Can You Make an Electric Car Without Losing Billions?

Can You Make an Electric Car Without Losing Billions?

https://reddit.com/r/electricvehicles/comments/xahtmb/can_you_make_an_electric_car_without_losing/
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https://www.bloomberg.com/opinion/articles/2022-09-08/can-tesla-rivian-lucid-arrival-make-electric-cars-without-losing-billions


Can You Make an Electric Car Without Losing Billions?



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4 thoughts on “Can You Make an Electric Car Without Losing Billions?

  1. Contrary to Betteridge’s Law, the answer here is “yes”.

    The better question is, “can you refuse to switch your production from ICE to BEV without failing out of the market?”

    Note that Tesla is currently somewhere in the order of $10B in debt as a result of their extremely aggressive expansion. This isn’t money they owe on materials bought, but credit raised to fund the construction of factories. In 2021 Tesla paid off $1B in loans.

    Anyone trying to portray $11B in debt as “losing billions” simply has no clue how money works, or is desperately trying to cast shade, which is understandably difficult for Bloomberg given that in this market segment they are stumbling around in the dark without a torch.

  2. If you make it with digital models, you can avoid a lot of costly design changes later on in development and bring it to market quicker. Then pay someone who already has the manufacturing and tooling capabilities to make it for you. It’ll be a low production vehicle, but you won’t blow billions on it.

  3. Bloomberg doesn’t seem to get how capitalism works to build highly complex industrial products like EV’s, which are no different than other complex industrial products like computer chips. Large upfront costs that get spread over 27.5 years.

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