5 Reasons Tesla Will Eat GM’s Lunch in EV Sales
Who’s ahead in EV sales?
As electric cars become much more popular on the American market, it’s a big question as people are wondering who’s winning the electric vehicle battle.
Here are some reasons why Tesla, a car maker dedicated to electric options, seems to be coming out in front.
One thing that’s hobbling big companies like GM that also make gasoline vehicles is the process of clawing out from the financial crash of 2008.
This Green Car Reports article talks about how GM and other big automakers may be late to the game in terms of cashing in on EVs. It talks about GM spending $17 billion to buy back its own stock. It suggests this has a big impact on bottom-line budgets.
Car companies have to invest money into research and development to go electric. That seems to be harder for traditional automakers than it is for Tesla.
The Big Lean
Here’s another interesting challenge with electric vehicle sales by companies like Ford and GM.
Simply put, people feel like the new administration is not very green-friendly. As a result, American carmakers with a choice between gasoline and electric may feel political pressure. People are already wondering whether the big federal tax subsidies for EVs are going away soon.
In this environment, some feel like GM and Ford are pulling punches with electric vehicle promotions. This, again, cedes ground to other companies like Tesla.
Doing Other Things
Here’s another reason that Tesla is grabbing more headlines when it comes to electric car production.
Look at all the other initiatives Tesla is pursuing around sustainable transport. There is the Hyperlink One project slated for the Middle Eastern region. There is also Musk’s space program under SpaceX.
These other initiatives funnel attention and publicity back to Tesla to help polish the brand. By contrast, when people think about Ford and GM, they often think about the financial pressures mentioned above.
Given a Choice
There is word coming down that federal government might relax miles per gallon restrictions initiated during the Obama years.
This gives traditional car companies a chance to move backward. They can go back to peddling their gasoline lineups. However, other companies like Tesla and international electric vehicle makers can specialize and compete in the EV space.
Look for these kinds of change to determine what you see on local lots.