At a glance, there’s plenty to love about the stylish Cadillac ELR, GM’s (NYSE:GM) entry into the luxury plug-in market. However, a closer look at the sticker price and inside the car may reveal less than a consumer would expect for the MSRP of $75,000. In fact, it risks drowning in negatives before its scheduled release in January 2014, especially when compared to a Tesla (NASDAQ:TSLA).

Limited Electric Range

The most disappointing feature of the Cadillac ELR may be its limited range. GM estimates the car will be able to cover 30 to 35 miles on a full charge. At that point, the gas engine will kick in, giving a drivers more than 250 miles of driving before needing to fill up the gas tank. A Tesla Model S covers an EPA-estimated 208 miles on a full charge in the base 60 kWh model ($74,070) and 265 miles in the 85 kWh version ($81,070).

GM executives have mentioned the company is working on an electric vehicle with greater range, but the Cadillac ELR is limited in a glaring way. Its price point may take away another potential advantage it had over cars from Tesla.

Excessively High Price

Why does the Cadillac ELR cost so much? Some analysts believe the pricing is between the two versions of the Model S to establish Cadillac in the luxury electric vehicle category. However, the specs don’t immediately justify the price tag, especially when looking at the powertrain.

The ELR can generate 207 horsepower on 295 pound-feet of torque. GM has been criticized on several occasions for re-branding the Chevy Volt powertrain in a luxury package, and that charge seems justified by the fact the ELR only generates an extra 58 horses compared to the Volt. Customers shopping for a luxury Cadillac may have a hard time opting for the ELR when the gorgeous CTS-V packs a 6.2-liter V8 capable of generating 556 horsepower. That sounds more like a Cadillac, and it’s even more affordable at $64,515.

A Bridge Car

Most of all, the 2014 Cadillac ELR may suffer from the idea that it is a “bridge” car, the automobile that allows GM to enter the luxury EV game without delivering the thrills of the competition. There is plenty to love about the car’s innovative style, yet the consumer may wonder if the specs won’t soon be obviated by GM itself.

With respect to range and power, it can seem as if GM rushed a product to the market that was more show pony than workhorse. Criticisms of the Tesla Model S have often revolved around the car’s “limited” range of 208 miles (60 kWh) or 265 miles (85 kWh). GM has barely met that standard, and has done so with the overhwleming majority of the drive in gas-powered mode.

Though it is a plug-in electric, GM may have missed the mark by supplying the Cadillac ELR with such a limited scope of performance in electric mode. Customers wowed by the Tesla can hang a hat on the car’s performance. The base Model S generates 302 hp on 317 lb-ft torque; the 85 kWh model generates 362 hp on 325 lb-ft torque.

Those specs are impressive, and the reason reviewers were so enthusiastic about the much-lauded Model S. By contrast, the attention given to Cadillac’s ELR is mainly focused on the car’s lofty sticker price. GM envisioned the ELR as having limited-edition appeal, but it may need to mount a convincing marketing campaign to justify the investment.

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Tesla’s (NASDAQ:TSLA) controversial Model S fire may have occurred more than three weeks ago, but now the sedan’s residual flames are causing the automaker’s shares to fall again, as the National Highway Traffic Safety Administration reported that it is in the process of investigating the fire.

Tesla shares were down 0.61 percent to $171.54 by the close in New York on Tuesday. The decline was spurred by a statement made by the NHTSA earlier that day, in which the agency explained that it is currently studying Tesla’s October 1 fire and will soon decide whether it wants to open a formal investigation.

According to Bloomberg, the NHTSA probe comes nearly 21 days after the initial electric car fire because most of the agency’s employees were on furlough during the partial U.S. government shutdown, keeping them from investigating earlier. Now, investor concern is reignited over what the officials might find.

Video of the Model S submerged in flames already whipped through the Internet earlier this month, after the sedan caught fire on Washington State Route in Kent, Washington, but CEO Elon Musk tried to curb the initial Tesla stock dive by meticulously explaining the unusual series of events that led to the blaze. Musk’s serious and poignant blog post published on the company website helped mitigate investor concern that the flames would cause consumer anxiety over the true safety of lithium ion battery-operated vehicles, but that apprehension was reportedly renewed Tuesday.

