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Originally Posted by 1bad65
How are they getting any dimes back from the project by selling the cars at a loss?  |
As DG has already said, it's simply a high-risk decision to sell this car. It could make money for them in the long run, due to increased public opinion and manufacturing advancements to cut costs on the vehicles (not to mention a possibility of the targeted audience increasing).
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That's not always true. Coke used the same formula for decades, and they were the #1 soft drink for all those years. But when they took a risk and tinkered with the time proven formula, they lost tons of money and market share.
Businesses just need to make SOUND decisions to prosper. And selling electric cars at a loss to the company is not a sound business decision in my opinion. Time will tell who is right about this car. I'm confident I won't be wrong by predicting it will be a flop. After all, I have history on my side, as the American public has never demanded (or even wanted) electric cars in big enough numbers to make selling them a profitable venture.
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Coke's high-risk decision simply didn't pay off, just like most high-risk decisions will not. In an emerging market, it really is all risk (look at Ford back in the early 1900s). Economic statistics refer to the past, and as such does not mean that this regularity must happen again in the future. Consumer demand is always changing.