General Motors Company (NYSE:GM) has moved the release of its Bolt electric car to August as opposed to September that has earlier been proposed. The move is seen as a way of countering Tesla’s plan to start shipping the rival Model 3 vehicle this summer.
Tesla is expected to roll out the first Model 3in July. The company currently has around 400,000 reservations hence may not be in a position to honor any new order up mid-2018. This implies that General Motors’ Bolt is likely to benefit from the extra unmet demand. The two vehicles are prices at around $35,000and have a range of over 200 miles.
According to a GM representative, the launch was rescheduled because the company was ahead of schedule in training staff and inventory for the new vehicles. GM first launched The Bolt in Oregon and California in December last year. The company later extended the electric vehicles to an additional six states in April this year.
Even in the few markets that the company has launched the pilot project, the demand for the electric vehicles has been above supply. While commenting on GM’s decision, Tesla CEO Elon Musk took to Twitter to highlight the irony. He said that he was inspired by GM’s move to call off the launch of electric vehicles in 2002.
The Bolt is in the question of EV-1. The company recalled the cars because they were not sold outright but rather leased out. A 2006 documentary called Who Killed the Electric Car? highlights the reasons that led to the recall of the vehicles.
Although it was technologically groundbreaking, the EV-1 was largely viewed as unprofitable. Additionally, it met a lot of resistance from environmentalists. Tesla’s success has however revealed that GM made a big mistake in giving up on the new technology.
General Motors produced over 1,000 Ev-1s in a period of five years. However the company has sold around the same amount per month in the few limited markets it has tried out the vehicles. The market for electric vehicles has grown exponentially with studies indicating that the demand may go up to 740,000 annually by 2024.
General Motor stock opened the Monday session at a +0.67% of $+0.23 raise to trade at $34.34. a total of 32 million shares were traded.