Ford's Model e division is now losing over $100,000 per EV sold. As a result, the carmaker is looking to scale back EV production, according to industry insiders who claim Ford has cut back on battery orders significantly.
Buying and running the tools it takes to make the EV, running the factories and training the workers are all very expensive. So the losses implies they projected a LOT higher volume than they’re currently producing so all the expensive equipment sitting idle is spread over the smaller volume of cars. These are called NRE (non-recoverable expenses).
The problem they have is they’re trying to sell it for 200k. Maybe they didn’t try and sell it to so much money they’d actually make money paradoxically.
Buying and running the tools it takes to make the EV, running the factories and training the workers are all very expensive. So the losses implies they projected a LOT higher volume than they’re currently producing so all the expensive equipment sitting idle is spread over the smaller volume of cars. These are called NRE (non-recoverable expenses).
So the losses are not production losses, but a complete failure in the projection? OK, quite possible.
The problem they have is they’re trying to sell it for 200k. Maybe they didn’t try and sell it to so much money they’d actually make money paradoxically.