GM to build profitable EVs by 2021

Last Wednesday, GM CEO Mary Barra told investors her company is developing a new family of electric vehicles that will cost less to build and therefore yield profit. According to Reuters, her plans represent a direct challenge to the Californian EV maker Tesla, which recently reported its biggest-ever quarterly loss. The Model 3 faces production issues and is not leaving the factory in the numbers promised by Musk.

New platform, cheaper and better battery

GM is working on an entirely new EV platform that will serve as basis for multiple vehicle types and sizes, carrying different badges and to be sold in the U.S. and China. It would also provide the underpinnings for a shared autonomous vehicle.

Barra’s target for GM is to sell 1 million electric vehicles by 2026. A key element in reducing the cost of an EV is the integration of cheaper batteries. Compared to the one used in the Chevrolet Bolt (and Opel Ampera-e), the new battery should cost 30 percent less, but still store more energy and charge faster.