Market cap is pretty irrelevant in this. Just look at the recent price fluctuations (around 25%). Tesla are a pretty high risk holding. Even a company like GM that has a pretty poor share price record isn't that risky. Market Cap is also a bit of a mystical thing, especially for companies like Tesla that have a bit of a cult following, it's a suggestion of what it may be worth some time in the future.Martin (deal addict) wrote: ↑Nov 13th, 2018 4:53 pmThat is all true but not really relevant here.
If Tesla as a start up can become worth more than GM by developing BEVs then there is no argument about financial risk to GM of using some of their mighty resources and manufacturing experience to do the same.
I am sure that institutional GM shareholders are not overly pleased with the way GM strategy (if you can call it that) has played out.
I assume you'll never agree that a company like Ford dumping it's ICE lineup and with an EV lineup, while doubling the price of the equivalent vehicle, is a suicide mission for them. That's what it would have to do to "sate" the EV zelots.
Companies like GM ARE using some of their might to do so, the Bolt and Volt are two prime examples. The issue seems to be they aren't doing it fast enought, because so many EV enthusiasts seem to have their head in the clouds, assuming that more people would be happy with swapping out their $30k sedan or CUV for a $50k 200 mile supermini (or a $60k 300 mile sedan).
Tesla are producing a vehicle that costs multiple times the average car though. They're getting away with it by going for the high end, not the mainstream, AND selling largely to early adopters who are happy to spend extra to be in the "best"/newest technology. The main market for the big companies are not those sort of people. Now that begs the question - should BMW/MB/Audi have invested more in earlier. And that question could be a yes, but lets' remember that BMW do have a dedicated BEV in the form of the i3, so they weren't sitting on their laurels, and BMW/MB and Audi will all have a BEV midsize crossover on the market before Tesla (even if the range won't be as long, and the price may be a bit high).