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.
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: