How Tesla Lost The Race For Affordable EVs To An Unexpected Rival

[RandySF]

In August 2006, before Tesla had built its first electric car, Elon Musk published his first “Master Plan” for the company with a singular goal: transform the environmentally unfriendly auto industry into a friendly one by selling pricey electric cars that would underwrite the development of affordable ones.

“When someone buys the Tesla Roadster sports car, they are actually helping pay for development of the low-cost family car,” Musk wrote.

Tesla has since rolled out four models cheaper than the $98,000 Roadster it started with in 2008, but none have been priced affordably or achieved Musk’s often-repeated goal of becoming a true mass-market brand. Instead, the company has remained focused on cars with luxury prices: Teslas start at about $50,000 and their average selling price is $68,000, according to Kelley Blue Book. That’s well above the $30,000 to $45,000 price range most industry observers think is the sweet spot for “the low-cost family car” Musk envisioned—a sweet spot that one of Tesla’s unlikeliest rivals just hit.

Tesla has now lost the affordable EV race to General Motors, which spurred Tesla’s creation after quitting the electric vehicle business 20 years ago. The Detroit-based automaker will offer its 2023 Bolt hatchback for only $26,600, slashing the previous sticker price by $6,300. The slightly bigger Bolt EUV loaded up with a high-end audio system, camera-based rearview mirror, sunroof and Super Cruise for hands-free highway driving costs just over $34,000. And GM is offering another cheap EV next year: An electric Equinox crossover that gets 300 miles per charge priced from $30,000, which is in line with gasoline-fueled rivals like Honda’s CR-V and Toyota’s RAV4.




https://www.forbes.com/sites/alanohnsman/2022/08/05/how-tesla-lost-the-race-for-affordable-evs-to-an-unexpected-rival/?sh=417be7482acf

[speak easy]

1. GM is 'an Unexpected Rival' ?

Ask the automakers they snuffed out last century.

[modrepub]

2. The Big Established Auto Makers Have One Advantage

Quality control. That seems to be one of the big issues with Tesla. Consistent quality during the manufacturing process. The established car companies have had generations to work out their manufacturing bugs. Yes they still have them but they've had many, many model changes over their history so they know how to retool.

I don't see a lot of cheap cars on the roads I travel. Mostly SUVs and pick up trucks. So in my neighborhood, brands like Tesla are more common than any other EV on the local roads. My next car will be an EV, just waiting for a few more cycles for them to work out the battery life and charging issues. Don't count me as an early adapter.

[Kaleva]

4. It's over an hour drive to the nearest charging station

Electricity here is about .20 cents a Kwh.

I can charge at home but trips to the hospital and such may be dicey unless I'm fully charged before leaving.

[modrepub]

6. Charging For Non Tesla's

is fraught with problems. The Tesla charging stations are one of the things the company has done much better than the established automakers. I wouldn't be surprised if Tesla's charging station branch is spun off from the company or it is the only surviving part of the company in the distant future.

Charging stations, if I would need them, are not the issue in my neck of the woods. It's their availability. Tesla's app allows people to locate stations, know if they're working and even how many chargers are being used. NonTesla charging stations may or may not be functioning when you arrive on an empty or near empty battery.

Kudos to you for making the change to EVs. Hopefully your experience has been good.

[Vinca]

3. I've been waiting for something within the realm of affordability. I'll be checking

them out. It's about time!

[Beakybird]

5. Another few things GM's CEO, Mary Barra didn't do?

Spend half her time generating outrageous, peurile tweets. She also didn't allow her black employees to be called monkeys.

[AS12]

7. An Unexpected Rival

Is a welcome addition!!

[BSdetect]

8. Another article completely missing the point. There is no such race. Tesla wants others to succeed.

We need many EV makers.

GM is making a huge mistake claiming to make 25 types of EVs by 2025

Truly a stupid idea. Heading for bankruptcy but will ask for another bailout.

If you think Tesla will not produce a very affordable EV in the near future you clearly have no clue what they are doing.

They will be the first to mass produce such a vehicle.

No contest for that.

[rogue emissary]

9. Good on GM.

[Demsrule86]

10. Good they have plants in Detroit and know how to launch a car unlike Musk. Hubs was involved in

four vehicles during his 30 years with GM.

[Xolodno]

11. I'm going to call "shenanigans'" on this article.

GM had the tech to do electric cars a long time ago. It was designed to fail, but it was so successful, they had to literally walk over and tell the team to knock it off.

Tesla, is the catalyst that forced auto makers to do electric. Re-tooling plants, manufacturing, training, etc. was something they were trying to avoid, but now they have no choice. Eventually, Tesla will be bought out. The charging stations however, that's where the money will be made. The more universal and faster it becomes...well, I think everyone can see the picture.