Legacy automakers are still losing thousands of dollars on many EV sales, according to newly published analysis from the Boston Consulting Group.
BCG estimates that most automakers lose around $6,000 on each EV they effectively sell for $50,000, that price accounting for any tax credits or other incentives the customer might be eligible for.
Automakers will only be able to close about half of that cost gap with technology choices, BCG estimates. Economies of scale created by ramp-ups of EV production will help, but won’t completely close the gap either, according to analysts, adding that this could be a problem for legacy automakers in the U.S. market if heavily-subsidized Chinese EVs ever break through here.
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“Closing the cost-profitability gap will require help from elsewhere, whether through more aggressive efficiency programs,…
Read full article originally published on www.greencarreports.com