A while back, I mentioned the similarities between the late Steve Jobs of Apple and Elon Musk of Tesla Motors. That really came to the forefront of my thoughts, while watching the Tesla Model 3 event.
Tesla is the new Apple. I should know. I’ve been an Apple fanboy since 1980, when I got my first computer, an Apple II+. I worked for Apple for three years, during the tenure of Mr. Jobs. For a decade, I ate, drank, slept, dreamed Apple. I got my first iPhone (the original) on Launch Day at an Apple Store, in Boulder, Colorado, while I was on vacation. I got my first iPad (the original) on Launch Day, even though I had no interest in it, until I held it in my hands.
Although Apple Stores can still have lines of customers, on a product launch day, they’re not what they used to be. Although an Apple Keynote or new product announcement can still bring the Internet to its knees and the live audience to its feet in cheers, they aren’t the only show in town anymore.
The Tesla Model 3 Event was so Apple-like, it bugged me, deep down. As I became aware of my annoyance, I stepped back to consider why. I mean, I like the looks of the Model 3 (except for the “fish lips” where a grill would go on a traditional ICE vehicle…). I like the performance. But all I could think was, “You’re all cheering for a car that won’t be available for another 20 months or longer, when there’s another EV with a 200 mile range, priced in the mid-30’s that will go into production this October!”
It’s called the Chevy Bolt.
I understand the importance of the announcement. When you cannot be first to market with a new product category (in this case 200 mile range, around $30K), it is important to delay the market acceptance of the competitor’s new product, by announcing your new product meant to compete with it. This has been going on in the electronics business for decades and it’s no surprise the EV market is following gadget marketing principles.
However, it seems to run counter to Elon Musk’s stated desire to move the world into a new transportation paradigm. He gave away access to Tesla’s patents for that reason. He always says he likes strong competitors rising to compete with Tesla, because it helps adoption (and eventual dominance) of EVs. But this announcement gives me indigestion for more than the obvious reason that I’ve become a General Motors EV salesperson. I don’t want anything delaying adoption of ANY plug-in vehicles, currently available. I want to see EVs succeed as well, but like Mr Musk, I have a vested interest in a particular manufacturer, namely General Motor and their Chevy EVs/hybrids.
By announcing the Model 3 so far in advance, Tesla has scooped up deposits from 300K+ EV buyers, which removes them from the list of potential buyers of current EV models and delays their joining the world of EV ownership. In addition to this, it amazes me that no one seems to be talking about what that many orders means, to the Tesla customers, namely that a great number of them won’t qualify for the full $7,500 Federal Income Tax Credit. That’s because, once a manufacturer has sold 200,000 plug-in vehicles, the credit starts to phase out. According to Inside EVs, Tesla Motors has already sold over 68,000 Model S’s in the U.S. At the rate they’re selling now, (about 2,000 per month), 20 months from now, they’ll have sold over 100,000 in the U.S., leaving only 100,000 Model 3’s (of the 300,000 pre-ordered) with eligibility for the full tax credit. That means the Model 3 will likely cost much more than consumers realize.
But the thing that really gripes me is: WHEN WILL GENERAL MOTORS FIGURE OUT HOW TO PROMOTE THE VOLT AND BOLT???
EVERY. SINGLE. DAY. I speak with a car buyer who has never heard of the Volt, or is surprised they still make them, or who believe electric cars spontaneously combust. Rarely have I ever met anyone who has heard of the Bolt. General Motors has a technological lead, right now, that I am afraid they’re squandering.
In my manufacturing career, I was told, over and over, the importance of being first to market with a new product/category.
You just can’t keep the new product a secret…
I am looking forward to the new Chevy Bolt EV. My current lease with the Chevy 2014 Volt will be up in March 2017. I will then lease the new Bolt EV. I would not even consider the Tesla Model 3 since it does not suit my needs. I want a hatchback and 4 doors. I also would not want to wait 2 years or more. I am very happy with my Volt and know I will be happy with the new Bolt EV.
When will Bolt have a national charging network capable of a minimum of 135Kw, prepaid, for road tripping? Until then it’s a city car with about an 80 mile leash.
Exactly!
Should we be surprised that Chevy is not looking forward to a decrease in the recurring revenue stream of the entire auto industry? We’ll see them get onboard when the equation triggers to major losses due to a drop in their market share, not before.
Right. That’s why GM and its dealers make no effort to sell the Volt (except for a few EV enthusiast salesmen like Buzz). You can’t make a good sales pitch for a plug-in without pointing out all its advantages over an IC car.
The Chevy Bolt is an iPod Touch to Tesla’s Model III iPhone. WIthout the mobile towers (charging network), the Bolt is extremely hampered.
However, there is an opportunity to do 3 year leases on Bolts to people waiting for Model III and to disenchanted Leaf and i3 owners.
“Disenchanted” LEAF owners??
Please elaborate! 🙂
my wife want a Bolt now. I have the Volt, already. I agree that the opportunity to make a positive impression is slipping away.
The author of this article is being extremely misleading with respect to the US tax credit.
The credit does not begin to phase out until the start of the second quarter the that begins after a company hits 200k sales… i.e. If they hit that number on the first day of a quarter (Jan 1, Apr 1, Jul 1, Oct 1), sale #200,000 PLUS ALL OTHER CARS DELIVERED IN THE FOLLOWING NEARLY SIX MONTHS will get the full credit. THEN all cars delivered for six months after that would get half credit ($3850), and then a full six months after that one quarter credit ($1925).
