140,000 Silverado EV pre-orders = 00M marketing loss
140,000 Silverado EV pre-orders = $700M marketing loss
Good news for general motors have just released they have 140 000 reservations for their electric silverado pickup truck that is more reservations than for any other general motors car in the history of their company however there’s something a little bit weird about the pricing that nobody seems to be mentioning hello my friends welcome to the channel on the
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General motors has 140 000 reservations for the silverado electric pickup truck i’m curious to know which models they’re for though because if you think about it well it’s a really bizarre pricing strategy really really it’s kind of like doing my head in how bizarre it is for those of you wondering gm say they’re going to start production of the silverado electric
Pickup truck next year i personally think based on specifications it’s a fair bit better than ford’s f-150 lightning electric pickup truck but it’s also vastly more expensive i mean not even in the same ballpark now for context ford has 200 000 reservations for the f-150 lightning pickup truck and they’ve started deliveries will not start deliveries they’ve started
Manufacturing the vehicle they say for deliveries next week which is exciting news if you’ve got a pre-order because i mean that pre-order’s worth gold isn’t it you could just take delivery resell it for i’m sure 10 20 maybe even 30 000 more than you paid so that’s pretty cool but ford actually paused pre-orders in december of last year when they got to 200 000
They said stop enough’s enough we don’t mind any more than this we don’t want to be have people waiting for three years to get their pre-order that’s a bit too long that’s why i think they pause pre-orders general motors obviously hasn’t paused pre-orders yet because they haven’t hit 200 000 yet or i don’t know whatever some arbitrary figure i’m sure i’m assuming
At some point they will probably pause their pre-orders but based on the price of this truck maybe they won’t need to i can’t see them getting as many pre-orders for that reason gm released its earnings report this week highlighting the fact it’s accelerating its ev production as consumers appear to warm to the ideal electric vehicles now to be fair gm has been
Saying this for a long long time now they delivered 27 evs in the fourth quarter of last year for those three months 27 for three months in total well you’d think right this year things would be going really well for them because they would have ramped up production well they delivered 450 electric cars in the first quarter of this year so yeah about 120 a month
Chevrolet is promising that it’s all-electric silverado will have a range of 400 miles 4 wheel steering and 10 outlets in the truck bed with 10.2 kilowatt of power those specifications are insane they are epic if it does have those numbers which i believe it will that’s exciting news because think about it the price of those pickup trucks will come down right
Now they’re astronomical for the model with that range it’s out of the price ballpark of 98 of the american economy that’s the challenge here which is why i think gm has a big problem when i say a big problem i mean a very big problem here’s why there will be two versions of the silverado ev pickup early on the first trucks that they’ll build will be the work
Truck version sold to fleet buyers how do you become a fleet buyer well just create a business name then you can be a fleet buyer right anyway those vehicles will go into production for 39 000 us dollars that is insane before a vehicle built from the ground up the f-150 it’s not really built from the ground up as a as an electric vehicle i mean it has had some
Serious modifications to make it impressive electric vehicle it’s still not an ev from the ground up like the silverado is 39 000 us dollars gm will unquestionably lose at least 10 000 us dollars per vehicle at least there is no chance they will make a single dollar profit in fact they’ll lose millions of dollars on that vehicle because it is a marketing tactic
That price point was created because ford created it actually no tesla created it first and the tesla backtracked but anyway it doesn’t matter ford went here we’ll we’ll match you tesla and then silverado went and then general motors went we’ll match you ford and now look what they’ve done they put themselves in a position that they don’t need to be in they didn’t
Need to sell it this cheaply they could have sold them at cost which i think is going to be around fifty thousand dollars per vehicle because remember they’re not using lfp batteries they’re using expensive batteries which use what nickel and cobalt they’re expensive they’re not cheap batteries there is no way they can sell these and make a profit at 40 000 us
Dollars the big problem here is the other variant available costs how much well first of all this work truck for 39 000 us dollars will offer 510 horsepower and 615 pound-feet of torque and it will have 8 000 pounds of towing and 1 200 pounds of payload however the second option of trucks costs 105 000 us dollars these are called the rst and they’ll be loaded
