GM Forms "Team Tesla" To Answer The Upstart Threat

As the electric car maker’s market value has soared in the past year, the 10 year old company could even soon take over the 105 year old auto maker – a situation that called GM to action.

With its shares and market value rising this year by 470%, Tesla is now worth $23 billion, while General Motors only surged a more modest (although very healthy) 25%, to $50 billion. If nothing goes wrong – like let’s say more Model S cars catching fire – next year the biggest American automaker could be overshadowed by a constructor that only builds electric cars and so far has only one model on the market.

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MattDarringer - 10/6/2013 11:38:58 AM

+1 Boost

I find it utterly hilarious that Tesla is being taken seriously. The S is their first car ever that THEY engineered. Bolting batteries into a Lotus does not make one a car company with credibility. The real test of Tesla will be their reliability over time. When they reach 100K miles, what will have been their reliability record? Given that unknown, to trumpet Tesla as the automotive holy grail is laughable. Tesla is more confidence scheme that real threat. It doesn't have technology that the big manufacturers don't have as well. Besides that, I would not spend that much money on what looks like a bloated Fusion. GM's technology in the Volt is more coherent than Tesla's pure EV approach, a car that turns into a paper weight when the battery dies.