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General Motors To Tesla: We're Coming First

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The battle between Model 3 and Chevy Bolt is becoming interesting with each passing day as the buzz over the upcoming electric cars is huge.

However, one of the key factor that works in favor of General Motors Company (NYSE: GM)'s Chevy Bolt against Model 3 of Tesla Motors Inc (NASDAQ: TSLA) Model 3 is that GM's vehicle may hit the market first. As such, it may get the first mover advantage over Model 3.

According to a report from USA Today, Dan Nicholson, GM's vice president of global propulsion systems, said, "I am very proud of the Chevrolet Bolt that's coming out, which will be the first to market as a long-range affordable battery electric vehicle."

"It will have more than 200 miles of range and it will be in production by the end of 2016, so it's not necessary to put down $1,000 and wait until 2018 or sometime after that," Nicholson reportedly said at an engineering conference in Detroit.

Related Link: Detroit News Auto Critic: Tesla Model 3 Is 'The Auto Story Of The 21st Century'

Tesla recorded 325,000 preorders for Model 3, implying future revenues of about $14 billion. A customer needs to deposit $1000 for making a reservation.

Tesla CEO Elon Musk says the company will start delivery of the Model 3 to customers in late 2017.

The USA Today report said "Tesla is burning through $400 million of cash each quarter and may need to borrow money or raise capital to produce the Model 3."

"GM's balance sheet is in pretty strong shape, so we don't need to take $1,000 of your money just to hold a spot," Nicholson said.

GM's Chevy Bolt could cost about $37,000, while Tesla's Model 3 will be priced at $35,000. Both cars are expected to fiercely compete in the affordable electric car segment.

 

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