General Motors Starting to Sweat Over Tesla

by Karl Utermohlen | July 19, 2013 12:08 pm

General Motors Starting to Sweat Over Tesla

General Motors (GM[1]) is starting to show concern that Tesla Motors (TSLA[2]) seems to be one step ahead of it.

Bloomberg reports[3] that General Motors CEO Dan Akerson believes Tesla could cause a major power shift in the car industry unless other companies manage to catch up.

Although GM is a more recognizable name in the automotive industry, its recent failures — combined with Tesla’s technological advancements — have GM thinking about what to do next.

Tesla has been on the upswing lately due to its new electric vehicles which can be recharged by plugging them into an electric outlet. These vehicles are already showing their worth as Tesla’s Model S outsold GM’s Volt despite the fact that the Model S’s retail price was about 30,000 more than the Volt upon release.

Akerson recently hired a team from within to study Tesla’s technology with the purpose of catching up with the electric car-maker. Although the last Volt wasn’t as successful as the Model S, GM engineers are working hard on the new Volt, which is slated to come out in 2015 or 2016.

Endnotes:
  1. GM: http://studio-5.financialcontent.com/investplace/quote?Symbol=GM
  2. TSLA: http://studio-5.financialcontent.com/investplace/quote?Symbol=TSLA
  3. Bloomberg reports: http://www.bloomberg.com/news/2013-07-18/akerson-demands-gm-innovation-to-guard-against-musk-effect-cars.html

Source URL: http://investorplace.com/2013/07/gm-showing-worry-over-tesla/
Short URL: http://invstplc.com/1frnTI0