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Will GM take on Tesla Motors with 200-mile, $30000 electric car?
So far, the Tesla Model S is alone among plug-in electric cars in providing 200 miles or more of electric range.
But as Tesla Motors [NSDQ:TSLA] prepares to roll out its more affordable Model E late in 2016, it may face serious competition from General Motors.
GM is developing a Tesla-rivaling car that can go 200 miles on a charge and would cost $30,000, The Wall Street Journal reports.
But while the General has the technology to build this new electric car, it won't go on sale particularly soon--due to high battery costs, said Douglas Parks, GM's vice president of global product programs.
Treasury Reduces Stake in GM to 7.3%
The U.S. Treasury has sold another block of shares in General Motors Co, reducing its stake to 7.3 percent as it moves toward exiting its holdings in the automaker by the end of March.
The Treasury sold more than 110 million shares between May 6 and Sept. 13, raising more than $3.82 billion, according to documents posted online on Tuesday. The Treasury confirmed its stake in the No. 1 U.S. automaker now stands at 101 million shares.
The U.S. government, which originally took a 60.8 percent stake in GM as part of its $49.5 billion bailout of the company in 2009, said it will have recovered about $39.2 billion of its investment after the sales proceeds come in. When it outlined its exit plan in December 2012, Treasury said it would sell all its GM shares in 12 to 15 months.
GM shares closed Tuesday at $36.71 on the New York Stock Exchange, so Treasury's remaining stake is worth about $3.7 billion. At that price, Treasury would end up losing about $6.6 billion on the bailout of GM.
Treasury officials have said the government will lose $15 billion on the $85 billion auto industry bailout that included Chrysler, but the intention was to save jobs not make a profit.
The U.S. taxpayer bailout led some critics to call the company "Government Motors" and executives said the stigma hurt sales some. GM Chief Executive Dan Akerson has said the exit of Treasury would bring closure to the bailout and remove the perception of government ownership among customers.
Analysts have speculated that once Treasury has fully exited its GM stake, the automaker may consider reinstating a dividend on common shares, something it has not paid since May 2008. GM executives have said they will focus on reinvesting in company operations.
The Canadian and Ontario governments on Sept. 10 said they would sell nearly a quarter of their common shares in GM as part of a longer term plan to exit stock acquired in the bailout. After raising $1.1 billion in that sale, the governments still hold more than 110 million shares.
Read more: http://www.foxbusiness.com/government/2013/09/18/treasury-reduces-stake-in-gm-to-73/#ixzz2fGLrESlj
General Motors (GM) is working on an electric car that has a range of 200 miles and costs roughly $30,000, challenging Tesla (TSLA) and its planned mass-market vehicle.
Doug Parks, GM’s vice president of global product development, revealed the automaker’s plans for a new electric car during an appearance at a battery laboratory and test facility in Warren, Mich., according to several news reports.
A GM spokesperson didn’t respond to a request for further comment.
Parks didn’t specify when the car might become available, explaining that the technology is available now but the cost of the batteries is still too high.
Sales of electric and plug-in hybrid vehicles make up less than half a percentage point of the total market, despite price cuts and government tax incentives for owners.
Tesla has emerged as a notable player in electric vehicles, grabbing the attention of investors and getting positive reviews of its Model S, which retails for $70,000 or more. The California startup’s stock has soared roughly 391% so far this year.
But GM and other major automakers aren’t ceding ground to Tesla. Germany’s Volkswagen, Europe’s largest car maker, recently said it plans to surpass Nissan to become the largest global seller of electric vehicles by 2018.
The car in development at GM, priced below its $35,000 Chevrolet Volt, would be the only direct competitor to Tesla, the lone manufacturer offering long-range electric vehicles. Most electric vehicles currently on the market have ranges of 100 miles or less.
GM has made vehicles that don’t go as far on a single charge to make the cars more affordable, Parks said.
Tesla CEO Elon Musk has said the company plans to launch a mass-market vehicle that costs around $35,000 and can travel 200 miles between charges. He has suggested the car go on sale as early as the end of 2016.
“Their pricing is up there for a real unique customer,” Parks said of Tesla, according to the Associated Press. “The real trick will be who can do a 200-mile car for more of the price range I'm talking about. We're all in races to do that.”
GM shares were up 1.6% at $36.81 in mid-morning trading Tuesday. Tesla was trading 87 cents lower at $165.71.
