Detroit's three automakers should focus on their core businesses, including gas-powered trucks, and not the Chinese market in the next few years while pursuing advancements in electric-vehicle technologies until they can be produced with similar profitability as Tesla, a Bank of America Corp. analyst said on Tuesday.
With a $17,000 component cost difference between the average U.S. EV and a Tesla, EVs being produced by the Detroit Three aren't competitive and won't be for several more years, John Murphy, Bank of America Securities research analyst, said during a presentation of the annual "Car Wars" report. That means General Motors Co., Ford Motor Co. and Stellantis NV should focus on where they are making profits now to fund the research and development needed for the EVs of the future that customers will be able to afford.
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