General Motors higher executives on coming Wednesday are to tackle one of the toughest tasks they ever faced: getting potential investors to believe that a Detroit carmaker will match up against Elon Musk's Tesla Inc as the auto-industry goes electric. As the entire global economy reels from coronavirus threats, Tesla's market value is outperforming that of GM and many other older legacy carmakers. On Tuesday, Tesla's market cap hovered around $144 billion, quite 3 times GM's $45 billion. GM is far and away from the larger manufacturer by volume and generates additional cash and profits. But within the electric vehicle market, Tesla is that the leader.
Last year, Tesla sold 367,500 electric vehicles globally, including 223,000 within us. GM managed to only sell just 16,400 Chevrolet Bolt EVs to the American buyers, and 60,000 Baojun E-Series in China with SAIC Motor as their primary venture partner.
GM's CEO Mary Barra and President Mark Reuss collectively have cranked up EV R&D over the last few years, specializing in a new concept battery, an economically flexible car design and a business strategy for mass production, primarily in China. The corporation has disclosed its EV strategy in small steps - revealing the Hummer brand will be revamped as an electrical pickup and then shaking hands with South Korean battery manufacturer LG Chem to create a $2.3 billion battery plant near a shuttered GM car plant in Lordstown, Ohio. GM is now attempting to paint the broader picture into focus for possible major investors.
GM has said it aims to scale back the value of battery cells - the only greatest expense in electric vehicles - to but $100 per kilowatt-hour. GM is additionally developing a complicated battery, in partnership with LG Chem and Japan's Honda Motor Co, which will be smaller than current EV batteries, are often charged more quickly and will provide more energy. Musk has told investors that Tesla has battery cost and range breakthroughs within the works that it'll describe at a "Battery Day" in April.
Barra has said GM plans to spend more on electric vehicles than on gasoline-powered cars over the subsequent five years. But it's not put a figure on what proportion it'll invest in its efforts to rival Tesla and traditional competitors like Volkswagen AG or Ford Motor Co as the electric vehicle market develops. Barra is assured that GM will make profits on EVs by 2021.