General Motors Company (NYSE: GM) Is Set To Dominate the EV Market In Future
Most people (investors and consumers alike) think of Tesla Inc (NASDAQ: TSLA) whenever the idea of a company dominating the electric vehicle market is mentioned. However, I propose that the General Motors Company (NYSE: GM) is a better candidate for dominating the EV market despite the fact that it currently sells only one EV model, the Chevrolet Bolt.
GM is better positioned to dominate the EV market as compared to Tesla.
The company is set to launch at least 20 new EV models by 2023.
The company is gaining EV market share in both the US and China.
I will endeavor to outline the main differences between GM and Tesla in order to provide proof for the argument that GM is better positioned to dominate the EV market. Firstly, GM is a highly profitable automaker and has been for many years as opposed to Tesla, which has not returned a profit over the past 14 years of operations.
At a certain point in the future, Tesla will be forced to start operating profitably, or risk going bankrupt as no company can continue burning billions of cash each quarter forever. GM has taken immense strides towards developing EV models under the leadership of its CEO, Mary Barra, given that the company is set to launch at least two new EV models this year.
GM is fully committed to an all-electric future as evidenced by its announcement last year that it would launch at least 20 new all-EV models by 2023. However, the company also realizes that the transition to all-electric vehicles will happen over time, which is why the company continues to sell its gasoline-powered vehicle models.
The company reported in November last year that it was launching a new modular EV platform in 2021, which it will use as the framework for many of its new EV models. The company continues to gain market share in China where it is developing new EV models through joint ventures given that China is keen on shifting to EVs.
The main issues plaguing Tesla include the company’s inability to ramp up its production processes in order to meet key production milestones as has been the case with its Model 3 production. The company is also taking on more debt and burning through billions of investor capital each quarter, which means that the company is likely to go bankrupt once it cannot raise more cash to fund its operations.
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