After meeting with General Motors' (GM) CFO and discussing, among other things, the company's electric, autonomous, and ride-sharing strategy, JPMorgan analyst Ryan Brinkman told investors that he is more concerned that Tesla (TSLA) will have a difficult time realizing its profit objectives in the increasingly competitive market for electric vehicles.

BOLT TO COMPETE WITH MODEL 3: In a research note this morning, JPMorgan's Brinkman reiterated an Overweight rating on General Motors shares after meeting with the company's CFO Chuck Stevens and test driving the new Chevrolet Bolt EV. Commenting on the new Bolt and General Motors' electric, autonomous and ride-sharing strategy, Brinkman noted that the company is first to market amongst all automakers globally with a "modestly" priced battery electric vehicle with substantial range. Moreover, the analyst pointed out that GM plans to extend the Bolt beyond sales to consumers and into ride-sharing applications, including of the autonomous variety. Brinkman told investors that the Bolt represents "solid competition" for the upcoming Tesla Model 3 at a time when the electric vehicle pricing model is challenged with a number of automakers chasing a still limited number of vehicle customers. Further, the analyst said he expects it to become "increasingly more difficult" for Tesla to profitably compete against an improving array of electric vehicles from automakers which are pricing with the aim not to turn a profit but rather to sell in sufficient volume to subsidize the rest of their more lucrative portfolios of internal combustion engine vehicles from a regulatory compliance perspective. Brinkman reiterated an Underweight rating on Tesla's shares.

GM PROFIT GROWTH SEEN IN 2017: Turning back to GM, Brinkman noted that Stevens provided initial thoughts on 2017 that suggest another year of profit growth, helped by cost performance efforts and improved results at GM Financial and in South America, the analyst also said that the macro backdrop in North America seems to continue to support the company's view that sales are likely to plateau at the presently strong level. GM North America should benefit in 2017 from a slew of entirely new offerings in the faster selling and more profitable crossover utility market, Brinkman also pointed out. Further, General Motors' best guess is that the Chinese government keeps in place in 2017 one-half of the sales-spurring tax incentives currently set to expire at the end of 2016, supporting continued strong equity income, he contended.

PRICE ACTION: In morning trading, shares of General Motors have gained 1.7% to $37, while Tesla's stock is fractionally down to $192.11 per share.