Despite the fact that General Motors Company GM 0.61% will be the first to put out an electric car in the $30,000 price range and the Model 3 could easily end up rolling out at a later date and at a more expensive price than current estimates, Stratechery’s Ben Thompson believes the success of the Model 3 ultimately lies with the strength of theTesla Motors Inc TSLA 0.84% brand.
Thompson compares Tesla’s brand strength to Apple Inc. AAPL 1.3%‘s and the potential frustrations of GM to those of other smartphone makers who were trying to compete with Apple making high-end phones.
“The real payoff for Musk’s ‘Mater Plan’ is the fact that Tesla means something; yes, it stands for sustainability and caring for the environment, but more important is that Tesla also means amazing performance and Silicon Valley cool,” Thompson said.
This reputation will be critical for both GM and Tesla, and Thompson believes it will ultimately be responsible for the failure of the Bolt.
“Brand and reputation matters far more than being ‘first’ to a product category where every model on the market has fallen short of expectations – except for Tesla,” he writes.
He adds that Tesla was given…
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