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It's also worth mentioning that the Bolt is a loss leader for GM, so they are actually losing money on those cars. I think it's reasonable to worry that the ec
by Judgmentality 9y ago
It's also worth mentioning that the Bolt is a loss leader for GM, so they are actually losing money on those cars. I think it's reasonable to worry that the economics for Tesla, who have far less experience manufacturing cars at scale, could be even worse.
I am bearish on Tesla, but I never thought they would get this far, so obviously I've been wrong before. My suspicion though is if Tesla isn't self-sustaining before the next economic downturn, they're fucked.
- jagger27 9y agoI think most Bolts are leases, so it probably works out in the end for GM.
- nradov 9y agoWorks out how? Bolts are compliance vehicles, sold by GM to meet fleet fuel efficiency and emissions requirements. Selling Bolts at a loss enables them to continue selling larger vehicles which actually turn a profit. Hopefully in a few more years battery costs will drop enough to make electric cars profitable in their own right.