Quote:
Originally Posted by mtdjed
While definitely not an EV fan, I believe you must use care in using data like the above. It likely does not mean that each new EV car costs Ford $32,000 more that the sell price. I would strongly suspect that number reflects the incremental cost of each new EV plus a share of the huge developmental cost incurred based upon dividing development costs by quantity sold.
You have to expect that companies don't blindly sell at a price below incremental cost. They may have a plan the shows recovery of development costs within a projected sales volume. Sales lagging that projection could be a major problem.
My only caution is that use the term loss of $32,000 may have a different meaning.
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I don’t understand the accounting details but I would assume that the EV is a separate division and that the costs are x and the income is y. The costs clearly exceed the income so you divide the losses by the number of vehicles sold to determine the loss per vehicle.
But perhaps we have some people who worked in the automotive industry that can explain how these losses are calculated.
Even NPR says that Ford is losing money on EVs.
Ford's CEO is staking its future on electric cars : NPR