Did Tesla Kill The Model 3? A Lesson For General Motors (And The Chevy Bolt)

The Model 3 brought Tesla close to bankruptcy but Musk stuck with it. Too bad GM can’t stick with Chevrolet Bolt, its most popular EV.

The Bolt is a no-frills EV that is perfectly suited to penny-pinching EV buyers. GM has struck a balance that, starting at just under $27,000, gets you everything you need in an affordable EV (including Apple CarPlay!). That’s not an easy achievement.

I’m on my second Bolt (more on that below). No it doesn’t come with high-end AI or Sentry Mode or FSD or the latest and greatest battery tech. But who cares? It’s a compact (but not too compact), very agile, quick hatchback with enough range (EPA rated 259 miles) to take long trips sans anxiety.

And if you prefer a more tricked out Bolt EV — which pushes the price to only $32K — you can opt for a host of safety features and things like adaptive cruise control with lane assist (which mimics in some ways GM’s more advanced hand-free Super Cruise technology).

For the slightly bigger Bolt EUV, you can get a ton of features like the aforementioned Super Cruise, though that drives the price up to the $38,000-plus range. But still cheap by EV pricing standards.

One satisfied customer

For a little history: I had a 2018 Bolt that I returned because of the battery recall. I got my money back. No questions asked. GM cooperated fully during the return process. Kudos to GM.

I now drive a newer Bolt with the upgraded battery.

How good is the Bolt? Here’s what Edmunds says:

Why oh why kill a popular EV?

GM of course has its reasons. The company is shifting to its Ultium battery platform and, along with this, moving to large electric SUVs and trucks as well as pricey mid-size SUVs. That includes the GMC Hummer, Silverado Pickup, and Cadillac Lyric.

Bigger is better is the conventional wisdom in the American auto industry. And, granted, GM has been losing money on the Bolt. But so is every other EV manufacturer on the planet losing money with the exception of Tesla.

Did Tesla kill the Model 3?

I would argue that killing* the Bolt is roughly equivalent to (the hypothetical of) Tesla killing the Model 3. Tesla didn’t make money on the Model 3 initially and it almost ruined the company financially. But Tesla stuck with its lowest-priced offering, which eventually became its most popular model (pre Model Y). That is more guts and staying power than GM has.

And Tesla is working toward delivering an even lower cost EV.

“And one of Tesla’s goals is to produce a low-cost EV…a broad push to transform Tesla into a mass-market automaker, which includes introducing a vehicle the company says it hopes will cost half as much to produce as the Model 3.”

—Wall Street Journal, May 11, 2023

GM has already achieved this with the Bolt. Why not keep perfecting the Bolt with the goal of eventually making it popular enough that it’s profitable?

GM has a dubious record of killing off EVs

GM has, to date, killed all of its EVs — many of them groundbreaking: the EV1, the Chevy Spark EV, the Chevy Volt, and now the Bolt EV.

It’s about 12 years since GM entered the mass-market EV space with the Chevy Volt. Maybe it’s time they stick with a nameplate over the long haul. An Ultium-based Bolt would be a good place to start.

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NOTES:

*Yes, I know, GM doesn’t care what I have to say but…

GM has made a series of unfortunate decisions with EVs. The proof is in the pudding. Despite getting into the mass EV market about the same Tesla did (2010), it was trounced by Musk’s EV startup over the following decade.

It would behoove GM to leave the Bolt alone after the blood, sweat, and tears of dealing (commendably) with the battery recall over the last few years. GM, finally, is beginning to hit its stride with the Bolt. It’s obviously one of the most popular EVs in the U.S. and pretty much sold out.

Every EV manufacturer on the planet (including GM) is now cranking out large luxury and high-end EVs. I would argue that the affordable, compact Bolt is a unique product in a crowded EV market. It’s what a significant segment of the EV market is craving.