GM Studying Tesla to Develop 200-Mile EV

Sep 20, 2013 08:42 AM EDT | Matt Mercuro

General Motors is studying Tesla to help produce a car capable of going 200 miles per charge for approximately $30,000.

Vice President of Global Product Development Doug Parks wouldn't confirm when or if such a car will ever be built however, but the automaker is looking into it, according to the Associated Press.

GM currently sells its Chevrolet Volt plug-in hybrid, which can go 38 miles on electric power for $35,000. The company also sells the Chevrolet-Spark, an all-electric vehicle that can go 82 miles on a single charge.

The Spark is sold for $26,685, though all electric vehicles are eligible for a $7,500 federal tax credit.

A reasonably-priced electric car with a 200-mile range would be very appealing to Americans who avoid EVs because they're afraid of getting stuck on the road somewhere.

"That would be a huge step forward, no question," said Tom Libby, lead North American analyst for the Polk automotive research firm, according to the Associated Press.

Cars powered by batteries make up just 0.3 percent of U.S. sales according to Libby. If GM is successful however, that number would increase drastically.

GM is studying Tesla for a number of reasons, including the fact that its Model S recently recorded the highest test score ever by Consumer Reports magazine.

Tesla CEO Elon Musk said recently that his company is working on a mass-market electric vehicle that could go on sale at the end of 2016.

Musk said Tesla's new vehicle will have around a 200-mile range and cost $35,000.

"Their pricing is up there for a real unique customer," Parks said of Tesla. "The real trick will be who can do a 200-mile car for more of the price range I'm talking about. We're all in races to do that."

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