Tesla's lead is temporary with no mass-market EVs, says GM CEO Mary Barra
Tesla is undoubtedly leading the pack of electric car manufacturers. The innovative EV company has been selling more than a million cars worldwide. However, this lead is temporary as Tesla doesn't have any profitable, mass-market electric cars in its lineup, believes General Motors' CEO Mary Barra. The GM CEO rarely talks about Tesla, and she almost never praises or gives it the due credit for any success the electric cars have today. However, with her latest comment, she indirectly admitted that Tesla leads the EV space with its innovative technology, profitability and scale.
The GM CEO believes that Tesla's pack of electric cars priced at $30,000-$40,000 will not be profitable by the end of this decade as consumers seek more affordable mass-market options. Her clear indication was to the fact that even if Tesla currently holds the pole position in the global electric car market, it doesn't sell any mass-market products affordable for regular consumers. Hence, the lead would be temporary.
Mary Barra further went on to talk about profits. She noted that the cost of manufacturing electric cars is still so high that they can not be sold at low prices without affecting profitability. Interestingly, her comment comes at a time when Tesla has slashed the pricing of its electric cars several times in the last few months of 2022 and in the first quarter of this year and still remains profitable.
Electrek reports that the GM CEO hinted at her company overtaking Tesla's lead gradually. However, she didn't say it direct and loudly. Over the past few years, General Motors has promised a whole host of electric cars, which include many affordable mass-market models. However, only a handful of high-priced models have been launched in the market, which include the GMC Hummer EV and Cadillac Lyriq. Moreover, General Motors has decided to pull the plug on its most affordable electric cars: the Chevrolet Bolt EV and Bolt EUV. However, the carmaker is expected to grab the attention of the EV world soon with the Chevrolet Equinox EV and with many other similar options thereafter.