According to Bloomberg, a NHTSA administrator maintained early in the day that the agency is simply “gathering data” on the Tesla accident and may not even open an investigation. However, investors still remember the regulators’ probe of a fire in General Motors’s (NYSE:GM) Chevrolet Volt, which led to congressional hearings, and they’re already proceeding with caution.

It is not yet clear when the NHTSA will release its ruling on the Tesla fire, but considering that the probe is already three weeks after the fact, it’s likely to be soon.

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As 2013 draws to a close, it’s time to take advantage of model year-end deals from automakers. U.S. News & World Report recently compiled a list of some of the attractive deals on the table for auto buyers in November. Here are the six best-value cars now on the market, with the MSRP listed after the model year and make.

1. 2013 Mazda2 ($14,720)

It’s hard to complain about the value of this subcompact from Mazda (MZDAF.PK) when the MSRP is below $15,000. However, the automaker sweetened the terms for interested parties, posting financing offers at zero percent for five years that includes $1,000 in cash from the automaker. U.S. News notes that buyers who land outside financing packages can get up to $2,000 in cash.

2. 2013 Chevy Malibu ($21,995)

U.S. shoppers saw excellent value from General Motors (NYSE:GM) in October, when they went after the Chevy Malibu in droves. U.S. News notes the Malibu is just as attractive in November at zero percent financing for a period of five years plus $2,500 in cash from General Motors. That type of value might give the automaker a repeat star in the Malibu this month.

3. 2013 Hyundai Elantra ($16,965)

The deals on the 2013 Hyundai (HYMLF.PK) Elantra are enticing many buyers this fall. Hyundai is offering no-interest loans for five years and 0.9 percent on six-year terms. Sales jumped 25 percent in October over 2012 on similar deals from the automaker.

4. 2013 Dodge Charger ($26,295)

Chrysler Group (FIATY.PK) has a winner in the 2013 Dodge Charger, which doesn’t have a different look from its 2014 counterpart. Value seekers can land interest-free financing for six years or a cash allowance of $3,000 when choosing the Charger, one of the best-selling large cars in America.

5. 2013 Chevy Volt ($39,995)

With $7,000 in cash back and a potential $7,500 in tax credits for purchasing an electric vehicle, the net starting price of the 2013 Chevy Volt will be just over $25,000. That figure is more than manageable to buyers who have had electric vehicle sticker shock in the past.

6. 2013 Nissan Murano ($28,440)

The one crossover making the list was the Murano by Nissan (NSANY.PK), a sweet deal if buyers take up the offer in November. It amounts to six years with zero percent financing and $500 in cash from Nissan. U.S. News says buyers finding alternative financing could score $2,500 cash back or $1,ooo in bonus cash.

Automakers are offering excellent deals in order to move stock of their 2013 models, so bargain hunters may see some of the best deals of the year in November.

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Though some haven’t gotten used to the ring of 2014 cars, the next offerings are not that far away. The 2014 line features recharged versions of old standards, hybrid performance in luxury sedans, and (at least in one case) a scorching vehicle that could run buyers  seven figures before taking a spin. Here are the eight cars coming to thrill you in 2014.

8. 2015 Audi A3 E-Tron Plug-In Hybrid (mid-2014)

Audi has gone on the record saying it is proud to have produced a plug-in hybrid that doesn’t look like one. That gesture will appeal to many drivers, and indeed it’s difficult to tell the difference at a glance, especially from this early picture of the concept car. Slated to arrive sometime in the middle of 2014, the A3 E-Tron Plug-in Hybrid will get around 30 miles on a full charge (over 500 miles in total range). The car has some muscle, too, generating 204 hp on 258 lb-ft of torque. Pricing hasn’t been announced yet.

7. 2014 Porsche 918 Spyder Hybrid (Early 2014)

This car will cause a sensation wherever it’s driven, though few will be aware of its hybrid capabilities unless drivers sneak past using the electric motor. On that count, the 918 Spyder, a million-dollar hybrid, can go around 18 miles on a charge before switching over to the gasoline engine. Of course, to get up to its top speeds of over 211 mph, the Spyder would require help from the gasoline engine to generate a mind-blowing 887 hp. It goes 0-60 in 2.8 seconds, but it starts at $970,000, if you can score a limited-edition model.

