comes to mind. He said that Tesla Motors Inc (NASDAQ:TSLA) would never do such a vehicle. As far as General Motors Company (NYSE:GM) is concerned they might not look for an outright win in the EV game, but if they managed to grab some share from Tesla Motors Inc (NASDAQ:TSLA), they would be satisfied. Kallo doesn’t think that this will be a risk in their model for Tesla Motors Inc (NASDAQ:TSLA) coverage.

“I think the way we look at it and with the way we have always looked at is that we initiate Tesla as a performance car and a luxury car manufacturer and we expect to Model 3 will compete with the Audi A4 and BMW 3 series, rather than other electric vehicles like this (Chevy Bolt) that more have the same performance characteristics.

R.W. Baird has a ‘Buy’ rating on Tesla Motors Inc (NASDAQ:TSLA) with a price target of $275, which is currently trading at $202.

Disclosure: None

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