GM's 200-Mile Electric Car For $30,000: RIP Tesla
Jan. 11, 2015 11:11 AM ET | 571 comments | About: Tesla Motors (TSLA), GM, Includes: AUDVF, BAMXY, F, HMC
Disclosure: The author is short TSLA. (More...)
Summary
GM’s 200-mile electric car for $30,000 will be unveiled Monday morning in Detroit.
I list the 12 things you need to know about it, mostly in terms of my predictions.
What most people really want to know is the impact to Tesla. In brief, it is brutal. This is margin compression 101.
Furthermore, if GM can deliver a 200-mile range EV for $30,000, Audi and others could do the same as well.
Audi, not wanting to compete with GM for a $30,000 EV, could launch a 300-mile range EV for $45,000, based on this logic.
By now we have all seen the late Friday evening leak from General Motors (NYSE:GM) about the 200-mile electric car for $30,000, which is said to be announced on Monday morning in Detroit.