GM Bolt Vs. Tesla Model 3 — Metrics Make The Difference

Editor's Note: This is an article excerpt from Seeking Alpha by EVANNEX Founder Roger Pressman.

Summary

• The GM Bolt presents the first real competitor for the Tesla Model 3.
• Much of the current media coverage of Bolt vs. Model 3 is ill-informed and hyperbolic.
• A combination of generic and BEV-specific metrics can be applied to compare the vehicles.
• Range is an issue, but many other metrics should be applied.
• Vehicle characteristics matter, demand and the ability to ramp up production are pivotal.

Over the past few years, there has been heated debate about the proper valuation for a company like Tesla. At the risk of over-simplifying, many who defend Tesla's valuation do so by suggesting that demonstrably high demand for the forthcoming Tesla Model 3 — a lower price point, higher volume battery electric vehicle (BEV) — will generate the requisite revenue and profit to justify the company's valuation. Those who are concerned about Tesla's valuation suggest that competitive BEVs will impact demand for Tesla's products, thereby impacting sales volume, thereby negatively affecting sales and profitability and ultimately impacting stock price.

Currently, there is only one competitive BEV that will be available before the Tesla Model 3 is available to the market — the GM Bolt. In recent weeks, there has been much media buzz about the competitive posture of the GM Bolt with respect to the Tesla Model 3. This has been fueled by GM's announcement that the Bolt will achieve an EPA rated 238 miles of range on a full charge, giving it an eight percent range advantage…

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