Besides Tesla, Who Else is Playing in Electric Vehicles?

TL;DR

General Motors (GM) partners with Honda to develop self-driving electric vehicles, while Nio, a Chinese EV startup, enters the market with the ES8 SUV.

Transcript

Nick Sciple: Welcome to Industry Focus, the podcast that dives into a different sector of the stock market every day. Today's Thursday, October 11th, and we're discussing electric vehicles. I'm your host, Nick Sciple. Today, I'm joined by Motley Fool senior auto specialist, John Rosevear, via Skype. How are you doing, John? John Rosevear: I'm doing... Read More

Key Insights

• 🤳 GM's partnership with Honda in the self-driving taxi service market shows their commitment to electric and autonomous vehicles as future trends in the automotive industry.
• 🌇 The demand for electric vehicles in Europe is set to rise due to new emissions standards, leading to the introduction of luxury electric SUVs from manufacturers like Jaguar, Audi, and Mercedes-Benz.
• 💪 Nio has the potential to be a strong competitor to Tesla in the Chinese electric vehicle market, with their premium ES8 SUV offering competitive pricing and features.

Questions & Answers

Q: What is GM's partnership with Honda and what are they developing?

GM and Honda are developing a self-driving taxi service that uses electric vehicles. Honda has made an equity investment in Cruise and will contribute $2 billion towards the development of a self-driving vehicle designed to be fully autonomous.

Q: What is GM doing to increase its presence in the electric vehicle market?

GM is expanding its electric vehicle lineup by increasing production of the Chevrolet Bolt and developing a new platform architecture for electric vehicles that will succeed the Bolt. They are also partnering with other companies, like Honda, to expand their reach and gain access to new markets.

Q: What is the status of GM's electric SUV, the Chevrolet Bolt?

The Chevrolet Bolt, an urban taxi-focused electric vehicle, has a range of 238 miles and a starting price of approximately $36,000. Sales of the Bolt have been strong globally, especially in markets like Korea and Europe. However, demand in the United States has been slower, potentially due to supply constraints.

Q: What advantages does Nio have in the EV market?

Nio has started producing and selling its flagship vehicle, the ES8, a premium seven-seat SUV. It is positioned as a more affordable alternative to the Tesla Model X, appealing to the growing market of SUV enthusiasts. Nio is also strategically positioned in China, which has a high demand for electric vehicles.

Summary & Key Takeaways

• GM and Honda have partnered to develop a self-driving taxi service that utilizes electric vehicles, with Honda making a substantial investment in Cruise, a GM subsidiary.

• GM's electric vehicle lineup is expanding with the success of the Chevrolet Bolt, which GM plans to boost production of in the fourth quarter.

• In Europe, the demand for electric vehicles is set to rise due to new emissions standards, resulting in the introduction of luxury electric SUVs from manufacturers like Jaguar and Audi.

• Nio, a Chinese EV startup, has released the ES8, a premium seven-seat SUV, and aims to be a strong competitor to Tesla in the Chinese market.