In a recent statement at the Sanford Bernstein conference, General Motors (GM) CEO Mary Barra acknowledged Tesla’s current lead in the electric vehicle (EV) market. While she expressed confidence in GM’s ability to catch up, Barra admitted that she doesn’t anticipate profitable electric cars in the $30,000 to $40,000 price range until the end of the decade or possibly even later (via Reuters).
Barra pointed out that the high cost of EV batteries remains a significant hurdle in building mass-market vehicles that can generate profits. However, her prediction is that the cost of EVs and combustion engine vehicles will eventually equalize “sometime in the latter part of this decade… maybe a little longer.”
Interestingly, this remark raises eyebrows given that GM is currently selling the Chevy Bolt EV, which starts at $26,500, and has plans to introduce the Equinox EV with a starting price of approximately $30,000. While the Bolt EV is phasing out by year-end, its profitability has always been a subject of speculation.
The Equinox EV, on the other hand, is expected to enter the market this year. Although the base version priced around $30,000 may not be immediately available, it is anticipated to arrive well before the end of the decade.
Barra’s cautious stance on the profitability of affordable electric cars is met with skepticism. Critics argue that GM’s existing offerings in the lower price range demonstrate the potential for achieving profitability sooner than Barra suggests. Moreover, with advancements in battery technology and increasing economies of scale, the trajectory of EV costs could change significantly.
As the industry continues to evolve, GM’s ability to catch up to Tesla and capitalize on the growing demand for electric vehicles will undoubtedly depend on its innovation, cost optimization, and strategic positioning. While Barra’s perspective reflects the challenges of the present, the future of affordable, profitable electric cars may hold surprises that could reshape the automotive landscape sooner than anticipated.
