GM Forms 'Team Tesla' to Scrutinise Electric Rival's Strategy
General Motors has set up an internal task force, informally called 'Team Tesla', to examine Tesla's rapid growth, technical approach and business model as the electric upstart's valuation surges.
General Motors has established an internal task force, known as 'Team Tesla', to analyse the electric vehicle maker's technology, sales model and market strategy after Tesla's market value surged to $23 billion in 2013. The move comes as GM's leadership identifies Tesla as a serious competitive threat, despite Tesla having only a single model on sale at the time.
Tesla's growth has forced established manufacturers to re-examine their own strategies. In 2013, Tesla's share price rose by 470 percent, propelling the company's value to nearly half that of GM, which had itself climbed 25 percent to $50 billion. While GM still dwarfs Tesla in production and reach, the gap in market value narrowed rapidly, prompting GM's executive team to act.
What GM's 'Team Tesla' is studying
The task force, assembled by CEO Dan Akerson and Vice Chairman Steve Girsky, draws on staff from product planning, engineering, manufacturing and sales. Their remit is to scrutinise Tesla's approach to electric powertrains, battery technology, vehicle range and charging infrastructure. Tesla's Model S, with its 200-mile-plus range and relatively low-cost battery pack, has set a benchmark that GM's engineers are keen to understand in detail.
- Technical analysis of Tesla's battery pack cost structure and performance.
- Assessment of Tesla's extended-range capability in the Model S.
- Review of Tesla's direct-to-consumer sales and service model, which bypasses traditional franchised dealerships.
- Evaluation of Tesla's network of free charging stations for owners.
GM's team has also examined the way Tesla markets and sells its vehicles. Unlike GM, which relies on a network of state-protected franchised dealers, Tesla operates through shopping mall showrooms and online channels. While GM is unlikely to abandon its dealer model, the company acknowledges that Tesla's approach has disrupted conventional automotive retailing.
Why Tesla's approach concerns GM
Tesla's ability to move quickly and take risks has drawn attention inside GM. Executives have pointed out that Tesla's small size and entrepreneurial mindset allow it to bypass much of the bureaucracy that slows legacy carmakers. Vice Chairman Steve Girsky has described Tesla as not just changing how electric cars are built, but also how they are sold and supported. The scale of Tesla's ambition, and its willingness to challenge established norms, has made it impossible for GM to ignore.
The creation of 'Team Tesla' signals a shift in how GM views its competition. Rather than dismissing Tesla as a niche player, GM is treating the electric carmaker as a real threat to its business. The task force's findings are expected to inform GM's own electric vehicle strategy and future product planning.
