Bitcoin price trading within tight rangesAdoption picking up, positive for BTC in the long-termTransactional volume droppingIt’s all about adoption. Luckily, metrics point to increasing participation, a development which is bullish for BTC in the long term. Before we initiate longs, BTC/USD is technically bearish. The position will change after there are substantial gains above $3,800.Latest Bitcoin NewsFundamentalsTraders, as well as investors, are neck deep in bear territory. However, there is something special about this correction: there is a level of resilience among coin holders. Part of this rejection is because of increasing awareness and Satoshi’s vision-mission statement taking root. Note that Bitcoin is a public blockchain and its source code open. That is why there are divergent interpretations.On the one hand, some individuals are convinced Bitcoin is not cash but a store of value, a settlement layer where people from all over the world can shield their value from an inflation-resistant network. On the other, BTC can operate as a means of exchange, competing with legal tenders as USD.Bitcoin going from $3,500 to $1,000,000 a lot less crazy than it getting to $3500 in the first place.Never underestimate #Bitcoin.— Alec Ziupsnys (@AlecZiupsnys) February 2, 2019All the same, we know that just as easy it was for BTC to jump from $0.001 to $1, there is nothing that can prevent Bitcoin from expanding to $20k, 50k or even $250k. It’s all about adoption, and there is movement in that sector.Candlestick ArrangementsTechnically, BTC is under immense sell pressure and is “hanging on.” Like before, bulls have as long as they trend within this $300 range between $3,500 and $3,800. Our trade plan is simple: BTC prices must expand above $3,800 with high trade volumes preferably above 35k before we can think of initiating longs.The only hindrance is Feb 5 bear candle that threatens to drive prices below Jan 2019 lows. Note that is there is a whole bear bar below Jan 2019 lows and this support level, it will be likely that sellers will press lower reversing gains of late Dec 2018. It’s because of this uncertainty that we recommend patience and even shifting BTC to stables until after there is a defined trend.Technical IndicatorsTransactional volumes are drying up, and BTC/USD is trading within a tight trade range. Because of Jan 6 bear bar with above average volumes—13k versus 10k, we need a counter bull bar with equal or higher trade volume for a trend reversal. These volumes should be above Jan 20’s 20k and even Jan 10’s 35k.
Archives for February 7, 2019
The Palestinian military-political group Hamas, which the U.S. government deems a terrorist organization, may be using the Coinbase cryptocurrency exchange for fundraising.
Earlier this week, the Israeli blockchain analytics firm Whitestream identified several bitcoin wallet addresses referred to on official Hamas digital media channels in public requests for donations. One such appeal for bitcoin donations to support “the resistance” was issued on January 31, via a Telegram channel run by Abu Obeida, a spokesman for Hamas’ military wing.
As the Israeli newspaper Globes reported, those wallets included a Coinbase account.
Although Coinbase declined to comment on the address in question, Whitestream told CoinDesk that the account continued to receive transactions even 48 hours after it was identified and reported in the media.
“Based on shared inputs, we can tell that Hamas blockchain transactions were signed by addresses that are operating on Coinbase company wallets,” Itsik Levy, the firm’s founder and CEO, told CoinDesk.
Adding this account’s sum to two other bitcoin addresses Whitestream also identified as recipients of the Hamas fundraising campaign, the Islamic organization appears to have garnered less than $4,000 in bitcoin.
“[Hamas] is struggling with getting funds from the Israeli government and Qatar,” Levy continued. “We’ve heard of other Islamic extremist organizations doing the same thing over the past few years…now Hamas tries the same thing.”
“It’s still an active campaign,” he added. “It just started.”
Even if this is a case of terrorist financing solicited by the Hamas military wing, the Izz ad-Din al-Qassam Brigades, Coinbase is hardly the sole company involved with this week’s activity.
Whitestream also reportedly identified this Hamas-operated Coinbase account potentially sending bitcoin to a Binance account and a CoinPayments account, the latter of which is a wallet provider legally incorporated in the Cayman Islands. Binance and CoinPayments did not immediately reply to requests for comment on these transactions.
Several studies – including a 2018 report by the Foundation for Defense of Democracies’ Center on Sanctions and Illicit Finance – have asserted cryptocurrency usage among jihadists is still an extremely “fringe” activity.
Whitestream co-founder Itsik Levy told Globes “only 2 percent” of the bitcoin transactions his firm analyzed were connected to “terrorist or criminal activity.”
