General Motors Company (NYSE:GM) is venturing into the electric vehicle industry with an upcoming model receiving a lot of promotion.
The vehicle manufacturer released images of its prototype electric car known as the Chevrolet Bolt. This is the first time GM trying to make such a move, and the company plans to do it right. That means General Motors is designing the vehicle in the right way that was envisioned at the beginning, where electric cars will be affordable and have a decent power range.
GM claimed that a single charge can provide an ample power range of about 200 miles. Additionally the car will be affordably priced at $30,000 after putting federal tax incentives into considerations. The announcement came as a huge surprise for Tesla Motors Inc (NASDAQ:TSLA), whose electric vehicles are priced above $75,000. The cheaper prices for GM’s new electric car are a reason for Telsa to worry because it will threaten Tesla electric vehicle sales.
Tesla is not yet ready to lose out in the electric vehicle game. The company plans to launch the Model 3 which will be affordably priced at roughly $35,000. The vehicle will make its debut in 2017. General Motors has been busy testing the Bolt prototype in Milford, Michigan. The car will most likely be available for sale later than Tesla’s Model 3. Regardless, GM has been intensifying its promotion, probably an effort to make sure sales will be ample once it launches.
General Motors Company (NYSE:GM) plans to pump $245 million into its Orion Assembly plant in Michigan, where the Bolt will be manufactured. It will also create an additional 300 jobs. The VP of GM’s manufacturing and labor relations in North America described it as a new venture into new territories, one that will not be easy but worth putting in effort.
GM’s new electric vehicle venture is expected to bring more competition into the industry and eventually that will lead to better standards, including more affordable pricing.