Tomahawk, WI 9/18/2013 (BasicsMedia) – Tesla Motors Inc (NASDAQ:TSLA) has enjoyed its reputation as a market leader in the design, production, and distribution of some of the best electric vehicles the world has ever seen. When it recently announced the launch of its latest product, the Model S electric vehicle, it received wide acclaim and praise from almost all the major stakeholders in this industry. The vehicle has been hailed as the best of the lot and is miles ahead of its nearest competitors. The question is; will the company will be able to handle what is considered to be its biggest challenge thus far?

TSLA Decides to Make EVs for the Mass Market

Up to this point, electric vehicles have not been made for the mass market. However, as the world continues its love affair with everything that is considered to be environmentally friendly, there is a very real possibility that this is about to change, especially as the demand for electric vehicles picks up in the next few years. This could be the reason why TSLA is indicating that it wishes to move into mass production of electric vehicles in a few years time. This news has been countered with the decision by General Motors Company to enter this market as well.

If  General Electric Company (NYSE:GE) successfully enters the market which is currently dominated by TSLA, it could prove to be the biggest challenger yet to Tesla’s domination of this industry. The market is replete with several models of electric vehicles which are priced at around $30,000. When G finally launches its own model, it will also be priced at $30,000. However, one thing will set it apart from others, and that is its ability to travel for up to 200 miles purely on a single charge. It will be in direct competition with TSLA’s generation III which is the only one with such ability.

GM Has Studied TSLA’s Methods and Strategies

GM has not come up with such a vehicle out of the blues. It has done so after spending a lot of time studying the methods employed by TSLA, which has thus far been setting the standards within the industry. Therefore, it is accurate to say that GM probably knows TSLA’s methods and strategies inside out. This lends further credence to the belief that GM is about to emerge as a major competitor to TSLA in terms of producing electric vehicles which perform to the optimum on many fronts. GM’s car will enter the market at the same time as TSLA’s.

However, the two companies will also have one major challenge to contend with. None of them currently has a battery which is able to make their vehicles travel such long distances on a single charge. Tesla’s electric vehicles have thus far been geared for the luxury market, but things will change should it succeed in producing the model for the mass market. The winning manufacturer is one with the ability to make batteries which cost lower than what the industry currently has to offer. I think the challenge from GM will help TSLA in the long run to become more innovative.

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