Furthermore, compared to a CoinDesk report from 2018, even the monthly volume of a single bitcoin dealer serving dozens of Gaza-based retail investors would dwarf the sum collected so far in these Hamas-affiliated accounts.
The Hamas spokesperson has not posted in the Telegram group since the last request for bitcoin donations on February 2, CoinDesk found. On that same day, this bitcoin address was tweeted by the Brigades’ global outreach account.
This may be inspired by the way the Islamic State’s Gaza wing, a fierce rival of Hamas, reportedly raised $8,000 worth of bitcoin donations by March 2018. However, there appears to be confusion among these supporters about the transparent nature of blockchain data.
On January 30, Palestinian journalist Hussam Al-Dajany said during an interview on Hamas-owned Al-Aqsa TV that: “People who donate using this currency cannot be identified by any security agency.”
Hamas image via Shutterstock
Customers of Wells Fargo, the 13th largest bank in the world, have been unable to gain access to online banking, ATMs, and in some cases credit cards, showing the merit of digital assets like Bitcoin.
My card acting funny, can’t get access to the app, and customer service doesn’t seem to be answering the phone. What’s going on #WellsFargo?? It’s too early for this nonsense!
— Austin⚡️ (@austin3000__) February 7, 2019
On February 7, Wells Fargo officially confirmed the outage of its mobile application and ATMs, apologizing to its customers.
The outage is said to have occurred in early U.S. morning and Wells Fargo is in process of recovering its services nationwide.
We’re experiencing a systems issue that is causing intermittent outages, and we’re working to restore services as soon as possible. We apologize for the inconvenience.
— Wells Fargo (@WellsFargo) February 7, 2019
Customers Not Happy, Investor Cites Importance of Bitcoin
While Wells Fargo responded speedily to the complaints of its customers, the affected services remain inaccessible after more than 2 hours the bank confirmed an outage.
A Fox Business report revealed that some clients were experiencing difficulties in accessing the bank’s system as early as Wednesday.
An increasing number of customers have started to demand reimbursement for the period in which individual users were not able to utilize the Wells Fargo mobile app and online banking platform.
The bank has been unable to identify exactly how many of its customers were affected by the outage, which was reportedly caused by a systems issue originating from its core infrastructure.
Wells Fargo’s Hilary O’Byrne confirmed to NBC that the bank has acknowledged the issue and is currently implementing a solution.
Following the incident, Anthony Pompliano, a partner at Morgan Creek Digital, reaffirmed the advantage Bitcoin has over the existing banking infrastructure.
Wells Fargo’s system is shut down right now.
Bitcoin never shuts down. pic.twitter.com/bJss6667MC
— Pomp 🌪 (@APompliano) February 7, 2019
Any server, platform, or application that is connected to the internet and is hosted from a central infrastructure is vulnerable to downtime, outage, and security breach.
According to BitcoinUptime.com, the Bitcoin blockchain network has been up for more than 99.983 percent since it has been live more than ten years ago.
While it is possible for exchanges and third-party service providers that support the Bitcoin blockchain network to suffer downtime, the network itself hardly faces any downtime.
In 2010, less than one year after the Bitcoin network launched, it suffered a vulnerability called “CVE-2010-5139” which created many BTC in two different addresses.
The community, which includes the open-source community of developers, miners, and node operators executed a fork or a network upgrade to fix the issue.
Apart from the CVE-2010-5139 vulnerability, Bitcoin has suffered virtually no downtime as seen in the 99.9832961843 percent figure presented by BitcoinUptime.com.
Nick Saponaro, an executive at a blockchain project, said:
Wells Fargo being down is the perfect example of why taking ownership of your funds should be a priority. When it’s in their bank, it’s their money. If their system fails, so does your ability to access funds as we’ve seen today. This can’t happen with crypto.
Second Outage in 1 Week
On February 1, San Francisco Chronicle reported that Wells Fargo was facing a systems issue, a similar technical problem that caused the outage on February 7.
“We are currently experiencing a systems issue, and as a result some customers are unable to log into mobile and online banking. Our branch and contact center team members are able to assist customers while we resolve this issue as quickly as possible. We apologize for any inconvenience,” the bank said last week.
In a large-scale infrastructure, when a systems issue emerges and affects the entire platform, it is typically challenging to immediately address the issue and find a permanent fix.
It is possible that a similar systems issue triggered its most recent outage and based on the company’s previous dealing with the same problem, it could require a significant systems update to address it.
In the past several hours, some users suggested that the issue is not exclusive to the bank’s online banking platform and mobile app.
