3 ms·
Some companies will literally sell products for less than the cost of the components that go into them. Sometimes that's a supermarket selling 'loss leaders' t
by michaelt 3y ago
Some companies will literally sell products for less than the cost of the components that go into them.
Sometimes that's a supermarket selling 'loss leaders' to get people into the store where they'll hopefully buy other things - or a games console manufacturer planning to make up the loss because they get paid for every game sold.
Other times a manufacturer wants to hit a promised launch date, and hopes to get manufacturing costs down later. Maybe they haven't had time to set up certain cost-saving automation, or a planned lower-cost component wasn't ready in time for launch. Maybe their widget supplier has promised a lower cost when they're ordering 10,000 a month but right now they're only ordering 500 a month.
Of course, without access to insider information we can only guess if this is really occurring...
- andsoitis 3y ago> Some companies will literally sell products for less than the cost of the components that go into them. But that is not what Tesla is doing, is it?
- ripjaygn 3y ago> Of course, without access to insider information we can only guess if this is really occurring... No need to guess, the GP poster confidently stated this: > Tesla is losing money on every truck sold at this point. They must be an insider or have reliable insider information.
- vengefulduck 3y agoOf course, this is the only explanation. No one can just make stuff up on the internet. That’s impossible.