General Motors Company (NYSE:GM) chief executive officer Dan Akerson said that they have plans to take on electric car company Tesla Motors Inc (NASDAQ:TSLA) through the Cadillac brand. Aside from talking about how GM will compete with Tesla, Akerson praised them for being able to establish a brand compared to other startup electric vehicles.
?Does anybody even remember Fisker? I mean, there were a number of them; they are all gone,? stated Akerson at an interview in Washington recently as quoted by The Detroit News.
?If you want to compete head-to-head with Tesla, and we ultimately will, you want to do it with a Cadillac,? added Akerson. Akerson said that they will sell more Chevrolet Volts and lose less money on the cars than Tesla will lose on the Model S. Tesla Motors Inc (NASDAQ:TSLA) hit profitability this year, largely due to government credits that their customers receive such as zero-emission.
This past July, it was reported that Dan Akerson set up a team to watch Tesla Motors. The Tesla Model S won top safety scores by the National Highway Traffic Safety Administration and Consumer Reports named the Model S as the best-scoring car.
Earlier this week, General Motors announce that they would be expanding their battery development lab in Michigan. GM executive Doug Parks also said that they are working on an electric vehicle that can drive 200 miles per charge with a cost of about $30,000.
Tesla Motors Inc (NASDAQ:TSLA) CEO Elon Musk praised GM’s announcement about the electric vehicle in a tweet. He said ?Am happy to hear that GM plans to develop an affordable 200-mile range electric car. Right target. Hope others do same.?
Tesla is also working on a lower cost electric vehicle with a 200-mile range, which is expected to release in 2016.
Akerson said that when the Cadillac ELR comes out later this year or early next year, it will most likely not be a mass-produced car. The new ELR has a power train that is similar to the Volt. The interior will be luxurious than the Volt as it will have leather and carbon fiber.