This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Chevy Volt 2.0 vs. the Tesla Gen 3 Launch Strategy

Stocks in this article: GM TSLA GOOG AAPL NSANY

A more likely theory is that this was GM's first mass-produced electric car, and it would take almost no sales from other GM products. GM rightly assumed that 95% of Volt buyers were coming from a non-GM car. Therefore, almost nobody would postpone the purchase of an existing GM product in order to wait for the Volt.

Yet, at the same time, the Volt was so "out there" that GM somehow didn't think the competition would be awakened to go down a similar road. The market for plug-in electrics was effectively zero until the Tesla (TSLA) Roadster in 2008 and the Volt and Nissan Leaf in December 2010. Sounds far-fetched today, but it was what our world looked like 2007-09.

The Volt has now been in production for over three years. Typically, the work on a new car is started at least a few months before the old one enters production. In the case of the Chevy Volt, that would have meant 2010.

However, since the Volt was such a dramatically all-new car, and the development was rushed to an unprecedented degree, I think we can assume that the work on the Volt 2.0 didn't start until 2011. Using conventional metrics, we can assume that the Volt 2.0 won't enter into production until some time around the middle of 2015, presumably as a 2016 model.

So what's different with the Volt development this time?

For starters, we don't know anything about it. Nothing. Unlike the last time around, GM has not shown a prototype, not a "final production design," not talked about it at all except in generalities so vague so as to be meaningless: "A future Volt will be better in every dimension we can" is how you'd summarize anything reliable GM has said.

The most specific information came from former CEO Dan Akerson, and those comments were so all over the place one that wonders whether they were deliberately misleading, mysteriously uninformed (by the CEO nonetheless) or whether he was outright drunk when he made them. I guess the only thing that was 100% believable was that it was going to be cost-reduced so GM could finally start to make money on the car. In this case, cost-reduced doesn't necessarily mean "price-reduced."

So why is GM so secretive this time, when it wasn't last time around, 2007-2010? The answer is twofold:

1. There is a Volt 1.0 GM needs to sell. If you haven't been paying attention, the Volt 1.0 hasn't exactly been flying out of dealerships. GM has been selling 23,000 per year in the U.S., and not that many more internationally. If GM told us about the Volt 2.0, sales of the Volt 1.0 would likely collapse.

2 of 3

Select the service that is right for you!

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 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • 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