GM’s Tesla Killer
Yesterday in Michigan, General Motors (NYSE: GM) laid out its plan for a new electric vehicle (EV) future. That plan could not only freshen up the image of a brand known for trucks and luxury SUVs but provide stiff competition for Tesla (NASDAQ: TSLA).
GM’s new EV plan goes by the name Ultium. And it’s a new EV platform on which it can build any number of different vehicles, from performance coupes to family-hauling SUVs, reports GM.
In 2020, it’s not surprising that a major car company is unveiling a new electric vehicle platform. However, GM has both the size and infrastructure to possibly make a serious dent in Tesla’s market share.
GM has (almost) none of the drama associated with Tesla and has been making a record number of cars and trucks since the company was founded way back in 1908. It’s a boring company, but in a good way.
On the other hand, Tesla has run into issues with consumer cost and scale. Until recently, Tesla had no ability to manufacture overseas and even the lowest-cost Tesla Model 3 is still too expensive for the average person to buy.
GM doesn’t have those problems. It has factories all over the world if it decides to use them for EV production. Plus, GM plans to reduce cost by reducing what it sees as needless complexity while simultaneously increasing battery capacity.
As for specs, GM says the platform will support somewhere around 400 miles of range. Right on par with Tesla’s latest long-range version of the Model S — which now has 390 miles of range.
Ultium will also support fast charging. This is essential because the Ultium’s battery range will go from 50 kWh all the way up to 200 kWh — twice as large as any currently offered Tesla battery.
But what really makes Ultium so special is that it turns EV production into a giant set of Legos. GM’s different brands (Chevy, Buick, Cadillac and GMC) can have free reign to make whatever vehicle customers want with the platform. Compare that with Tesla’s three (four if you count the upcoming Model Y) cars it currently offers.
As of now, there’s only a tentative timeline for the new platform. But GM expects it can sell 1 million new Ultium EVs by 2025, according to a GM press release.
I will keep an eye on GM and see what it plans to do with the platform. The Ultium platform may not be a Tesla-killer yet but it should be giving Elon cause to stop and think.
To a bright future,
Chief Technology Expert, Technology Profits Daily