“Direct deposits have been rejected people say, and on social media people are not able to use their cards. Wells Fargo has message to call for support or visit an ATM but those two are down. Branches cannot access accounts either. It’s not just the online banking/mobile app,” one user claimed.
Ripple price stable, reject lower lowsIMF proposes a duo cash system with virtual currencies and cash in circulationTransaction volumes low, likely to spike as prices recoverFinally, IMF economists agree that there is a way governments can incorporate virtual currencies in their economies. Any assimilation would be an endorsement that would see prices of digital assets including XRP claw back losses.Ripple Price AnalysisFundamentalsThe global economy is yet to recover from the GFC of 2008-09. With trillions gone down the drain, Satoshi took advantage of this mayhem, releasing an alternative. Soon after, Ripple Inc rolled out a blockchain based system that banks can use to move value instantaneously in a trustless environment. Strides are visible.As Ripple Inc try to wrestle out dominance from SWIFT and penetrate China, the IMF economists Ruchir Agarwal and Signe Krogstrup are floating an idea. That of creating a dual system of fiat and digital currencies allowing central banks to cut interest rates and even driving them to sub-zero levels. Here’s what they think:“The proposal is for a central bank to divide the monetary base into two separate local currencies—cash and electronic money (e-money). E-money would be issued only electronically and would pay the policy rate of interest, and cash would have an exchange rate—the conversion rate—against e-money.”Candlestick ArrangementsAfter yesterday’s slide, XRP prices are back to positive territory, rejecting lower lows. In an effort versus result point of view, this is bullish, and as mentioned before, every dip is technically a buying opportunity. It is easy to see why.From the charts, it is clear that bears did struggle to reverse gains of Jan 30. Behind their consistency were below average volumes paling in comparison with those of Jan 30’s 47 million versus 17 million. Considering our position, it is likely that the double bar pattern of Jan 29-30 will be confirmed.That means rejection of lower lows and reversal of Feb 6 losses. After that, it will be a matter of time before XRP will surge past 34 cents triggering longs.Technical IndicatorsVolumes are low and marking trend resumption will be a spike in market participation driving prices above the 61.8 percent Fibonacci level. Ideally, volume accompanying this uptick should, first of all, exceed averages of 17 million and 47 million of Jan 30.
The Dow’s mid-week sell-off took an even steeper turn on Thursday after White House economic adviser Larry Kudlow broke from the Trump administration talking point that the United States and China are close to reaching an agreement to end the trade war before new tariffs kick in at the beginning of March.
Kudlow: US & China ‘Miles’ Apart on Trade Deal
Speaking with Fox Business, Kudlow — who has served as US President Donald Trump’s Director of the National Economic Council since 2018 — said that that world’s two largest economies had a “pretty sizable distance” to cover before they could put an end to the trade war that has had global stock markets on edge for months.
“We’ve got a pretty sizable distance to go here,” Kudlow told Stuart Varney. “To quote a colleague of mine – ‘we have miles to go before we sleep.’”
Those comments seemingly contradicted remarks that US Treasury Secretary Steven Mnuchin had made just one day prior. Stating that the US-China trade talks had so far been “very productive,” Mnuchin revealed that he would personally lead a delegation to China to work out remaining sticking points ahead of the March 2 deadline.
“We are committed to continue these talks,” Mnuchin told CNBC. “We’re putting in an enormous amount of effort to hit this deadline and get a deal. That’s our objective.”
Dow Crashes More than 350 Points
The US stock market had already been in decline on Thursday morning, with the Dow plunging by triple digits at the opening bell and the Nasdaq creeping further into the red after almost bursting out of its bear market on Tuesday.
The already battered Dow did not take Kudlow’s comments well, and mounting losses quickly thrust the index more than 250 points into the red.
Trump Won’t Meet with Xi, is the Trade Deal Falling Through?
Thursday wasn’t the first time that Kudlow has thrown cold water on trade deal optimism from other White House advisers — and even President Trump himself. Given Kudlow’s seeming inability to hold the party line, one begins to wonder (if only facetiously): Is he shorting the Dow?
In this case, though, it appears Kudlow’s gloomy trade war comments may be vindicated. Shortly after his comments sent traders into button-mashing mode, his former employer — CNBC — reported that a meeting between Donald Trump and Chinese President Xi Jinping is “highly unlikely” to take place before the trade deal deadline. Considering that Trump previously said he will not sign a trade deal before he has a sit-down with Xi, this report put the odds of the US and China finally putting an end to the trade war even further in doubt.
