Per the AP, General Motors Company (NYSE:GM) plans to launch 10 gasoline-electric hybrid and electric-only vehicles in China by the end of the decade, with the first pure-electric model slated to enter production within the next two years. Given that China has a lot of pollution, the government there has ambitious electric vehicle goals and GM hopes to grab a piece of the pie, aiming for annual sales of 150,000 electric/hybrid vehicles by 2020 and as many as 500,000 by 2025 in the nation. China’s government has planned to have as many as 900,000 public and private electric charging stations by the end of 2017 to reduce ‘range anxiety’ among consumers. The government has also exempted sales taxes from select cities for pure-electric cars to increase demand.
The news of GM’s planned electric vehicles isn’t exactly good news for Tesla Inc (NASDAQ:TSLA), which also has big plans for China. Tesla Inc (NASDAQ:TSLA) recently executed a brilliant deal by having Chinese social network Tencent buy 5% of the company, thereby giving Tesla much needed capital and a very strong potential marketing partner in the country.
What Does The Smart Money Sentiment Say?
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Of the two companies, the smart money liked GM more. Of the 742 elite funds we track, 65 funds owned $4.67 billion of General Motors Company (NYSE:GM) versus 38 funds and $1.19 billion for Tesla Inc (NASDAQ:TSLA) at the end of Q4.
The Bottom Line
Although Tencent may have invested in Tesla Inc (NASDAQ:TSLA), Elon Musk’s electric vehicle company will likely have some American competition in the world’s most populous country by the end of the decade. For more reading, check out ‘7 Countries That Make The Best Cars In the World‘.