6. Volkswagen E-Golf (mid-2014)

Volkswagen isn’t sitting tight, and is getting strong in the electric game with its E-Golf, available as early as spring of 2014. The E-Golf will be able to travel over 90 miles on a full charge, zoom close to 90 mph on the highway, and pack a motor operating with 199 lb-ft of torque. The variation on the classic Gold will be a five-door hatchback utilizing a 26.5 kWh battery. Though pricing is not available, it is expected to be in the low-$30K range.

Picture: S Class Rendering

5. Mercedes Benz  S500 Plug-In Hybrid (Fall 2014)

The 2014 Mercedes Benz S Class is about to be released this fall, but many are waiting on the plug-in hybrid to make the biggest splash on the market. When Mercedes has a hybrid in showrooms, the segment has officially arrived in the U.S. luxury market. Early reports suggest the approach to the hybrid will be Porsche-like, with the S500 Plug-In Hybrid able to go around 18 miles on a charge. Pricing on the S Class starts around six figures. Potential for eMPG is expected to be above 60.

4. 2015 Ford Mustang (Summer 2014)

While General Motors (NYSE:GM) is making waves with its highly anticipated Chevy Corvette Stingray, Ford (NYSE:F) is hoping to generate comparable buzz with its 2015 Mustang, the next generation of its storied muscle car. Expect a 2.3 L, 16-valve turbo engine with manual and auto transmission, with Ford opting for a split-and-jointed drive axle for the first time ever. The Mustang will celebrate its 50th birthday in 2014, so expect Ford to come out with the most fearsome version of its classic ride.

3. Volvo V60 Sports Wagon (January 2014)

The V60 Sports Wagon from Volvo has high expectations after finding success in Europe. Safety is always the hallmark of a Volvo, so the company is increasing its commitment, giving drivers the option for automatic stopping at up to 31 mph when danger presents itself. It’s also a more stylish Volvo wagon than has been seen in the company’s 60 years working on this style of automobile. It’s still unclear whether Volvo will offer a diesel engine stateside (as with its Euro counterpart), but most guesses suggest it won’t.

2. Cadillac ELR (January 2014)

Would a Cadillac driver ever want to part with the cozy growl of the luxury ride’s engine? GM is betting its loyal following will, and the Cadillac ELR hybrid is already one of the most hotly anticipated rides of next year. It will pack a 1.4 L, 4-cylinder engine that works with 273 lb-ft of torque. The ELR will be no slouch in its electric-driving range, either. Utilizing the Chevy Volt powertrain, this car will be able to cover 35 miles on a charge before switching to gasoline. It’s not your father’s Caddy.

1. Tesla Model X (early 2014)

Perhaps the most anticipated of all the 2014 releases is the next model from Tesla (NASDAQ:TSLA). The Model X is touted as a cross between a stylish SUV and a useful minivan. The now-standard Tesla specs — falcon wings, luxury interior — are in place, yet the Model X should blow out competition by going 0-60 in under 5 seconds. It’s a bold statement from the industry’s most innovative company, and should be making headlines within the year. Pricing is in line with the Model S, starting around $70,000 before tax credit.

The coming year will be a showcase for some of the world’s oldest automakers. The Detroit revival is nearly complete, so it only makes sense that a challenge from European luxury car makers would follow.

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As soon as GM (NYSE:GM) released pricing info for its $75,995 Cadillac ELR, interested parties everywhere began clicking calculator apps. Cadillac’s first plug-in electric vehicle shares its powertrain with the ho-hum Chevy Volt but is priced in line with a Tesla (NASDAQ:TSLA) Model S. To justify that premium sticker, GM has upped the performance and luxury appointments of the ELR to land an auto consumer who’s likely never bought a Cadillac before.

According to The Detroit News, GM has looked to tech-centric populations in L.A. and California’s Bay Area as well as New York City in its ELR marketing push. Of course, buyers will want the option to switch over to gas and thus the ability to fill up at a gasoline station in minutes rather than charge up batteries as a driver would in a Tesla or new BMW (BMAXY.PK) electric i3.

