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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It does “ increased costs related to new product development and production-capacity expansion” and that makes perfect sense. They are expecting profitability a few years down the road.