That, unsurprisingly, threw the stock market even further into panic mode. As of the time of writing, the Dow Jones Industrial Average was down 355.63 points or 1.4 percent, the S&P 500 was down 1.48 percent, and the Nasdaq had plunged by 1.69 percent.
Featured Image from REUTERS / Kevin Lamarque
Fundstrat’s Tom Lee had predicted Bitcoin price to touch the $25,000-mark by the end of 2018. The November crash prompted the crypto bull to lower his prediction to $15,000. However, against the projections, the digital currency closed the year just shy of $3,800, according to CoinMarketcap.com.
The new year also did not bring much relief to the bitcoin and the rest of the cryptocurrency market. The industry entered its most extended bear cycles in February 2019 and, according to Fundstrat, it is heading lower shortly. The bullish-turned-bearish market research firm said in an email to Bloomberg that bitcoin could now fall below its current-bottom level near $3,100.
Fundstrat Set Downside Target towards $2,270
Fundstrat posted the price action of three of its cryptocurrency indexes: FS CryptoFX 10, FS CryptoFX 40, and FS CryptoFX 250. The numbers 10, 40, and 250 reflects the ranking of cryptocurrencies in the index. For instance, CryptoFX 10 tracks price data of top ten cryptocurrencies by market capitalization, which include Bitcoin, Ether, and XRP. Similarly, CryptoFX 40 tracks the top 11 to 40 digital currencies. And so on.
Meanwhile, the Advance/Decline line is a technical indicator which plots the difference between the number of rising and falling assets every 24-hours. A rising line indicates a bullish trend, while a falling line reflects a bearish trend.
Robert Sluymer, the market strategist with Fundstrat Global Advisors, found that CryptoFX 250, an index comprising of smaller cap coins, were at the maximum risk. He told Bloomberg:
“The price structure for most cryptocurrencies remains weak and appears vulnerable to a pending breakdown to lower lows. Fundstrat’s advance/decline indicator is at risk of breaking to new lows.”
While the CryptoFX 250 index tracks the performance of the top 51 to 300 cryptocurrencies by market capitalization, its negative performance plagued the market sentiment of advanced indexes as well. The CryptoFX 40 index, for instance, was heading towards its previous lows, expecting a breakdown action. Similarly, the CryptoFX 10 index, which includes bitcoin, was also hinting a double bottom scenario soon.
“A break below the fourth-quarter lows at $3,100 would imply a decline to $2,270, while a move above $4,200 is needed to signal Bitcoin is beginning to improve,” Sluymer said about bitcoin.
In our bitcoin analysis published yesterday, we have found that the digital currency is resilient to bearish pressure near the support trendline of the current falling wedge formation. Bitcoin had attempted to break below the said floor on five separate occasions recently. In its sixth attempt, the digital currency is also nearing to the apex of the falling wedge, which means it could attempt a breakout action soon.
However, an extended downside momentum could lead Bitcoin to form a double bottom scenario at $3,310, which is also a bullish reversal pattern.
Click here for a real-time bitcoin price chart.
Featured Image from Shutterstock. Price Charts from TradingView.
Tron prices shrink ahead of Feb 11 BTT airdropBook hotels through Travala and pay using TRXTransactions volumes low, prices could drop towards Jan 21 lowsDespite increasing adoption and upcoming BTT airdrop, TRX is yet to print above BTT Pre-ICO levels. Nevertheless, TRX stands to weather strong sell pressure and resume their uptrend in the third stage of a classic bull breakout pattern.Tron Price AnalysisFundamentalsThrough Travala, you can now pay your accommodation using TRX in 82,311 Destinations across 210 countries. What’s more, by settling your bills using TRX and other supported coins, you will be saving. To quantify, paying using TRX in this Next-gen Online Travel Agency (NOTA) is often, 15 percent cheaper and more convenient. It is so because the network is blockchain powered, decentralized with incentives. Developments as these are steps in the right direction as it guarantees demand stemming from increasing adoption.While Travala increases their payment options, Poppy–a Point of Sale System funded by Tron is already undercutting Visa and other payment processors. As a better alternative to traditional payment systems, Poppy’s objective is to “transport digital currencies into the retail space.” All a merchant or a retailer has to do is to update their point of sale system and install the Poppy app.Candlestick ArrangementsThere is resistance for higher high, and as liquidation prevents further upsides, prices are relatively unchanged. In the last week, for example, TRX is down 4.7 percent but stable. All the same, we retain a bullish stand.For aggressive traders, every low is technically a buying opportunity. That is only applicable as long as TRX prices are trending above 2.5 cents. Note that TRX/USD is trading within a bullish breakout pattern with clear supports at 2.5 cents.As breakout patterns dictate, following an upsurge is a retest. Therefore, in line with this projection, we expect TRX prices to shrink back to 2.5 cents. After that, subject to participation levels, TRX may resume trend as prices race above 3.1 cents towards 4 cents.However, this largely depends on BTC performance and the demand of TRX ahead of Feb 11 BTT airdrop.Technical IndicatorsOur trade trajectory is clearly defined. TRX is bullish. However, for trend resumption, participation levels must exceed Feb 4 volumes of 42 million. Spikes as such will reaffirm bulls, paving the way for 4 cents as laid out in previous TRX/USD trade plans.
