Tesla (TSLA) Analyst Laughs Off GM's (GM) Chevy Bolt Competition Fears

Commenting on the news, Baird analyst Ben Kallo is not impressed; issuing a report earlier entitled "I've Always Wanted a Chevy? We Think Not."

Kallo actually believes the Bolt’s expected 2017 introduction and price validates Tesla's timeline and pricing for the Model 3 which has been met with significant skepticism.

He believes the Model 3 should have strong demand as TSLA vehicles are purchased for performance, technology, quality, and brand while GM has had limited success in EVs and PHEVs. "We believe the Model 3 will be a mid-level sedan as opposed to a hatchback, and compete for market share against the Audi A4 and BMW 3 series," he said. "Additionally, we believe the Model 3 could have several battery options allowing for ranges >200 miles per charge, and TSLA’s battery factory should reduce Model 3 costs allowing for 20%-25% gross margin. We expect Model 3 demand to be strong given TSLA’s history of making quality, high performance electric vehicles which have had increasing demand for the past three years, unlike Chevy’s Volt which had U.S. y/y sales decline 2% in 2013 and 19% in 2014, according to Ward’s Auto."

Kallo also notes while LG Chem is expected to be the battery supplier for the Bolt, Tesla continues to leads on the battery technology front. "In our opinion, TSLA's experience in technology development still ahead of competitors and battery factory should help secure leadership position," he said.

Meanwhile, while the stock is down today, Tesla's CEO Elon Musk is scheduled to present at the North American International Auto Show(NAIAS) in Detroit tomorrow.