GM’s electric vehicles may be operating at a loss now, but the company’s CFO, Paul Jacobson, sees a profitable future ahead. He predicts that by the second half of next year, these vehicles will begin to generate profits.
atwob
I'm not exactly sure what that'll mean, but I hope that doesn't mean prices are going to go up to offset costs.
The "Oh no, we lose money on every EV we sell!" is such a load. Look, any new vehicle has R&D costs. That gets rolled into the "cost". First year vehicles absorb all of that. That's why there were news stories about Volts costing 49K to build... yet GM kept making them for years. Crazy, right? Just think about it. Say a typical car costs $20K to build in parts. If you spend a million to develop a fancy new engine and then only make 10 special editions of it, those cars cost $120K (1 million R&D/10 + 20K parts) each and the news blasts you for making this insane money losing atrocity that only the Elite can afford. The next year, if you build 10K of them, they only cost you $20,100 to build (1 million R&D/10,000 + 20K parts) and you're heralded as magically making an affordable technically advanced vehicle for the masses.
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