Yet GM has to justify the use of the Chevy Volt powertrain to buyers the company expects will pay more than $40,000 extra to ride in a Cadillac electric car. Both vehicles get about 38 miles in all-electric mode before switching to a gas engine that has a range of over 300 miles. Part of the attraction will be the interior, which features huge upgrades over the Chevy Volt. A quick glance at the ELR demonstrates other differences when compared to the Volt.

Chevy Volt

While the Volt looks like one of the more mundane Chevy offerings, the Cadillac ELR is a stylish ride that can stand next to star vehicles in the luxury brand’s product lineup. A Cars.com reviewer noted better handling in the ELR compared to the Volt while pointing out the Cadillac’s much fancier interior. For GM, the idea is not to conquer the segment or best the Tesla Model S performance (it doesn’t) but to enter the game with an electric offering that turns heads on the street.

If its eco-friendly buyers know they’re paying more than they have to for a car, it’s because they have the disposable income GM targets for ELR consumers. According to The Detroit News, that buyer will earn around $150,000 and be adding the ELR as a second car, possibly as a status symbol. Since GM is expecting relatively low sales for the ELR, it appears the car is a bridge vehicle, with more ambitious electric vehicles planned for down the road.

Until then, the new Cadillac electric vehicle will be the go-to option for buyers who are skeptical of Tesla and want a more stately ride than the funky BMW i3. It’s unclear how many of these consumers exist.

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With hands-free controls, rear-view cameras, and electric vehicles highlighting tech developments in the auto industry, it’s become more of a challenge to get consumers excited about next-generation technology. These seven cars fit the bill if you are looking for otherworldly safety, performance, or efficiency.

1. Volvo V60

Europe already has the V60 by Volvo on its hands, but the U.S. release will bring unprecedented safety features and an increase in style from the venerable family-car maker. The safety technology will be able to stop drivers automatically when danger appears. While that feature may not be exciting in itself, the ability to hit the brakes at 31 mph gives the V60 an edge worthy of a Volvo. This car will hit the U.S. market early next year.

2. Ford Mustang with Manual Transmission Help

If you want the performance of a manual-transmission Mustang but aren’t entirely confident about shifting, there’s help on the way. Ford (NYSE:F) engineers acknowledge that not everyone is ready to shift when the RPMs suggest it’s time. To that end, one ambitious engineer has designed a knob that will vibrate in the driver’s hand when it’s time to shift, according to Engadget. Using Xbox control technology and a display on the dashboard, it will make it easy to get used to driving with performance and fuel economy in mind.

3. Mercedes S Class and Fuel Economy

Would a Mercedes (DDAIF.OTC) driver ever be concerned with fuel economy? The luxury car maker is embracing the future with a plug-in hybrid for its pricey S Class, coming out early next year. Not only will this stylish ride come designed for supreme comfort and performance; it will also get approximately 75 combined mpg. The S500 Plug-In Hybrid can cover 18 miles on electric power alone, and maxes out (with the help of gas) at 333 hp on 354 lb-ft of torque. Expect to drop six figures for an S Class from Mercedes, in every variant.

4. A Prius with Lithium Ion Battery

Already the best-selling hybrid on the planet, Toyota (NYSE:TM) is pushing to make its Prius models more efficient than the current roster, according to Japanese reports and Automotive News. To pull it off, Toyota is partnering with Panasonic (PCRFY.OTC) to develop more lithium ion batteries, which are lighter and provide better performance than nickel-metal hydride batteries currently in the Prius. The concept would push a Prius above the 51 highway mpg and increase Toyota’s imposing strength in the hybrid market.

5. Honda’s Civic Tourer with Rear Adaptive Damper System

The 2014 Civic Tourer from Honda (NYSE:HMC) is not all smoke and mirrors. The Civic Tourer has been offered in glimpses at auto shows and in camouflage disguise on the track, but the main innovation is the car’s rear Adaptive Damper System, which will be adjustable on three levels, representing a huge advancement in handling. Coming out first in Europe next year, it remains to be seen when U.S. customers will see the the new technology in action.

