General Motors (NYSE:GM) Turns To Battery Development In A Bid To Compete With Tesla Inc (NASDAQ:TSLA)

General Motors (NYSE:GM) was quite impressed after managing to make an adjusted net income amounting to $50 billion. These are financial results for the past five years. Matters seem different for Tesla Inc (NASDAQ:TSLA), which incurred a loss of about $5 billion. On a good day, one would expect investors to opt for GM, but that is not the case!

Investors exude confidence in Tesla

Reports show that a lot of investors have more confidence in Tesla, which is under the leadership of Elon Musk. These investors say that GM’s business performance can’t blind them because they have to consider what matters the most. They want to stay with Tesla because the company is known to be more knowledgeable when it comes to handling all the challenges that are associated with electric cars.

Barra’s take

The GM Chief Executive Officer of GM, who is known as Mary Barra and the technical staff in the company, seems quite optimistic. They believe that the company has all that it takes to take over market leadership by beating Tesla in electric vehicle manufacturing and sale.

Barra told journalists that as a company, they had great confidence in their killer app. She asserted that their battery requires some low-cost raw materials, which took down the production costs. One of the elements used in the production of the batteries was cobalt, which goes at pretty expensive rates. He says that it has cost them highly even though it is a good material when it comes to the storage of energy.

General Motors aspires to beat Tesla

General Motors takes the stand that beating Tesla in the game requires one to employ working tactics. It believes that it is a great idea paying focus on battery development. The business guru asserts that the cost of a battery could turn off many consumers thinking about profitability.

Tesla has been at the front, and that is considering that it focuses on batteries that could sustain a car for about 300 miles on a single charge.GM has learned about Tesla’s strength and wants to “take the war to its gate.” It seeks to produce affordable batteries and that, together with the company’s global reach, will work a huge deal.

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Published by Fiona Gibson

Fiona is a finance graduate and an expert in analyzing market trends.

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