General Motors (GM) has just launched a real revolution in the electric vehicle market.
The legacy automaker is taking its rivals by surprise in the hope of turning the entire industry upside down and getting into the mano a mano battle that Tesla (TSLA) and Ford (F) are currently engaged in. And GM is making the move to conquer consumers fond of electric vehicles at a time when prices gasoline at the pump are breaking records.
Indeed, while GM has great ambitions in electrification, the company, led by Mary Barra, has recently let its two competitors, as well as Volkswagen (VWAGY) and Mercedes-Benz (DDAIF) , make the headlines.
Certainly GM has started the production of the long-awaited Cadillac Lyriq SUV, the first electric vehicle of its premium Cadillac brand. But the group was in retreat despite strong orders of the GMC Hummer electric pickup/truck, a cleaner version of the iconic Hummer.
GM Offers an Electric Vehicle Under $30,000
Things are about to change. GM has just decided to drastically reduce the prices of its entry-level model, the Chevy Bolt. This vehicle, dubbed the "Tesla Killer" of the Dearborn vehicle manufacturer, will be sold below the symbolic bar of $30,000. The Chevy Bolt will thus become the most affordable electric vehicle on the market.
The price of the Chevrolet Bolt sedan model year 2023 with 1LT trim, will start at $26,595, including dealer freight charges, the company announced on the website dedicated to the car. The cost of the 2022 model year Chevy Bolt 1LT trim was $32,495. This is therefore a price reduction of 18.15%.
The 2LT, which includes leather seats, HD surround vision, and lane-change alert, will start at $29,795 from $35,695 for model year 2022. The price decrease is 16.5%.
GM has also lowered the prices of the SUV version of the Bolt, the Bolt EUV. The standard 2023 Bolt EUV starts at $28,195, including dealer freight charges, down 18.3%. The premium Bolt EUV will now cost $32,695 from $38,995, down 16.15%.
Since April, the Chevrolet Bolt EUV has a Redline Edition, which is basically an appearance package. It has two trims, LT and Premium. The Redline Edition model year 2023 will cost $495 more than the prices of the Chevy Bolt EUV.
GM's decision is a thunderbolt because competitors are raising prices to preserve their margins in the face of soaring raw material prices, such as for nickel, which is very important in battery development.
The company can thus tap into a large reservoir of consumers wishing to drive electric vehicles but who were on the sidelines because of high prices.
"This change reflects our ongoing desire to make sure Bolt EV/EUV are competitive in the marketplace," a spokesperson told TheStreet in an emailed statement. "As we’ve said, affordability has always been a priority for these vehicles."
Game Changer?
The Tesla Model 3, Tesla's entry-level electric vehicle initially aimed at the masses, costs $46,990 at base price. The 2022 Ford Mustang Mach-E starts at $43,895.
GM's gamble could indeed pay off and revive the Chevy Bolt, which was eclipsed by Tesla's Model 3 in particular.
GM started to sell the Chevy Bolt EV in 2016 and the Bolt EUV in 2021. The car, considered GM's mass-market electric car aimed to compete with the Tesla Model 3, was supposed to enable the legacy carmaker to catch up with Elon Musk's company in the EV market.
While the Bolt immediately won over the media, it also ran quickly into problems. In April, GM resumed manufacturing the Chevy Bolt after a suspension of several months due to a battery problem that forced a recall.
The company delivered 24,828 Chevrolet Bolt cars in 2021, up 20% from 2020, despite the recall. The end of the year was disastrous for the Bolt, whose design has evolved quite a bit. Only 25 of the cars were sold in the fourth quarter, compared with 6,701 vehicles a year earlier.
GM delivered 358 Bolts in the first quarter of 2022.