6. The Tesla That Can Tow

With the Tesla (NASDAQ:TSLA) Model X expected next year, the electric vehicle maker will have a utility vehicle that can tow up to 5,000 lbs. The car’s high style and considerable performance (0-60 in under 5 seconds) have EV enthusiasts everywhere plunking down deposits for the Model X. Pricing will be at the same level as the Model S, just north of $70,000, but the Model X boasts a four-wheel drive option.

7. The Smartest Chevy Yet

General Motors (NYSE:GM) announced earlier this month it would partner with TimberRock on smart grid technology enhanced by solar panels to power its plug-in Chevy Volt. If the system works out, drivers will allow a control station to deliver only essential power to your Volt, delivering energy back into the power grid and increasing efficiency. It would represent the smartest approach to electric-vehicle technology in the real world, where power supplies are limited during peak hours.

Drivers are always hoping the next big thing from automakers will deliver enhanced safety, performance, and economy. These innovations prove many answers are forthcoming.

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“We feel good about where things are and where they’re headed,” Tesla (NASDAQ:TSLA) founder and CEO Elon Musk said during the recently profitable electric car manufacturer’s second-quarter earnings conference call.

The focus is the future, and the chief executive put an emphasis on expansion in the call, using the company’s strong quarterly results and growing production numbers as proof that Tesla has the financial brawn and necessary momentum to power a production expansion.

Tesla’s second-quarter results came as a surprise. Analysts expected the company to report a loss of $18.9 million in net income, which would have been a marked improvement from the loss of $93.2 million it recorded in the year-ago quarter. But Tesla reported a net income of $26.3 million, an increase of 70 percent from the first quarter. It was a gain driven by record Model S deliveries and a significant improvement in its gross margins.

Revenue reached $405 million compared to $26.7 million in the same quarter last year. “Our financial position and balance sheet have never been stronger,” Musk said during the earnings call. With the financial good news as background, he explained that the primary focus now is on “expanding production to meet worldwide demand.”

That Tesla’s luxury electric vehicle — the Model S sedan — has become popular with the affluent and the environmentally conscious is clear from the numbers. The company sold 5,150 of the cars in the second quarter, or approximately 1,700 per month, a figure comparable to the sales of its top plug-in rivals: the Nissan (NSANY.PK) Leaf and General Motors’s (NYSE:GM) Chevy Volt.

The comparable sales came despite the fact that the cheapest Model S comes with a price tag of around $70,000. Tesla even sells a number of vehicles with better options that cost at least twice as much as Volt or the Leaf.

Expansion began this week as Tesla started delivering the Model S to its first European countries: Norway, Switzerland, and The Netherlands. Provided demand there matches demand in North America, which Musk has said is likely, the company has predicted that “annualized sales for Model S could exceed 40,000 units per year by late 2014.”

Demand is not a problem Tesla is facing, at least according to Musk. “We have production constraint, not demand restraint,” he said on the call. “And we are striving to become demand limited as opposed to production limited.” In fact, throughout the call, the chief executive repeated that Tesla has more supply problems than demand problems.

To remedy those problems, the company is continuing to work out kinks in its factories, ink better deals from suppliers, and make efforts to improve gross margins by becoming more efficient. “It is not some story about how did we get super good,” Musk said of Tesla’s history. “It is how did we stop being so stupid.”

As for now, the company is producing almost 500 vehicles per week, Musk said, and work on new market versions of the Model S for Japan and China is using most of Tesla’s resources.

As a result, production on the Model X will not begin until the end of 2014. Even further away is the long rumored next-generation Tesla vehicle said to be priced at $35,000. But the company is still expanding its base of operations — in the second quarter, it opened seven new retail stores in Europe, Asia, and North America, along with six service centers, and Supercharger coverage more than doubled.

Follow Meghan on Twitter @MFoley_WSCS

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When Grace Lieblein stood up to the plate earlier this summer and took over as vice president of General Motors’s (NYSE:GM) global purchasing and supply chain, she was told she needed to help cut some logistics costs. And by “some,” it mean $1 billion worth, but this is something Lieblein believes she and her team can do with a new simple strategy.

