Comment on Fear of cheap Chinese EVs spurs automaker dash for affordable cars
Maggoty@lemmy.world 6 months agoSelling at a loss to enter a market or gain market share is a time honored tradition at this point.
Comment on Fear of cheap Chinese EVs spurs automaker dash for affordable cars
Maggoty@lemmy.world 6 months agoSelling at a loss to enter a market or gain market share is a time honored tradition at this point.
Hyperreality@kbin.social 6 months ago
It is, but as the article mentions some manufacturers are making a loss of 35k per car.
If those cars are then sold for 5k less than the US/EU/Japanese equivalent, you have to ask yourself questions.
Maggoty@lemmy.world 6 months ago
Yes you just described the business model. Everyone from Walmart to Amazon to Uber uses it. They take a loss in the short term, relying on new investor money or other products.
Corkyskog@sh.itjust.works 6 months ago
Or they could be building economies ot scale? You can’t drive down costs making thousands, you need to make millions.
Maggoty@lemmy.world 6 months ago
That’s possible too. It’s not like the US doesn’t give businesses loans and grants for upscaling.