The CEO’s position boils down to the fact that he does not wish to promote their brands. These companies, ranging from start-ups to veteran automakers, are primarily positioned relative to Tesla, the market leader and benchmark for premium electric vehicles. When new EV models are introduced, they are compared to Tesla’s offerings. Although Musk occasionally makes an exception when asked about the challenges of young electric vehicle manufacturers like Rivian (NASDAQ: RIVN) and Lucid Group (NASDAQ:LCID).
When Tesla (NASDAQ:TSLA) raised production rates for the Model 3, its entry-level vehicle, the automaker encountered many of the same issues.
Musk’s Favorite Target is GM
And Musk is certainly willing to discuss General Motors (NYSE:GM) as a competitor. As if he couldn’t help himself, the billionaire seems to take advantage of every opportunity to disparage GM (NYSE:GM).
GM (NYSE:GM) has recently announced the release of the Chevrolet Blazer electric SUV, which is intended to compete with Tesla’s Model Y SUV. GM (NYSE:GM) announced on July 18 that its Ramos Arizpe plant located in Mexico will produce the Chevy Blazer, a vehicle aimed at middle-income households interested in EVs. Tesla (NASDAQ:TSLA) supporters responded to the announcement on social media. Musk reacted immediately. In particular, he emphasized that the majority of Tesla (NASDAQ:TSLA) cars sold in the United States were produced in the United States.
Tesla (NASDAQ:TSLA) has four manufacturing facilities globally. Two are in the United States, the first in Fremont, California, and the second in Austin, Texas, where Tesla (NASDAQ:TSLA) has been headquartered since 2021. Shanghai and Berlin are the remaining two production sites. These two plants do not serve the market in North America. Their output is intended for Asia, Europe, and the remainder of the globe.
Bad Blood
Musk’s latest attack on GM (NYSE:GM), which also falls indirectly on President Joe Biden, demonstrates that he has not yet accepted that the Democratic president ignored him and Tesla (NASDAQ:TSLA) for an entire year while praising the vehicles of GM (NYSE:GM) and other automakers. Biden had repeatedly asserted that General Motors (NYSE:GM), led by CEO Mary Barra, is at the forefront of the electric vehicle revolution in the United States.
Last November, Biden said, “In the auto industry, Detroit is leading the world in electric vehicles. You know how critical it is?” He added, he remembers talking to Mary [Barra] way back in January about the need for America to lead in electric vehicles. He could remember Mary’s dramatic announcement that by 2035, GM (NYSE:GM) would be 100% electric. He said Mary changed the whole story and she electrified the entire automotive industry. He mentioned that Mary led and it matters. Blogger Johnna Crider commented on Biden, snubbing Musk and Tesla (NASDAQ:TSLA) to put GM (NYSE:GM) on a pedestal.
GM (NYSE:GM) was forced to halt production of the Chevy Bolt and Chevy Bolt EUV due to a safety issue, whereas Tesla (NASDAQ:TSLA) delivered nearly one million electric vehicles in 2021. The veteran automaker now produces additional models, such as the Cadillac Lyriq as well as the GMC Hummer EV, an electric version of the famous Hummer pickup, which should increase GM’s sales figures in 2022. In addition, GM (NYSE:GM) continued production of the Bolt in April and will release the Cadillac Celestiq luxury sedan on July 22.
But Detroit will remain much behind Tesla (NASDAQ:TSLA), the leading company in electric vehicles (EVs), which opened production facilities in Berlin and Austin in 2022. Despite supply-chain issues and the lengthy closure of the Shanghai factory due to covid, Musk expects Tesla (NASDAQ: TSLA) to deliver more than 1.5 million vehicles this year.
Featured Image: Megapixl @Sergiomonti
