GM is struggling to catch up with Tesla in the electric vehicle market due to their lack of profitable solutions and viable products, and their decision-making capability and execution are lacking, leading to a focus on short-term profits over long-term success
Questions to inspire discussion
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Why is GM struggling to catch up with Tesla in the electric vehicle market?
—GM is struggling due to their lack of profitable solutions and viable products, as well as their focus on short-term profits over long-term success.
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What does Mary Barra acknowledge about Tesla's success in the EV market?
—Mary Barra acknowledges Tesla's success and credits them for helping to grow the industry.
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How does GM compare to Tesla in terms of EV investments and production capacity?
—GM and Ford are behind in EV investments and production capacity compared to Tesla, with a bad strategy for over 10 years.
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What is GM's plan for selling electric vehicles in the future?
—GM plans to only sell electric vehicles by 2035, but they are now open to adjusting their plans based on consumer demand.
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What is GM lobbying for in terms of government regulations for EVs?
—GM is lobbying to align regulations with customer demand for charging stations and to slow down government promotion of EVs to avoid hefty fines for fuel economy.
Key Insights
- 📈 The massive difference in investment returns between General Motors and Tesla over the past 14 years highlights the success of Tesla and the challenges faced by traditional automakers.
- 🔄 General Motors now sees Tesla as competition in the EV market, signaling a shift in dynamics for the industry.
- 📉 Mary Barra's response didn't address the fact that GM hasn't been able to produce a profitable solution under $40-50,000, making their current products "debt on arrival."
- 🚗 GM's plan to end gas powered vehicle sales by 2035 is still open-ended and dependent on consumer demand.
- 💡 The comparison of the investment return between GM and Tesla over the past decade challenges the traditional view of Tesla being overvalued and GM being the better buy.
- 🚗 Tesla is able to meet and exceed all standards that the government is essentially ignoring, highlighting the disparity in treatment between traditional automakers and Tesla.
#Tesla #Investment
Clips
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00:00 📈 Mary Barra of GM acknowledges Tesla's success in the EV market and credits them for helping to grow the industry.
- Investing in Tesla 14 years ago would have resulted in a much higher return than investing in General Motors.
- Mary Barra of GM acknowledges Tesla's success in the EV market and credits them for helping to grow the industry.
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01:47 🚗 Tesla's commitment to electric vehicles has led to increased competition in the industry, with GM and Ford lagging behind in investments and production capacity.
- General Motors has always taken electric vehicles seriously, but Tesla deserves credit for staying committed and helping the EV market grow, leading to increased competition in the industry.
- GM and Ford are behind in EV investments and production capacity compared to Tesla, with a bad strategy for over 10 years.
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04:11 💡 GM's Mary Barra acknowledges Tesla's lead in electric vehicles, but GM struggles to catch up with Tesla's performance and production capabilities due to lack of profitable solutions and viable products.
- Mary Barra from GM acknowledges that Tesla has been working on electric vehicles, but has not been able to produce a profitable solution, leading to a lack of viable products and a struggle to break even in their business.
- Consumer demand for EVs is driving growth, and GM may struggle to catch up with Tesla's performance and production capabilities.
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06:04 🚗 GM is struggling to release a scalable electric vehicle, but is open to adjusting plans based on consumer demand and lobbying for achievable vehicle emissions standards.
- GM is in trouble and needs to release a scalable product to break even, but it's unclear if they know how to do it, and their actions and words are contradictory.
- GM plans to only sell electric vehicles by 2035, but they are now open to adjusting their plans based on consumer demand.
- GM has delayed production of EVs and scrapped plans to develop affordable EVs, but is now lobbying the government for achievable vehicle emissions standards.
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08:34 🚗 Mary Barra of GM is pushing for regulations to align with customer demand for charging stations and to slow down government promotion of EVs, sparking speculation about GM's potential investment in electric vehicles research.
- Mary Barra of GM is lobbying to align regulations with customer demand for charging stations and to slow down government promotion of EVs to avoid hefty fines for fuel economy.
- Analysts used to say GM was a better investment than Tesla, but now there's speculation about how GM could use their advertising budget to invest in research for electric vehicles.
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10:47 🚗 Automakers have significant lobbying power and influence on policy, while Tesla is able to meet and exceed government standards for electric vehicles.
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12:09 📈 GM CEO Mary Barra's claim to outsell Tesla in EV sales has not materialized, with Tesla selling 488,000 EVs in the US compared to GM's 56,000, and GM's investments in Nicola and Lordstown Motors were based on overestimated production numbers.
- GM's influence campaign and investment decisions have a significant impact on consumers and could have resulted in different outcomes.
- GM CEO Mary Barra claimed in July 2022 that GM would outsell Tesla in EV sales by mid-decade, but as of Q3 2023, Tesla has sold 488,000 EVs in the US compared to GM's 56,000, and GM's investments in Nicola and Lordstown Motors were based on overestimated production numbers.
- 14:14 📉 GM's decision-making capability and execution are lacking, leading to a lack of confidence from investors and a focus on short-term profits over long-term success.
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