There are two scenarios: 1. Each car costs $33k more to make than it sells for. Marginal cost > marginal revenue. Selling more cars will hurt the business. Qui

There are two scenarios: 1. Each car costs $33k more to make than it sells for. Marginal cost > marginal revenue. Selling more cars will hurt the business. Quite dramatic, basically nothing can be done. 2. Each car costs less than it sells for. Marginal cost < marginal revenue. But the business overall is making a loss, equivalent to $33k times cars sold due to fixed costs. Selling more cars helps the business. Less dramatic, business as usual for a company that can only be profitable at scale, nothing new. Headline says #1, but I really doubt it’s #1.