With bells and whistles production should start for these vehicles in the second half of 2023 say general motors in addition an off-road trail boss model will follow both the work truck and the rst versions are expected to have a 400 mile range so the challenge here is how many of those hundred and forty thousand pre-orders do you think are for a hundred and three
Thousand us dollar vehicle i would say less than half what does that mean at least seventy thousand vehicles gm is going to sell next year at i believe a loss of at least ten 000 us dollars per vehicle that’s a 700 million loss simply for marketing purposes they could have easily sold just as many if they sold them at 50 000 people will pay that for a vehicle of
This kind of quality these kind of specifications that’s electric it’s going to save them money for their operating costs a lot of fleet buyers want to save money right they’ll pay that price gm didn’t have to pay 700 us million dollar dm didn’t have to have a marketing budget of 700 million us dollars they already have a big enough marketing budget as it is they
Already spent about 2 000 us dollars per car to sell their vehicles they didn’t need to sell these trucks there was a wait list a mile long for the cyber truck 1.3 million right there is a waitlist to mow along for most good evs on the market right now general motors did not need to put themselves in this position now will they make money on the 103 000 version
I’m sure they will for sure will that make up for the fact that they’re losing money on all of the 39 000 us dollar version if you think they’re not you’re crazy you have no idea the cost of evs you have no idea the cost of nickel right now the cost of lithium right now the cost of cobalt right now really the fact they’re not using lfp batteries even if the cost
Of what they were a year ago these trucks would still be sold at a loss at these prices but the fact that nickel is now worth more than gold essentially yeah no crazy and when it comes to this hundred and three thousand dollar rst model similar to the all-new gmc hummer ev super truck the silverado ev will have a special boost option in the silverado ev they’re
Gonna call this function the wide open watts mode general motors have a lot of different um what do you want to call it catch phrases their marketing team obviously have a field day with this company they’ve got all these kinds of names for the heat pump they call it some magical energy generation thing altium batteries ultim everything it’s yeah anyway in the wow
Mode the rst will have 664 horsepower and more than 780 pound-feet of torque that’s a lot of torque and power you’ll have an estimated 0-60 mile per hour time of 4.5 seconds the ev will have standard dc fast charging adding up to 100 miles of charge in 10 minutes and will be built at gm’s new factory zero in detroit the rst version will be capable of carrying 1
300 pounds of payload and tying up to 10 000 pounds that’s a pretty good towing number for an ev and it will feature the multiflex tailgate my favorite feature of this pickup truck it’s awesome every truck should have it i can’t understand why they don’t and i have a special feature called the multiflex mid gate the mid gate allows the driver to fold down the back
Seat to extend the truck bed as you can see how it all folds down it’s amazing because i mean essentially you’re getting like an suv in a sense if you wanted to use it that way or you can load massive things into the truck that you couldn’t otherwise load with a standard truck bed i really love this feature apparently the cyber truck will have this fingers crossed
That it does at this point chevrolet has not changed the production schedule for the silverado ev but considering what’s happening with ford for getting production now i wouldn’t be surprised if general motors is doing everything they can to try and get their avs out faster because currently they’re about a year behind ford and i’m pretty sure they’re not happy
About that considering they claim the world’s number one ev manufacturer now to be fair generators made a lot of profit in the first quarter of 2022. they did that’s a true fact but their sales are declining pretty quickly that’s also a true fact whatever excuse you want to make you want to say there’s chips you want to say there’s whatever production problems
Where there’s always an excuse to be made they’ve been making excuses for years it’s time to quit the excuses and just say these are our numbers these are our delivery numbers this year and you know what excuses be damned everyone is operating in the same environment there are no excuses gm will struggle not to lose a lot of market share over the next decade why
Because lots of manufacturers are manufacturing evs tesla is ramping up its production massively and quite a lot faster than general motors is believe it or not i know that’s hard to believe for people who love general motors and don’t like tesla but that is true now i want general motors to succeed and i believe that mary barra needs to get out of the way for
That to happen if you don’t believe me well check out some of the videos i’ve made about mary barra and some of her extraordinarily insane claims which make you question if she is actually insane or not i have my serious doubts thank you for watching bye
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140,000 Silverado EV pre-orders = $700M marketing loss By The Electric Viking