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Tesla Model 3 Makes Chevy Bolt 'Dead-On-Departure,' Chowdhry Says GM Should Cancel The Project

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Tesla Model 3 Makes Chevy Bolt 'Dead-On-Departure,' Chowdhry Says GM Should Cancel The Project
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Trip Chowdhry of Global Equities Research said the Model 3 from Tesla Motors Inc (NASDAQ: TSLA) makes General Motors Company (NYSE: GM)'s Bolt "Dead-On-Departure."

Tesla CEO Elon Musk Tweeted over the weekend, "276k Model 3 orders by end of Sat" and Chowdhry says the number equates to $11.6 billion.

GM's Chevrolet Bolt, which is expected to arrive in late 2016, is considered as a key competitor to Model 3 as it also offers more than 200 miles of range at a lower cost $30,000 versus Model 3's $35,000. But, Chowdhry views otherwise.

"GM should just cancel this project (Bolt); completely misses the mark with the iPhone generation consumer "It's An Ugly - Tiffin Box,"" Chowdhry wrote in a note.

Related Link: Everything Everyone's Saying About Tesla After The Model 3 Launch

"Digitally centered consumer is sick and tired of GM, BMW, Mercedes, Audi, Toyota etc. and almost every existing auto manufacturers who have shown zero innovation and have been producing "Ugly Tiffin Boxes" for decades."

"Tesla Model 3 has been designed for the iPhone generation consumer, whose lives are digitally super-centered ... and competition is completely clueless .. somehow it seems that existing auto manufacturers believe that iPhones can be powered by gasoline and not batteries," he added.

Shares of Tesla were up 3.59 percent at $246.12, while GM was down about 1.9 percent to $29.90.

Latest Ratings for GM

DateFirmActionFromTo
Jan 2017Daiwa CapitalDowngradesNeutralUnderperform
Dec 2016BMO CapitalInitiates Coverage OnMarket Perform
Dec 2016MacquarieInitiates Coverage OnOutperform

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