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GM VS TESLA

Why did GENERAL MOTORS stop producing the EV1 cars in 1998?

photo by : the manuscript

Discover the other side of history with The Manuscript

 In the late 1990s and early 2000s, California's Zero Emission Vehicle (ZEV) mandate, introduced in the early 1990s by  The California Air Resources Board (CARB), required that 2% of all vehicles sold in the state by major automakers be zero-emission vehicles (ZEVs) by 1998, increasing to 10% by 2003. The policy aimed to reduce air pollution and promote clean vehicle technologies. The mandate played a critical role in spurring the development of early electric vehicles like GM’s EV1.


California's ZEV Legal Challenges


Automakers filed lawsuits against California's ZEV mandate, claiming it was too difficult to meet. These legal challenges, coupled with support from the federal government, weakened the mandate. Under President George W. Bush, the administration threatened to intervene and block California from enforcing stricter emissions standards. This created a political and regulatory environment that pressured California to relax its ZEV rules. In response to these challenges and political pressure, the California Air Resources Board (CARB) eased the original ZEV mandate, allowing automakers to meet emissions standards with alternative technologies, such as hybrid vehicles, instead of focusing solely on electric vehicles. As a result, GM ultimately discontinued the EV1 program in 1998.


Facts


Approximately 1,117 EV1's were produced by GM, but they were not sold outright—they were leased to customers between 1996 and 1999 to meet the requirement that 2% of all vehicles sold in the state by major automakers be zero-emission vehicles (ZEVs) by 1998.


Tesla Motors


Tesla, founded five years later in 2003, revolutionized the EV industry with cutting-edge technology, premium vehicles, and a direct-to-consumer sales model.

  • Technological Leadership: Tesla is known for its proprietary battery technology, advanced software, and autonomous driving systems. It has positioned itself as a tech-first automaker.
  • Market Dominance: Tesla dominates the EV market, with the Model 3 and Model Y being among the best-selling electric cars globally.
  • Challenges: Tesla faces criticism for production delays, quality control issues, and CEO Elon Musk's polarizing public persona.


General Motors Vs. Tesla Motors


The competition between General Motors (GM) and Tesla highlights the contrasting approaches of a legacy automaker versus a disruptive newcomer in the electric vehicle (EV) market.


General Motors (GM):

  • Legacy Leadership: GM has been a dominant player in the automotive industry for over a century, excelling in internal combustion engine (ICE) vehicles. It introduced the EV1 in the 1990s but discontinued it, citing limited demand and regulatory shifts.
  • Current EV Strategy: GM has re-entered the EV market aggressively, thanks to Tesla. They are aiming to become an all-electric company by 2035. Its EV lineup includes models like the Chevrolet Bolt and upcoming vehicles built on its Ultium battery platform.
  • Production Scale: GM leverages its established manufacturing infrastructure and dealer network, giving it a significant advantage in scaling production and distribution.


Key Comparisons

  • Approach to EVs: GM transitioned cautiously into EVs, influenced by regulatory and market forces. Tesla has always been an EV-exclusive brand, driving innovation from the ground up.
  • Production Models: GM uses a traditional dealership network, while Tesla opts for direct sales and online orders, avoiding intermediaries.
  • Sustainability Goals: Both companies have ambitious plans for carbon neutrality, with Tesla focusing on renewable energy integration through products like Powerwall and Solar Roofs.
  • Brand Perception: Tesla is seen as a pioneer and innovator, while GM works to shed its ICE legacy and build credibility in the EV space.


Conclusion


While GM benefits from its manufacturing scale and legacy experience, Tesla leads in innovation and brand appeal. The rivalry reflects the broader transition of the automotive industry toward electrification, with each company adapting to the evolving market in unique ways.


''FEDERAL  ACTIONS''


Obama and Tesla


President Barack Obama and Elon Musk (Tesla) share a notable history rooted in the advancement of clean energy, innovation, and technology in the United States. During Obama's presidency, his administration supported initiatives to combat climate change and promote renewable energy, aligning with Musk's vision for sustainable transportation and clean energy solutions.

One of the key connections between them was the Advanced Technology Vehicles Manufacturing (ATVM) loan program, through which Tesla received a $465 million loan in 2010. This funding played a crucial role in Tesla's early success, helping the company develop the Model S and scale production. Musk has often credited the loan as an important boost for Tesla, which repaid it ahead of schedule in 2013, making Tesla the first American car company to fully repay its ATVM loan.

While Musk has praised some of Obama's clean energy policies, the relationship has largely been professional, with mutual recognition of their respective contributions to innovation and sustainability.


Biden and General Motors


President Joe Biden and Mary Barra (GM) share a strong alignment on the push toward electrification and a clean energy economy. Biden's administration has prioritized electric vehicles (EVs) as part of its efforts to combat climate change, create green jobs, and achieve net-zero emissions by 2050. GM, in turn, has committed to a fully electric future, pledging to sell only zero-emission vehicles by 2035.

In 2018, GM received a $2.5 billion loan from the U.S. Department of Energy (DOE) as part of the ongoing efforts to support clean energy and electric vehicle development. This funding was intended to help GM finance its investments in battery technology and electric vehicle production, particularly in partnership with LG Chem for advanced battery manufacturing in the U.S.

The loan aligns with GM's broader strategy to transition toward an all-electric future, including the development of vehicles like the Chevrolet Bolt EV and the expansion of its EV lineup under the Ultium platform. This support reflects the government's continued commitment to fostering innovation in sustainable transportation.


Quote


"Musk has brought widespread attention to Nikola Tesla’s vision for a more efficient future!"  – The Manuscript


Nikola Tesla


Nikola Tesla (1856–1943) was a Serbian-American inventor, electrical engineer, mechanical engineer, and physicist, best known for his groundbreaking work in the development of alternating current (AC) electricity, which became the standard for electrical power transmission. His inventions and theories revolutionized the way electricity is used and distributed, contributing significantly to modern electrical engineering. The legacy of Nikola Tesla lives on through Elon Musk’s efforts to revolutionize energy and technology, as Musk’s ventures—particularly Tesla, Inc.—embody Tesla’s vision of harnessing electricity and innovation to transform the world.


Quote


"A sustainable future means transitioning to a resource-efficient, circular economy while moving away from a petrol-based economy that produces waste."  - THE MANUSCRIPT


Question


Why would the federal government block a state like California from pursuing a sustainable future?



THE MANUSCRIPT


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"Musk has brought widespread attention to Nikola Tesla’s vision for a more efficient future!"


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GM VS TESLA (TTS) 

"A sustainable future means transitioning to a resource-efficient, circular economy while moving away from a petrol-based economy that produces waste."


THE MANUSCRIPT

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