EV Price Wars Thread
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I'm sorry Amirza, I just know nobody likes paying ADM's or over MSRP but they really are if or when mfg lowers price. IMO
PS- not trying to rub it in anyone, I've overpaid too like everyone else at one time or another.
I saw that too and thought it was brilliant cuz we know that's exactly what would happen or was supposed to happen... aka... we all pay for the gap and lack of their profit... duh... thank you Elon!
Now they better get crackin' and make their cars more cost effective or don't play. lol
You know it's true.
They do it over and over, writing is on the wall.
It would be better just to let them make the parts but do not let them make the whole car, they will reverse engineer and copy everything about it. IMO
No wonder their keisters are puckered.
That's major blood letting, good lord.
How long can that be sustained I don't know.
PS- not trying to rub it in anyone, I've overpaid too like everyone else at one time or another.
Now they better get crackin' and make their cars more cost effective or don't play. lol
This goes to show how quickly chinese EV makers are adopting Tesla tech. How much longer do you think Tesla have until it gets kicked out? Whatever volume and jobs Tesla provides now and lost can be absorbed by growing chinese domestic manufacturers. As a matter of fact, they would want them for the expertise gained while working at Tesla.
They do it over and over, writing is on the wall.
It would be better just to let them make the parts but do not let them make the whole car, they will reverse engineer and copy everything about it. IMO
No wonder their keisters are puckered.
That's major blood letting, good lord.
How long can that be sustained I don't know.
Thread Starter
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"On the earnings call, Ford reiterated that first-gen EVs will approach contribution margin break-even status by the end of this year, EBIT profitability by the end of next year, and the Ford Model e segment is targeting an 8% EBIT margin by late 2026."
https://finance.yahoo.com/news/ford-...201822810.html
https://finance.yahoo.com/news/ford-...201822810.html
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Correct me if I'm wrong, but aren't price drops good for the consumer? Especially when they create price wars? How many times have we heard "I refuse to pay MSRP or above MSRP?" Well doesn't that hurt dealerships? And lastly, should Tesla be held responsible if other automakers lose money and can't compete?
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Ford is spending a lot of money on new EV factories, an EV battery facility plus R&D for the next-gen EV portfolio. They forecast these losses as part of the separation into three divisions and are broadly operating to plan for the Model e division.
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And Tesla chose to build its own charging networt on top of the factories. Everyone else is depending on you and me, the tax payers, to help fund a charging network.
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Can someone explain contribution margin break-even status sounds like a BS way to make losses look better.
Last edited by LeX2K; May 5, 2023 at 10:22 AM.
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Well yes, but Tesla has also taken taxpayer dollars to build out its charging networks - both federal and state - and the largest competitive network (Electrify America) was directly funded by VW as part of their Dieselgate settlement. There's more overlap here than maybe meets the eye.
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My understanding is, the Mach E loses about $5K per vehicle; I have not read about a dollar figure for the Lightning.
Contribution margin is the difference between revenue and variable costs. The final component of break-even analysis, the break-even point, is the level of sales where total revenue equals total costs. At this point no profit is made and no loss is incurred.
The contribution margin speaks to the amount of revenue required to cover a fixed costs and contribute to its profit. As production increases, fixed costs are spread over more units improving overall margin numbers.
Basically, within the relavant range, higher production increases contribution margin. This is cost accounting, perhaps my favorite part of finance.
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