Now that the U.S. automaker has proven it can resurrect success and continue to post impressive sales figures, it’s time for the company to trim costs that detract from that profit. It’ll be a global effort to cut down from the $8 billion operation that includes the transportation of parts, materials, cars, and trucks to dealerships, but it is one that will undoubtedly pay off in the long run.

According to The Detroit News, if GM can cut $1 billion from its material and logistics costs in North America by 2016, it would improve its profit margin by 1 percentage point, reflecting a significant gain for the Detroit-based car manufacturer that could give it the extra boost it needs to reclaim the title of world’s top automaker.

Lieblein believes that the key to this cost-cutting success comes from the implementation of a new logistics strategy that GM has worked to adopt over the past year. It involves examining and evaluating the automaker’s operations as a whole, rather than dividing up its material, logistics, and manufacturing costs and weighing them separately, The Detroit News reports.

GM is ready to look at the big picture and erect big plans, and one of the automaker’s key goals involves the increased construction of operations centers near assembly plants that help ensure that the packaging and transportation of the plants’ products are logical and cost-efficient, and that they aren’t ultimately cutting into the company’s bottom line.

And to help trim transportation expenditures, Lieblein also wants to ensure that the company’s necessary railway systems are up-to-date and stretch long enough. Those that end miles away from GM facilities are conclusively costing the automaker so much money that it is financially worthwhile to pump the necessary funds into the system to extend those lines. Lieblein said to The Detroit News: “In most of our plants we have rail right up into the facility but there are…a handful of plants where we don’t have that. We’re looking at the business cases to make sure it makes sense.”

The automaker has now set a December or January deadline for many of these rail line extensions, especially focusing on those of the Detroit-Hamtramck Assembly Plant, where the new, highly anticipated Chevrolet Volts will soon be rolled out. And while it’ll cost GM $3 billion to extend these lines, spokesman Tom Henderson told The Detroit News that it will ultimately save the automaker $7 million in transportation costs during the next three years.

Lieblein is also focusing on the location of her plants and suppliers; isolated plants are also to blame for increased transportation costs and factory inefficiencies. That’s why GM is asking some of its key suppliers to move closer to remote plants like those in Kansas City, Kansas, and Arlington, Texas, or build new factories closer to them. Luckily, suppliers are reportedly happy to cooperate with the company’s requests and seem to get along well with Lieblein, who told The Detroit News, “You’ve got to be able to make sure the supplier has a healthy, sustainable business going forward.”

So as the automaker continues to negotiate with its suppliers, moving them closer to plants and also extending their assemblers’ rail lines, it’ll also concentrate on its next growth cycle to make sure that the assembly of new vehicles hitting the market are constructed in the most cost-efficient way. It’ll still likely be a few years until Lieblein’s new measures fully make their impact, but the new vice president is still confident that every little bit helps.

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It was only a matter of time before Tesla Motors’s (NASDAQ:TSLA) presence in the auto industry drew the attention of incumbent leaders. And while many expected the electric vehicle maker to go the way of Tucker or DeLorean, Tesla has surprised its critics and held fast — leaving the rest of the industry scrambling to figure out how to address the disruptive contender.

If any firm is geared for taking on the EV market champion, it’s one of the largest automakers in the world: General Motors (NYSE:GM). Its CEO, Dan Akerson, said that the Cadillac brand will be meeting Tesla’s market threat — on its own turf, too.

Akerson told The Detroit News that GM plans “to compete head-to-head” with Tesla, and that GM has gone as far as to set up a small team to study the EV maker. He added that Tesla has established itself as a high-end electric brand, but GM will “sell more [Chevrolet] Volts and lose less money on the Volts than they’ll lose on the Model S.”

If you’re thinking that those two vehicles are hardly comparable, you’d be right. With its recent $5,000 price cut, the Volt will run about $34,995 including shipping but before federal tax credits, while Tesla’s Model S carries a base price of $71,070 including shipping and before incentives. Further, the Volt is an extended range plug-in hybrid, not a true EV, as the Model S is.

Next year’s introduction of the Cadillac ELR should help bridge that gap. With the Cadillac, GM will be taking the Volt powertrain and elevating it to more luxury levels, more so than the utilitarian Volt. That solves at least one of the issues regarding brand image, but the ELR will still run on gasoline, at least part of the time.

