
the staff of the Ridgewood blog
Ridgewood NJ, automakers throughout the United States have invested substantial sums into their electric vehicle (EV) strategies in recent years, channeling funds into various aspects such as new product development, engineering advancements for lighter and more powerful motors, and the establishment of new manufacturing facilities. However, despite these hefty investments, it appears that the cost may not be yielding favorable returns, as EV manufacturers across the nation reportedly face significant losses with each vehicle sold.
According to a recent report by analyst firm Boston Consulting Group (BCG), U.S. automakers incur approximately $6,000 in losses on every $50,000 EV sold in America. This revelation follows similar substantial losses reported by companies like Rivian and Lucid. Rivian disclosed earlier this year that it suffered a loss of $33,000 on each truck sold, while Lucid surpassed that figure with an astonishing $400,000 loss per car sold.
The BCG report cautioned that these losses are likely to persist even as the industry transitions to the next generation of supposedly more affordable and efficient electric cars. The report suggests that despite advancements in technology and the potential benefits of economies of scale as production volumes increase, these factors alone may not suffice to close the cost gap. Furthermore, the impending influx of Chinese imports is expected to further drive down market prices, exacerbating the profitability challenge for automakers.
This insight sheds light on the challenges facing the electric car market in the United States and may explain the shift in strategy by companies like Ford, which are now focusing on smaller and more affordable EV models.
Additionally, the BCG report delved into consumer preferences, revealing that there is currently only one EV on the market in the U.S. that meets the demands of the next wave of EV adopters. These consumers seek a vehicle priced at $50,000 or less with a range of 350 miles or more on a single charge. Interestingly, the Hyundai Ioniq 6 RWD Long Range is the sole car that meets these criteria, while other models like the Rivian R1S excel in range but fall short on price, and cars like the Chevrolet Bolt offer competitive pricing but lack sufficient range.
Ultimately, the availability of affordable pricing and ample range may be the decisive factors for consumers considering the transition to an EV.
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You know, most of us understand the electric vehicle to an extent, but don’t jam it down our throats that we have to buy that car. It’s just not working out. It’s just amazing how many people are just so brainwashed over the Electric. It’s a great idea, but maybe For 40% of the population not everyone.
Whether you want it or not is besides the point. As are the manufacturer’s “losses.” It’s no different than all the woke Hollywood/Disney products that continue to bomb but nevertheless continue to be pushed.
It’s really no sayings, the cars are expensive, the tax breaks really not worth it. And electricity and maintenance batteries are expensive, you still have to buy tires brakes a few other things I just don’t see the savings.
No tax break on resales. The first owner gets the break. Second owner? Not so much. The do get a battery that will have to be replaced at greater than… $___, no one will say. It’s sort of like residential and commercial solar panels. The only one making money on the technology is the guy selling it to you.
And whatever happened to the Village Of Ridgewood purchasing electric trucks I guess that’s out the window
Look at What happened today with electric vehicles prices? Are being slashed.
Ford just announce layoffs for the plant building the electric F-150 Lightening