Read more: http://www.foxbusiness.com/industries/2013/09/17/gm-eyeing-long-range-electric-car-to-tackle-tesla/#ixzz2fE3DUPyg
Going to gap up again tomorrow. GM has a lot of room to grow.
This could run like Tesla when it start producing the 30k full electric cars. I got Tesla when it was $40 a share and now it's above $150 a share. If this move up above $100 a share than we would have almost triple our investment at this current price level. Lets do it GM!
GM plans $30K electric car to challenge Tesla Motors
Lance Murray
Dallas Business Journal
Date: Monday, September 16, 2013, 11:00pm CDT
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General Motors Co. plans to build an electric car to rival Tesla Motors Inc.'s hold on the luxy electric-car market, the Wall Street Journal reported.
The Journal said that effort was disclosed Monday by Doug Parks, GM's vice president of global product programs at the company's battery laboratory and test facility in Warren, Mich.
The car will sell for roughly $30,000 and will be able to go 200 miles on a charge, the Journal said. General Motors (NYSE: GM) has a large assembly plant in Arlington where it makes full SUVs.
The Journal said that Tesla is challenging the major automakers with its $70,000 Model S that can go roughly 200 miles on a charge. Tesla recently announced a free super charger station for its Model S cars in Bellmead, on Interstate 35 between Dallas-Fort Worth and Waco.
The new GM car would be a true electric car, as opposed to its Volt model, which has a gasoline engine that recharges its batteries.
Not all Tesla models will be able to recharge at the Bellmead station, though. An Arlington man told DBJ Staff Writer Nicholas Sakelaris that his $130,000 Tesla roadster can't use the station because it charges on an AC system.
New Chevrolet Silverado impresses critics
4 HOURS AGOGM, FIATY.PK
General Motors (GM) sees its Chevrolet Silverado edge out the Chrysler (FIATY.PK) Ram 1500 in a road test conducted by Consumer Reports.
The distinction could be an important selling point after the model underwent its first major design change since 2006.
"The reality is that you can't go wrong with either one," says a rep from CR.
September 16, 2013 5:05 PM
GM Developing Car to Rival Tesla
Cost of Advanced Battery-Technology Remains Hurdle to Building Longer-Range Vehicles
GM expects to challenge Tesla on battery range. An employee at its Warren, Mich., battery laboratory Photo: GM/European Pressphoto Agency
By MIKE RAMSEY
General Motors Co. is developing an electric car that can go 200 miles on a charge for around $30,000, officials at the largest U.S. auto maker said, offering a challenge to luxury electric-car startup Tesla Motors Inc.
Doug Parks, GM's vice president of global product programs, disclosed the effort on Monday at GM's battery laboratory and test facility in Warren, Mich., but didn't say when the car would be available. He said while the technology is available now, the cost of the batteries remains too high to be able to pull off the feat today.
GM's move to raise the profile of its battery research efforts comes as Tesla is challenging the established auto industry's claim to technology leadership with its $70,000 and up Model S. Mr. Parks' comments came just a few days after Germany's Volkswagen AG said it intended to become the largest seller of electric vehicles by 2018.
Analysts and industry executives say Tesla, GM, VW and the current global electric vehicle sales leader, Nissan Motor Co., all face the same problem: current electric vehicle batteries are too expensive, and deliver too little usable driving range compared with vehicles powered by internal combustion engines.
The number of electric and plug-in hybrid vehicles for sale in the U.S. has more than quadrupled to 15 vehicles since 2010 as auto makers roll out new models to comply with government mandates. But sales of electric and plug-in hybrid vehicles account for less than half of one percent of the overall market, despite price cuts, discounted leases and government tax incentives that can add up to as much as $12,500 a vehicle depending on the state.
GM has sold nearly 15,000 of its battery-powered Chevrolet Volt cars this year through August, aided by incentives and discounts.
Nissan's approach is to argue that extending the range of electric vehicles to 200 miles isn't worth it because most people don't drive farther in a day than the Nissan Leaf's 75 miles of all-electric range. The Leaf costs $28,800 in the U.S. before federal tax credits.
Tesla is the lone auto maker to offer long-range electric vehicles with its Model S—and Tesla still hasn't shown it can steadily make money selling them.
Tesla Chief Executive Elon Musk said recently that "it didn't require a miracle" to sell a 200-mile range electric car for around $35,000 in the next three or four years.