As it turns out, Akerson has some reservations about going full electric.

“Akerson said he remains unconvinced that pure electric vehicles are the ‘panacea’ that the American public wants, but understands that the future can change,” Automotive News reports. ”He cited Fisker Automotive, a struggling green-car startup, in contrast to Tesla’s accomplishments: ‘Does anybody even remember Fisker? I mean, there were a number of them; they are all gone,’ he said in the interview of such startups.”

Regardless, GM is in fact working on a purely electric vehicle. The Chevrolet Spark EV is already seeing action in select regions, and just last week, Doug Parks, GM’s vice president for global product programs, said that the automaker is working on a $30,000 electric car with a 200-mile range.

However, rather than scoffing at GM’s ambitions, Tesla CEO Elon Musk was warm and receptive to the news.

Am happy to hear that GM plans to develop an affordable 200 mile range electric car. Right target. Hope others do same.

— Elon Musk (@elonmusk) September 19, 2013

It’s not like GM is jumping with two feet into a market that it has no experience in. As the documentary Who Killed the Electric Car? details, GM built what appeared to be an entirely feasible electric car, the EV1, back in the 1990s. Then, with little to no warning, the program was shuttered, and most of the existing EV1s on the road were crushed.

However, it seems as though Cadillac will be using its ELR as a jumping point. ”I do think when the [Cadillac] ELR comes out late this year, early next — it’s certainly in the same postal code as Tesla, but now we’re going to move up,” Akerson told The Detroit News. “It’s not going to be a mass-produced car.”

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Once upon a time, hybrid and electric vehicles were a laughingstock. They looked like toy boxes, took half the day to charge, and could barely run 35 miles on full battery power. Then Tesla (NASDAQ:TSLA) came along and, buoyed by federal tax credits and government loans, shattered the poor image of EVs forever. Now the biggest of the Detroit Three says it time to take notice.

Dan Akerson, chief executive of General Motors (NYSE:GM), has formed a task force to study Tesla and report back on the potential for the California EV maker to disrupt GM’s business, according to Bloomberg. It represents the shift in company culture Akerson has wanted to implement since taking the reins at GM in 2010. Steve Girsky, GM’s vice chairman, explained Akerson’s approach.

“He thinks Tesla could be a big disrupter if we’re not careful,” Girsky said in reference to GM’s chief. “History is littered with big companies that ignored innovation…” Since the Chevy Volt (priced around $40,000) is being steadily outsold by the Tesla Model S (priced around $70,000), there’s clearly something to be learned from the EV industry rock star and its CEO, Elon Musk.

Style Matters

Perhaps the first lesson for Akerson’s team to absorb is how important style is to drivers. GM has had its share of gorgeous cars in more than a century of designing and manufacturing automobiles. Behind the wheel of a Tesla, drivers feel the luxury factor while scoring style points at every turn. The same cannot be said for a Chevy Volt, though Cadillac’s ELR is a step in the right direction.

Performance Is Everything 

Performance tops the list of every hybrid and electric vehicle owner. If the car cannot perform like a gas-powered car, why bother? Tesla answered this question in impressive fashion, designing a car that can drive over 250 miles on a battery charge. When a driver runs out of juice, there are supercharging stations available where 30 minutes can equate to a full refueling, free of charge with an 80 kWh battery. GM’s Volt can’t quite make it to 40 miles on a charge before switching over to its gas engine.

Undercutting the Upstart

One of GM’s ways to confront Tesla is to introduce a Volt priced near $30,000 in the coming years. Bloomberg reports that Akerson has commissioned engineers to get the Volt price down, but it may not be released until Tesla has its own sub-$40K car, expected within three years.

Once an Innovator

In 2003, GM ended its early electric vehicle experiment, bringing in all EV1s it had leased and sending them off to the crusher.

With that move, General Motors took itself out of the electric vehicle game. Ironically, the EV1 performed far better than its current hybrids, traveling over 70 miles on a charge. It’s taken a decade to get the company’s focus back, and it has Tesla to thank for it.

Dan Akerson doesn’t want to stand pat while another company runs circles around GM, in electric vehicles or not. The industry is waiting for the next EV move from the Detroit Three.

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