Tesla Inc (TSLA) Model 3 Delays Spurring Brisk Chevy Bolt Sales

Tesla Inc (NASDAQ:TSLA) has created a vehicle in the Model 3 sedan that’s seeing no shortage of demand, but the fact that it simply can’t produce the car in any sort of mass quantities is giving its EV competitors a big advantage.

As Reuters reports, would-be Tesla owners have taken to online forums to express their displeasure about repeated production delays, and GM dealers are reaping the benefits:

Last week Tesla told some holders of Model 3 reservations that they would not get their cars until 2019, eliciting howls of complaint on Tesla online fan forums. Tesla declined to comment.
GM dealers in California, the top U.S. market for electric vehicles, say brisk demand for Bolts is driven in part by frustrated Tesla buyers who are afraid they will lose a $7,500 electric vehicle tax credit if they wait. The tax credit drops in value and eventually disappears once Tesla sells 200,000 electric vehicles in the United States, which Edmunds analyst Jeremy Acevedo expects Tesla to hit by the fall.

Customers reportedly are disenfranchised with the long wait time to get a Model 3, and they want an affordable electric vehicle now. GM has stepped up to fill that gap with the suddenly popular Chevy Bolt, an all-electric subcompact. While not as roomy as the Model 3, which is a mid-sized sedan, the vehicle offers just about everything else a modern EV buyer would want.

Pricing of the cars is nearly identical, as is their battery range. The one key difference is, you can walk into a dealership and drive home in a brand new Bolt today. If you want a Model 3, you’ll need to wait at least a year to get your car — and possibly much longer.

Tesla Inc shares closed at $335.49 on Friday, up $1.43 (+0.43%). Year-to-date, TSLA has gained 7.75%, versus a 2.34% rise in the benchmark S&P 500 index during the same period.

TSLA currently has a StockNews.com POWR Rating of C (Neutral), and is ranked #9 of 24 stocks in the Auto & Vehicle Manufacturers category.