Every other EV currently on the market gets about 100 miles of range or less. Starting prices for them currently range between $25,000 for the Smart Fortwo EV and $50,000 for the RAV4 EV. BMW's i3, launching later this year, is expected to start at $41,350.
Kevin Gallagher, a chemist and researcher at the Department of Energy's Argonne National Laboratory, said auto makers are spending about $500 a kilowatt hour on battery packs. That means the 24 kwh pack on the Nissan Leaf would cost around $12,000. Last year, Ford CEO Alan Mulally said the battery on the Focus EV with 23 kwh of energy costs between $13,000 and $15,000.
Tesla Chief Technical Officer JB Straubel says the company's battery costs are half or even a quarter of the price of the industry average, partly because of the company's strategy to use thousands of commodity battery casings rather than the specialized batteries that GM and Nissan use.
"The battery prices in the Model S are substantially lower than what everyone expects today," he said in an interview. Mr. Straubel expects the energy density in Tesla's batteries will increase by more than 20% by the time Tesla's mass-market car comes out in about four years. More energy in batteries should equate to longer driving range for roughly the same price.
Tesla doesn't disclose what its batteries cost. Toyota Motor Corp.'s electric RAV4 sport-utility vehicle is outfitted by Tesla with batteries and a Tesla motor. It has a 41.8 kwh battery pack and has 103 miles of range. The starting price of $49,800 is about $26,500 more than the internal combustion engine RAV4 that starts at $23,300.
Write to Mike Ramsey at michael.ramsey@wsj.com
General Motors has big goals in EV market
07:24 AM ET · TSLA
General Motors will challenge Tesla Motors (TSLA) with a new electric vehicle model boasting a powerful battery that extends driving range to close to 200 miles.
The automaker faces the common challenge in the EV sector of how to mass-produce battery packs at an affordable cost.
The targeted sticker price on the GM model will be around $30K, although the concept is still deep in development.
Nice green day today. Can't wait for Monday when we see more green days.
I've been accumulating shares here and there and waiting for the run from profitable earnings. It seems like its a for sure win when earnings show a profit.
Nope. Just picked up some.
I think we will move back up hard like the last few times that we hit $1. i think this will probably go back up during the power hour or sooner.
Facebook price target hiked at JPMorgan, CLSA
07:32 AM ET · FB
Expecting strong advertising traction to build into the end of the year, JPMorgan reiterates its Buy rating on Facebook (FB) and ups the price target to $53 from $44. The team is raising its mobile and desktop estimates, and projects mobile will surpass 50% of total ad revenues in Q4.
CLSA one-ups JPMorgan, hiking its price target to a Street-high $60. Traffic is still under-monetized with several "goldmine" opportunities yet to be unlocked - video ads, games, search, ad network, and Instagram, to name a few. The valuation could reach $97 over time, says CLSA.
Chatting at TechCrunch Disrupt yesterday, Facebook CEO Zuckerberg said the company's engagement on mobile is better than that on PCs.
Shares +1.2% premarket to $45.57.
The 50MA is at $9.54. Time to bounce!
It's funny how our country is in debt and we have the money to go to war.
I think FB is a very good company but I rather take my profit now and wait to enter at a lower price with more shares. I believe this will be at $50 range someday but not now. Just going with the market.
Taking my profit while I'm still green. Be back in if it goes lower.
Berkowitz planning new big bets as Fairholme reopens
11:26 AM ET · FNMA.OB
Last week's reopening of the Fairholme Fund just months after it was closed to new investors suggests Bruce Berkowitz has some big investment ideas today that he didn't have earlier this year. At the top of the possibilities list would be a doubling-down of his investments in Fannie Mae (FNMA.OB -3.5%) and Freddie Mac (FMCC.OB -3.4%). The preferred stock of the two make up more than 5% of Fairholme's current holdings.
Fairholme is among those suing to challenge Treasury's taking all of the GSE's profits.
Berkowitz planning new big bets as Fairholme reopens
11:26 AM ET · FNMA.OB
Last week's reopening of the Fairholme Fund just months after it was closed to new investors suggests Bruce Berkowitz has some big investment ideas today that he didn't have earlier this year. At the top of the possibilities list would be a doubling-down of his investments in Fannie Mae (FNMA.OB -3.5%) and Freddie Mac (FMCC.OB -3.4%). The preferred stock of the two make up more than 5% of Fairholme's current holdings.
Fairholme is among those suing to challenge Treasury's taking all of the GSE's profits.
We might be testing $13 again soon
$10 is around the corner.
Is this the beginning of the run after the earnings? Green days ahead!
$9.20 is the 50MA. It's been above that line for the longest time. We are getting close to the 50MA line.
I think it's time for a bounce. We will probably close green today. :)
Freddie Mac spends fortune to prop up market share
04:14 PM ET · FMCC.OB
Never underestimate the power of a large bureaucracy trying to sustain itself. Freddie Mac (FMCC.OB) is spending hundreds of millions per year to hold onto market share instead of sending the money to the Treasury, reports the FT.
The money is going to lenders as compensation payments to make up for the fact that Freddie's MBS trade at a lower price than those of Fannie Mae (FNMA.OB). Deutshce Bank estimates it's totaled more than $2B since 2008 and Treasury is demanding changes which would unify the securities of the two GSEs. Fund managers - often limited in the amount of money they can allocated to a single security - have longed balked at the idea.
Fannie Mae sends another $10.2B back to Treasury
09:32 AM ET · FNMA.OB
Net income of $10.1B is reduced by $10.2B payment to Treasury, leading to negative $0.03 per share figure in earnings report. After latest payment, Fannie (FNMA.OB) will have sent $105B back to taxpayers against $117.1B received.
Freddie Mac (FMCC.OB) - which yesterday reported a $5B profit - has sent back $41B after drawing $72B.
Fannie expects to be profitable "for the foreseeable future" and expects substantial income tax payments to accompany dividend payments to Treasury going forward.
Run baby run!
Fannie Mae sends another $10.2B back to Treasury
09:32 AM ET · FNMA.OB
Net income of $10.1B is reduced by $10.2B payment to Treasury, leading to negative $0.03 per share figure in earnings report. After latest payment, Fannie (FNMA.OB) will have sent $105B back to taxpayers against $117.1B received.
Freddie Mac (FMCC.OB) - which yesterday reported a $5B profit - has sent back $41B after drawing $72B.
Fannie expects to be profitable "for the foreseeable future" and expects substantial income tax payments to accompany dividend payments to Treasury going forward.
Run baby run!
Loving it!
Freddie Mac Net Income of $5.0B
12:05 PM ET · FMCC.OB
Freddie Mac (FMCC.OB): Q2 Net Income of $5.0B vs. $4.6B in 1Q13. (PR)
My stop loss order just got filled. Waiting to see how the EV credit will effect TSLA before coming back in. GLTA
What time will earning come out?
Obama could be saying that he want to wind down F&F debt to the government and make them stronger. Privatizing them once the debt is wind down. F&F is now profiting.
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HSBC faces $1.6B payout over mortgage bonds
03:23 AM ET · HBC
HSBC (HBC) faces having to pay $1.6B in a lawsuit from the Federal Housing Finance Agency over soured mortgage bonds that the bank sold to Fannie Mae (FNMA.OB) and Freddie Mac (FMCC.OB). The bank made the disclosure yesterday.
The figure is well above the $900M that analysts at Credit Suisse had estimated.
In total the FHFA has sued 18 banks over mortgage bonds; should HSBC's calculations for its liabilities be applied to some of the defendants with the largest exposure, including Bank of America (BAC), JPMorgan (JPM) and RBS (RBS), they would have to pay over $7B each. Should these banks make payments in proportion with a recent UBS deal, the bill would above $4B.
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HSBC faces $1.6B payout over mortgage bonds
03:23 AM ET · HBC
HSBC (HBC) faces having to pay $1.6B in a lawsuit from the Federal Housing Finance Agency over soured mortgage bonds that the bank sold to Fannie Mae (FNMA.OB) and Freddie Mac (FMCC.OB). The bank made the disclosure yesterday.
The figure is well above the $900M that analysts at Credit Suisse had estimated.
In total the FHFA has sued 18 banks over mortgage bonds; should HSBC's calculations for its liabilities be applied to some of the defendants with the largest exposure, including Bank of America (BAC), JPMorgan (JPM) and RBS (RBS), they would have to pay over $7B each. Should these banks make payments in proportion with a recent UBS deal, the bill would above $4B.
Volume is growing nicely today.