This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

After the Volt? The Chevy Spark

Stocks in this article: GM

For those longer road trips, after the first 35 gas-free miles, driving the Volt at a speed of 70 miles per hour, mileage will be closer to 35 MPG than 40 MPG. That's a little bit behind the 47 MPG a Prius will likely yield at that kind of speed. Still, getting 35 MPG or more will handily beat the Porsche Panamera.



GM (GM) made the mistake in launching the Volt by branding it a Chevrolet. It should have been a Cadillac, given that it's a premium construction car competing mostly with cars costing a lot more. Anyway, the Cadillac version of the Volt arrives in early 2014, in conjunction with what is expected to be the updated Chevrolet Volt 2.0.

Some people, however, aren't considering a car at those price levels. Some people would only consider an electric car if it cost under $30,000 before any tax incentives. As a reminder, a plug-in electric car with a battery 16 kWh or larger is eligible for up to $7,500 in a federal tax credit, as well as $1,500 from the state of California, if that's where you live.

And the largest number of electric car drivers live in California. Surprise, surprise.

Therefore, once that sticker price falls below $30,000, the net cost to the consumer starts to look a lot like it's hitting $20,000. That's below the average new car price in the U.S. today.

Chevy's Next Star

The net price of a base Volt is $30,995 today ($39,995 minus $9,000 in tax credits), but what car could shave that by third or even more?

The Chevrolet Spark, due approximately one year from now, that's what!

With the Chevy Spark, GM will try to undercut the Nissan LEAF, the Ford Focus Electric, and the various BMWs that are and will be in the market in the next two years, such as the current BMW ActivE and the upcoming BMW i3. I predict that the Chevy Spark Electric, when it hits the U.S. market by the second quarter of 2013, will cost no more than approximately $29,000 before any applicable tax incentives.

Unlike the Volt, the Chevy Spark will of course not be a zero-compromise performance car, but rather compete with the small all-electric cars with limited range. The EPA-certified ranges of the LEAF, Focus and ActivE, respectively, are 73 miles, 76 and 93. There is no good indication yet as to the range of the Chevy Spark, but it will most likely be a lighter car that has the potential for breaking the 100-mile barrier, perhaps even 110 or 120 -- or 140.

2 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,810.06 +91.06 0.51%
S&P 500 2,063.50 +10.75 0.52%
NASDAQ 4,712.97 +11.1030 0.24%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs