Cadillac is getting ready to take on electric car maker Tesla Motors, The Detroit News quoted General Motors chief executive Dan Akerson as saying. The daily reported that GM is planning "to compete head-to-head" with Tesla, and has formed a small team to study Tesla. Akerson told the paper that Tesla has established itself as a high-end electric brand, but remarked that GM will "sell more [Chevrolet] Volts and lose less money on the Volts than they'll lose on the Model S."
Compared to the Tesla Model S that has a starting price of $71,070, including shipping and before incentives, the 2014 Chevrolet Volt has a sticker tag of $34,995, including shipping and before federal tax credits.
He remarked that he is still unconvinced that pure electric vehicles are the "panacea" that the American public wants, but understands that it could be possible in the future. He cited Fisker Automotive as an example, saying that a number of electric carmakers like the startup are now all gone.
Doug Parks, GM's vice president for global product programs, disclosed last week that the US carmaker is working on a $30,000 electric car that boasts of a 200-mile range. The announcement moved Tesla CEO Elon Musk to tweet: "Am happy to hear that GM plans to develop an affordable 200-mile range electric car. Right target.
Hope others do same." GM is planning to sell the next Volt at $7,000 to $10,000 less. Industry sources estimate the timing of the next generation Volt to be in late 2015 or early 2016. Akerson told The Detroit News that when Cadillac ELR arrives late this year or early 2014, it will be “in the same postal code as Tesla.”