{"id":190008,"date":"2025-04-18T02:26:31","date_gmt":"2025-04-18T02:26:31","guid":{"rendered":"https:\/\/peraltafinancing.com\/business\/finance\/general-motors-is-set-to-overtake-tesla-in-one-key-area\/"},"modified":"2025-04-18T02:26:31","modified_gmt":"2025-04-18T02:26:31","slug":"general-motors-is-set-to-overtake-tesla-in-one-key-area","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=190008","title":{"rendered":"General Motors is set to overtake Tesla in one key area"},"content":{"rendered":"


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Electric vehicle sales are growing in the U.S.\u00a0<\/p>\n

Dealers sold 1.3 million EVs in the U.S. in 2024, a 7.3% year-over-year increase making EV sales 8.1% of the market, which was also an increase over 2023, according to a Cox Automotive analysis<\/a>.\u00a0<\/p>\n

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At the start of the year, the firm believed EV sales would likely account for “close to 10%” of automotive sales in 2025. While it’s unclear how President Donald Trump’s recently enacted tariffs will affect this forecast, EVs are undeniably growing in popularity, albeit slowly.\u00a0<\/p>\n

This is undoubtedly good news for Tesla\u00a0 (TSLA<\/a><\/strong>) <\/span>. As the unquestioned EV market leader, Tesla is most poised to benefit from an increase in the pool of potential buyers.\u00a0<\/p>\n

Related: More surprising China news hits Tesla stock<\/a><\/strong><\/p>\n

However, with more potential buyers comes more competition, and suddenly, Tesla is being challenged in areas where it was previously unchallenged.\u00a0<\/p>\n

Tesla\u00a0 (TSLA<\/a><\/strong>) <\/span>\u00a0employs a liquid cooling system for its batteries, which gives them a lower degradation rate than air-cooled battery systems. According to one study, most EV batteries last between 15 and 20 years and have an average degradation rate of 1.8% per year.\u00a0<\/p>\n

While this setup gives Tesla an advantage over a Nissan Leaf, one of its biggest competitors in the U.S. is coming for Tesla’s battery crown.\u00a0<\/p>\n

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GM is pulling out all the stops to make sure its EV business is viable. <\/p>\n

FREDERIC J&period; BROWN&sol;Getty Images<\/a><\/p>\n<\/figcaption><\/figure>\n

General Motors makes a big EV battery play\u00a0<\/h2>\n

Recently, General Motors\u00a0 (GM<\/a><\/strong>) <\/span>\u00a0finished its $2.3 billion Ultium Cells battery factory just outside of Nashville, Tennessee, where up to 1,300 employees could eventually build the next generation of batteries for its EV fleet.\u00a0<\/p>\n

GM and LG Energy Solution, a Korean battery company, co-own this facility and another $2.3 billion one in Lordstown, Ohio.\u00a0<\/p>\n

General Motors, along with Tesla and South Korea’s Hyundai, are the companies most invested in selling EVs to America, according to a recent Bloomberg\u00a0report<\/a>.<\/p>\n

GM has spent $35 billion over the past eight years to disrupt the EV market, and that investment is paying off.\u00a0<\/p>\n

GM now produces more battery cells than Tesla, even though its production facilities aren’t running at full capacity. When Bloomberg visited, the news organization witnessed only 250 workers at the 1,300-person facility.\u00a0<\/p>\n

The Nashville facility cranks out 5,000 finished battery cells per hour and runs 24 hours a day, 7 days a week. GM cut battery costs by $60 per kilowatt-hour last year and is targeting another $30 drop this year by increasing manufacturing yield.\u00a0<\/p>\n

If GM’s plan succeeds, it will reduce the cost of its battery packs to $100 per kilowatt-hour, a 50% reduction since 2023 that would beat even Tesla’s price.\u00a0<\/p>\n

Related: Japanese carmaker takes drastic action amid U.S. trade war<\/a><\/strong><\/p>\n

Tesla could be losing its EV market stranglehold\u00a0<\/h2>\n

Earlier this month,\u00a0Tesla reported first-quarter deliveries of 336,681 units, missing JPMorgan’s trimmed-down forecast by 18,000 vehicles, or 5.2%.<\/p>\n

Its Q1 2025 deliveries were 13% less than the 386,810 vehicles the company sold during the same period last year and 32% lower than the record 495,570 it sold in the preceding quarter.<\/p>\n

Unfortunately for Tesla investors, JPMorgan doesn’t see the first quarter dip as a one-off situation.<\/p>\n

The firm lowered its full-year delivery estimates. JPMorgan expects Tesla to deliver 1,715,000 vehicles this year, down from its previous estimated 1,775,000.\u00a0<\/p>\n

More Automotive news:<\/strong><\/p>\n