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Is Tesla Inc (TSLA) Losing To General Motors Company’s (GM) Chevy Bolt?

The market for electric vehicles continue to grow as evidenced by the rise in unit sales for the month of August.

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Tesla Inc (NASDAQ:TSLA) shareholders have had a great couple of years as TSLA stock has recovered from a mid-February 2016 multi-year low, gaining 123% to new highs in the process. But is it all coming to an end?

Is Tesla Inc (TSLA) Losing To General Motors Company's (GM) Chevy Bolt?
Source: Tesla Motors

As evidenced by just-released electric vehicle sales for the month of August, TSLA can no longer claim leadership position in the electric car market it created. There are now concerns that the 15-year old California-based electric car maker, which has surpassed Detroit-based automakers General Motors Company (NYSE:GM) and Ford Motor Company (NYSE:F) in market cap, stands to lose much more of its value in the quarters ahead.

Electrifying Auto Sales for August

The good news is that the market for electric vehicles continue to grow as evidenced by the increase in unit sales for the month of August. Unfortunately, sales trends also show that TSLA, which just released its highly-anticipated Model 3 car — built for mass production — is being outpaced by GM’s all-electric Chevy Bolt, which sold a record 2,107 units in the U.S. market during August, a 7% jump from the previous month.

TSLA, on the other hand, sold only 75 Model 3 cars, according to InsideEVs, which tracks electric vehicle sales. It was the sixth-consecutive month that Bolt sales topped TSLA, with GM moving 11,670 cars off the lot so far this year.

Sure, Tesla has hundreds of thousands of pre-orders. But those pre-orders actually have been seeing cancellations. And previous production problems at Tesla are well-documented.

But it matters.

There were several factors in place for the gap, not the least of which is the fact that August was the first month that the Chevy Bolt — first launched last year — was available nationwide. But it’s also possible that electric vehicle enthusiasts are comparing vehicle specs and realizing that the Bolt — which Consumer Reports notes has a driving range of 238 miles on a single charge (above the Model 3’s 220 miles) — offers more value.

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“Of course, no car is chosen for its range alone,” noted the publication. “The Bolt EV did so well in CR’s testing that this recommended vehicle now ranks No. 2 among all-electric vehicles, trailing only the far more-expensive Tesla Model S. The Bolt gets good marks for range (of course), agility, and its quiet cabin.”

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Article printed from InvestorPlace Media,

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