The U.S. stock market declined sharply on Thursday after the Bank of England (BOE) slashed its growth outlook for 2019, citing underlying risks tied to Brexit. The United Kingdom is struggling to carve out a clear exit strategy from the European Union after Members of Parliament voted to reject Theresa May’s latest Brexit deal.
DOW JONES TAKES THE PLUNGE
All of Wall Street’s major indexes headed for sharp losses Thursday morning, and were on track for their second consecutive down session. The Dow Jones Industrial Average opened sharply lower, reflecting a steep loss in the futures market. It was last down 320.94 points, or 1.26%, to 25,069.36.
The broad S&P 500 Index fell 1.4% to 2,694.58, with eight sectors reporting losses of 1% or more. Shares of energy and materials companies were down the most during morning trading after Trump’s top economic adviser suggested that the United States and China were not close to signing a new trade deal.
The technology-heavy Nasdaq Composite Index is down 1.6% to 7,259.71.
A measure of implied volatility known as the CBOE VIX climbed double digits on Thursday. VIX reached a session high of 17.67 on a scale of 1-100 where 20 represents the historic average. The so-called “fear index” had recently traded at four-month lows.
FOG OF BREXIT
Global growth woes were at the center of the selloff on Thursday after the Bank of England slashed its forecast for the economy this year and next. BOE Governor Mark Carney said the downward revision was due to the ‘fog of Brexit’ hanging over the U.K. Last month, Prime Minister Theresa May failed to convince Members of Parliament to back her Brexit deal, which set the stage for a fiery debate in the House of Commons.
On Jan. 29, British lawmakers voted in favor of a non-binding agreement that opposed a no-deal Brexit. MPs also voted for an amendment that would allow “alternative arrangements to avoid a hard border” with Ireland. Prime Minister May is now pursuing the change the MPs have backed.
However, talks with the EU have not gone smoothly, with the latest reports showing a stalemate between May and Jean-Claude Juncker, the European Commission’s President. Despite holding “robust and constructive” talks on Thursday, May and Juncker were unable to break the impasse. They have vowed to meet again at the end of February.
Featured Image from Drew Angerer/Getty Images/AFP. Price Chart from TradingView
Someone is poorly impersonating the highly anticipated bitcoin futures trading platform Bakkt in an apparent attempt to bilk people out of their bitcoin.
On Wednesday night, the CoinDesk news team received an email (subject line: “Bakkt News!”) claiming that the platform was set to launch on March 12. The email, sent from a gmail address and written in broken English, further stated that Bakkt would be seeking to raise $50 million in a second financing round and directed readers to a website, bakktplatform.io.
There, prospective investors are invited to register by entering their name and email address. After going through this process, visitors are presented with a bitcoin address to send their money and asked to provide their own address to receive their “profits” from the investment.
As of Thursday morning, no funds had been sent to the wallet.
The site (registered just a week ago through WhoisGuard, a domain owner-obscuring service in Panama, according to a WHOIS lookup) is a fake.
A spokesperson for Intercontinental Exchange (ICE), Bakkt’s parent company, told CoinDesk: “that is not a Bakkt website and we wouldn’t have communicated in that way.”
Further, the email’s claims about Bakkt are dubious at best.
No launch date
For starters, Bakkt has no official launch date right now.
The platform is still waiting on regulatory approval to begin listing its futures product, and the Commodity Futures Trading Commission (CFTC) is nowhere near such an approval.
Indeed, the CFTC has not even published Bakkt’s self-warehousing proposal for comment. Once that proposal is released, the general public will have 30 days to respond. After the comment period ends, the CFTC’s commissioners will likely take a few days to review the feedback before voting to approve or deny the proposal.
