GM lowers the price of its anti-Tesla weapon

General Motors (GM) – Get General Motors company report has just launched a real revolution in the electric vehicle market.

Legacy automaker takes rivals by surprise in hopes of upending the entire industry and going into the mano a mano battle that Tesla (TSLA) – Get the Tesla Inc report and Ford (F) – Get Ford Motor Company report are currently engaged. And GM is taking the plunge to win over consumers fond of electric vehicles at a time when gasoline prices at the pump are breaking records.

Indeed, while GM has big ambitions for electrification, the company, led by Mary Barra, recently left its two competitors, as well as Volkswagen (VWAGY) – Get Volkswagen AG report and Mercedes-Benz (DDAIF) make headlines.

Certainly, GM has launched production of the long-awaited Cadillac Lyriq SUV, the first electric vehicle from its premium Cadillac brand. But the group was down despite strong orders for the GMC Hummer electric pickup/truck, a cleaner version of the iconic Hummer.

GM offers electric vehicle under $30,000

Things are about to change. GM has decided to drastically lower the prices of its entry-level model, the Chevy Bolt. This vehicle, nicknamed the “Tesla Killer” of the automaker Dearborn, will be sold below the symbolic bar of $30,000. The Chevy Bolt will thus become the most affordable electric vehicle on the market.

Pricing for the 2023 model year Chevrolet Bolt sedan with 1LT trim will start at $26,595 including dealer freight, the company announced on the car’s dedicated website. 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 the 2022 model year. The price drop is 16.5 percent.

GM also lowered prices for the SUV version of the Bolt, the Bolt EUV. The standard 2023 Bolt EUV starts at $28,195 including dealer freight, down 18.3 percent. The premium Bolt EUV will now cost $32,695 from $38,995, down 16.15%.

Since April, the Chevrolet Bolt EUV has had a Redline Edition, which is basically an appearance package. It has two versions, LT and Premium. The 2023 model year Redline Edition will cost $495 more than Chevy Bolt EUV prices.

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GM’s decision is a thunderbolt as competitors raise prices to preserve margins in the face of soaring commodity prices, such as nickel, which is very important in battery development.

The company can thus tap into a large pool of consumers who want to drive an electric vehicle but who were on the sidelines due to high prices.

“This change reflects our continued desire to ensure Bolt EV/EUV are competitive in the marketplace,” a spokesperson told TheStreet in an emailed statement. “As we said, affordability has always been a priority for these vehicles.”

Game changer?

The Tesla Model 3, Tesla’s entry-level electric vehicle originally aimed at the masses, costs $46,990 at base price. The 2022 Ford Mustang Mach-E starts at $43,895.

GM’s bet could indeed pay off and relaunch the Chevy Bolt, eclipsed in particular by Tesla’s Model 3.

GM began selling the Chevy Bolt EV in 2016 and the Bolt EUV in 2021. The car, billed as GM’s mainstream electric car intended to compete with the Tesla Model 3, was meant to see the legacy automaker catch up with the company. ‘Elon Musk. in the EV market.

While the Bolt immediately won over the media, it also quickly ran into trouble. In April, GM resumed manufacturing the Chevy Bolt after a months-long suspension due to a battery issue 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 catastrophic for the Bolt, whose design has evolved quite a bit. Only 25 of the cars were sold in the fourth quarter, down from 6,701 vehicles a year earlier.

GM delivered 358 Bolts in the first quarter of 2022.

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