The idea that the 200,000 vehicle cap is a hard -fast number (which is what the author seems to be presenting) is completely inaccurate.
Also, the idea that Model 3 buyers will miss out on the credit but it will be available to anyone who wants a Bolt is extremely misleading. GM is actually CLOSER to the cap at this moment than Tesla is (remember, GM also sells the Volt and Spark EV which count against the cap).
It was my understanding that the $1000 deposit is completely refundable. I think a lot of those folks will jump ship when they see Bolts on the road.
Not if GM has no plans for charging infrastructure…. otherwise BOLT will be a 100 mile radius car for most of the states in the country – CA excluding of course
I am excited about Tesla’s Model 3 . If Tesla can actually build a reliable car that’s does everything they promise It will be a game changer. If the first Tesla Roadsters weren’t built. Would it have been possible for Bob Lutz to convince GM to build the Volt?. However being a Volt owner for 2 years, I’ve got to say the Volt is an astonishing technological achievement. And you can buy one new or used today!
But the planners and GM must realize that if they want remain in business they must design more electric vehicles to compete with Tesla. The Volt is an example that they can succeed. The difference is that their focused on what’s profitable to sell today. Tesla’s all about what they can bring to the future. But GM has everything in place to succeed in the future if they thinki that way. Their refusal to support an electric grid and the emphasis on profits over technology and environmental consciousness is a detriment to the companies long term jstability ust as it nearly brought them down in the past. Profits have to be balanced planning for the future. They should realize by now that it’s just cars thief selling – it’s values , sex appeal, coolness idealism and sustainability. What’s cool now? Ask the 300,000 people who put $1000 down on a vaporware car that will not be available for two years or more. The Bolt looks very promising but it’s not the complete package that Tesla is promising with the Model 3. GM and other established auto makers are in for a real shock it Tesla pulls this off. By then I hope it’s not too late.
I think there will Model 3 reservees that will never take delivery and there is a good portion of them that may end up in a Bolt. I think the excitement over the vehicle is awesome and having driven Chevy’s for most of my driving life and being a current Volt owner since 2011, it has always perturbed me that GM has a great product that they rarely even mention. When we bought ours in 2011, we pretty much trained our sales person and the delivery process when the Volt arrived was a joke. We drove it home laughing that the guy did not even know enough to show us the bells and whistles…..but we showed them to him. You have really made a huge difference int eh customer experience for your dealership on the subject of EV’s. I hope as time passes more people will find interest in EV’s and ALL EV’s sell like crazy
Also, please do remember that there is some resentment for GM.
yes…. it is a long time ago that GM killed EV-1….. okay…. we can swallow that pill as other car manufacturers crushed EVs too….
BUT…… where one can not defend is this…
GM is a major playing blocking Tesla from direct sales…..
What say you?
PS. Before you bash me…. I was a 2013 VOLT owner.
PPS… Before you bash me…. I was a 2015 VOLT owner
PPPS…. Before you bash me. I loved my VOLT but that does not translate to GM love or GM diehard fan.
true that
Was a Volt owner? What do you have now?
I posted this on Fb but I know some detest Fb so am posting for those who do not have Fb.
Hey Buzz… Interesting article – always look forward to your articles….. But here are the reasons for elevated excitement for 3 from my understanding:
1. Tesla is the ONLY and I mean ONLY car manufacturer that is truly an electric company only. For them to bring a 3 to market for average consumers is 100x more news worthy than a BOLT where GM has eggs in other basket. Case in point. ELR… a dying species that GM did not care about…. Another data point… Spark EV… the stepson that GM does not want to acknowledge.
2. If BOLT was here, different story… but BOLT is not here…not yet at least…
3. Even if BOLT was here, GM has zero…. zilch… nada…. interst in charging infrastructure…. so with BOLT – it s 100 mile radius car….. where as with 3… and Tesla supercharging, the radius is much much larger….. big difference..
GM makes little to no effort to sell the Volt, and it will make little to no effort to sell the Bolt. Why? Because you can’t sell a plug-in without pointing out all its advantages over gas burners, and GM doesn’t want its dealers and salesmen to bad mouth its gas burning products.
GM isn’t committed to EVs. Tesla is. GM won’t commit to EVs until gas burners are on the way out, and by then, Tesla will dominate the market.
Just talked to a woman who is in the market for a plug-in hybrid (after much lobbying by me), but she won’t consider a Volt because of GM’s reputation for making lousy cars and because Chevrolet isn’t “cool.”
She’s looking at a plug-in Audi.
GM made a huge mistake putting a Chevy badge on its plug-in cars. It should have created a new division for them, or at least made them Buicks or Cads.
General Motors did make a Cadillac-badged plug-in. It’s the ELR and it was priced poorly and will be discontinued. Chevy’s are definitely not cool, with the exception of the Corvette, Volt, Bolt (coming soon), SS, Impala, Camaro, Malibu, Silverado, Tahoe/Suburban…
Specifically, the Volt has been named Green Car of the Year by three organizations so far.
As for “lousy car” reputations, it’s time for her to open her eyes.
Almost everyone has horror stories about GM quality in years past (like my Aurora transmission going out at 52,000 miles just after the warranty expired). Those memories don’t die easily.
Granted, there’s a market for all the models you mentioned, even an enthusiastic market, but I think you will agree that most people who buy Audi, BMW, Mercedes, and Lexus cars want something Chevy doesn’t have, regardless of quality. Snob appeal maybe?