GMs Cadillac Is Coming for Tesla. The Lyriq Is on the Way, – Barron’s

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The 111-year-old General Motors is serious about a future with all electric vehicles, and about making sure Tesla, the husky teenager on the automotive block, doesnt shove it into the shadows. GM launched its electric Lyric Cadillac SUV Thursday evening.

It feels a little odd to say General Motors (ticker: GM)a firm selling millions of cars generating hundreds of billions in salesis coming for Tesla (TSLA)a company selling hundreds of thousands of cars generating tens of billions in sales. But thats automotive reality these days.

Tesla, including stock-market value and debt, is valued at roughly six-times more than GM. The traditional industry is chasing the EV upstart. Volkswagen (VOW. Germany) management suggested recently that Teslaor, perhaps, Volkswagencould become the largest company in the world in the coming decade as autonomous driving, software, and electrification come to define the driving experience.

GM would like to be included in that conversation. The Lyriq will be available in late 2022 and boasts fast charging and a range of 300 miles per charge. Lyriq will start at about $70,000.

Led by Lyriq, Cadillac will redefine American luxury over the next decade with a new portfolio of transformative EVs, said GM North America President Steve Carlisle in the companys news release. We will deliver experiences that engage the senses, anticipate desires and enable our customers to go on extraordinary journeys.

Its an attractive vehicle. The comparable Tesla Model X gets 300 to 350 miles per charge, depending on battery configuration. A Model X starts at about $80,000; sales started in 2015. .

GM also boasted the ability to deliver truly hands-free driver assistance. That is presumably similar to Teslas autopilot, which comes as an upgrade on all Tesla vehicles.

Investors have to decide how not only which vehicle is better, but how fast electric vehicles will penetrate the overall car market. More EVs are coming from myriad auto makers. And traditional car companies, such as GM, have to manage converting legacy gasoline-based sales to battery-powered vehicles. Tesla, of course, only makes electric vehicles.

The market, at this point, is betting Tesla will be a long-term winner in the EV wars. Tesla stock is up 256% year to date, far better than comparable returns of the S&P 500 and Dow Jones Industrial Average as well as its automotive peers. GM stock is down about 27% year to date. Volkswagen shares have fallen about 17%.

Recent gains have made Tesla the worlds most valuable car company.

Write to Al Root at allen.root@dowjones.com

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GMs Cadillac Is Coming for Tesla. The Lyriq Is on the Way, - Barron's

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