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The thing is, its expensive to make EV. Most manufacturers make negative money when they sell them, or at least don't have good margin. Also, the amount of bat
by nickik 6y ago
The thing is, its expensive to make EV. Most manufacturers make negative money when they sell them, or at least don't have good margin.
Also, the amount of battery capacity that currently exists is nowhere near where it needs to be. Most manufactures now try to expand and secure supply, but supply growth is simply not growing fast enough for large companies to switch to EV fast.
Tesla doesn't have a smaller car because even for them making a smaller car would mean that compared to other smaller cars it would be massively expensive. They have to further improve cost to be able to make a competitive small car. ICE industry had 100+ years to reach the scale it has.
- yardie 6y agoWhich is why most governments issue tax incentives and credits to induce demand. If you removed the tax credits EVs would be a negative even for Tesla.
- 1958325146 6y agoIn the US, Telsa no longer receives any federal tax credit as of January 2020. A few states (including California) still have incentives. In any case, losing the tax credit doesn't seem to have slowed them down.
- nickik 6y agoYou only get 250k of tax credits, and both Tesla and GM have already used them. Ford still has some. To make money with EV you need to produce way more then 250k of cars, so you can absolutely not relay tax credits to improve margins. Also, Tesla is now competing successfully without tax credits against many companies who still have theirs. Tesla is actually making a pretty good 20% automotive margin, and that is with Model Y still being a small part of sales (and we know that Model Y has better margin).