Maggoty comments on Fear of cheap Chinese EVs spurs automaker dash for affordable cars

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[–] Maggoty@lemmy.world 18 points 2 years ago (1 child)

Selling at a loss to enter a market or gain market share is a time honored tradition at this point.

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[–] Hyperreality@kbin.social 2 points 2 years ago* (1 child)

It is, but as the article mentions some manufacturers are making a loss of 35k per car.

If those cars are then sold for 5k less than the US/EU/Japanese equivalent, despite lower wages and environmental standards, you have to ask yourself questions.

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[–] Maggoty@lemmy.world 12 points 2 years ago (1 child)

Yes you just described the business model. Everyone from Walmart to Amazon to Uber uses it. They take a loss in the short term, relying on new investor money or other products.

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[–] Corkyskog@sh.itjust.works 4 points 2 years ago (1 child)

Or they could be building economies ot scale? You can't drive down costs making thousands, you need to make millions.

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[–] Maggoty@lemmy.world 4 points 2 years ago

That's possible too. It's not like the US doesn't give businesses loans and grants for upscaling.

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