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Originally Posted by Rainger99
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 |
It is quite simple.
Make your total cost at any point you want, but the maker has a plan for a quantity that will recover the development cost, incremental item cost and profit.
That may not work on government projects since profit is not their goal.