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Capacity is a laggy function of demand and finance, if demand goes up then a smart manufacturer will increase capacity.
by LeifCarrotson 4y ago
Capacity is a laggy function of demand and finance, if demand goes up then a smart manufacturer will increase capacity.
- vinyl7 4y agoAnd eventually when capacity meets demand, and demand falls (there isn't an infinite demand for cars like there is for something like food)...you have a bunch of useless factories that probably haven't earned back their investment yet.
- actually_a_dog 4y agoImagine that: we can’t solve a problem created by capitalism by doing more capitalism. Who’da thunk it?
- _ea1k 4y agoAs true as that is, it takes ~2 years to get a battery plant from shovels in the ground to decent volumes. It won't take long, but 2025 is probably the first year to see anywhere close to demand satiation for EVs, and even then it may only be in some segments.