In that light, a March 12 launch date would be an aggressive target – and just to be clear, Bakkt has made no such commitment.
Even more implausible, however, is the email’s announcement of a “Second Financing Round.”
First, Bakkt just raised $182.5 million at the close of 2018, less than two months ago. And it strains credulity to imagine that a regulated institutional platform would solicit funds from the general public through a website, require just a name and email address to invest (though “company” and “industry” are optional fields on the registration form) and accept bitcoin only.
“We are at the stage of completing the testing of Blockchain on our platform, our tests have shown high results of efficiency and manufacturability using Blockchain technology in contrast to Fiat,” the bogus Bakkt website explains (sorta). “Тhe near future we plan to create the first regulated exchange of the institutional class in a developing industry and much more [sic].”
If that pitch isn’t persuasive enough, the site promises investors a return within three days of the platform’s launch (so by March 15, presumably). Perhaps appealing to FOMO, it says the platform will conclude its fundraising effort on Feb. 25, unless it hits the target before that date.
In all seriousness, please don’t send funds to this platform. Investors who do are unlikely to see their bitcoin again.
“What this Bakkt” and bitcoin address signup screenshots from bakktplatform.io
When people talk about luxury electric vehicles, Tesla is inevitably the first brand that comes to mind. Refusing to be outdone by this relatively new kid on the block, storied American auto company GM plans to steal Tesla’s thunder by outfitting its legendary Cadillac with EV technology.
GM CEO Mary Barra discussed the automaker’s electric vehicle efforts Wednesday during the company’s full-year 2018 earnings call. She also discussed other endeavors involved in increasing its presence in the EV market, including a partnership it inked with a food delivery service.
This comes as Tesla’s woes over producing its vehicles are constantly making headlines. For GM, this could be an excellent opportunity to swoop in, especially with the Caddy. GM has made it clear that it will use the Cadillac brand to compete with Tesla, CCN recently reported.
Bringing Cadillac Into The 21St Century
Cadillacs have long been symbols of status, wealth, and class. There used to be a time when driving one would guarantee that you would turn heads.
Unfortunately, GM’s competition heated up, as just as attractive — and cheaper — vehicles rolled off assembly lines.
Then, Tesla upped the ante with its sleek cars that ran on batteries. Others automakers have jumped into the EV market, but Tesla continues to shine as the leader — for now, anyway.
Barra’s working to change that. During the conference call, she said:
“Last month, we announced that [the Cadillac] will be GM’s lead electric brand where we introduce our next generation EV technology. Through technology innovation and beautiful design, we’re fully committed to restoring Cadillac to the luxury leader it should be.”
Last year, Cadillac posted another record year of global sales, according to Barra. That growth is expected to continue as GM plans to introduce new models in rapid-fire fashion through 2021. Barra said plans call for the models to come out roughly every six months.
GM Aims to Succeed Where Tesla Has Faltered: Selling Cars
To put it bluntly, the main issue Tesla has had with its vehicles is selling them.
More specifically, the steep price tags make them unaffordable to the many consumers who’d love to own one.
In response, Tesla says it’s revamping its business strategies. For example, last month it announced it was making good on its promise to phase out the 75kWh Model S and Model X versions. It’s started to sell these models only with the long-range 100kWh battery packs, CCN reported.
The company is also making moves to increase international sales. Beginning this month, Tesla will be able to sell the long-range version of its cheaper Model 3 in Europe.
GM officials also are recognizing how to tap the market of consumers who can’t afford high-priced EVs. Its Cruise EV is an alternative. Another strategy GM is employing is working with partners. Tesla is not making such moves — at not least in public.
“We have demonstrated our willingness to work with partners with common value and where a partnership can improve efficiency, capital spend and speed of development. For example, our AV collaboration with Honda builds on our existing EV battery and fuel cell work.”
Barra also said GM is trying to encourage greater consumer acceptance of battery-powered vehicles. She noted that, in January, GM announced the collaboration with three partners to establish the largest collective EV charging network in the United States.
However, the revamped electrical vehicle efforts are going to take some time to pay off for GM. When asked when the company would turn a profit from these EV rollouts, Barra said:
“I would say early next decade, but I wouldn’t put any more specificity on EV profitability than that.”
With a company as massive as GM making that large a commitment to cutting into Tesla’s market share, Elon Musk had better watch his back.
Featured Image from Shutterstock. Charts from TradingView