Electric vehicle sales cost Ford and other automakers

Automakers across the country have poured millions of dollars into electric vehicle strategies in recent years. Whether it's developing a new product, engineering to create a lighter, more powerful motor, or investing in a new factory, we all spend a small amount of money. It turns out that EV manufacturers across the country are now reportedly losing thousands of dollars on every car they sell, and that those costs may not be paying off.

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U.S. automakers lose about $6,000 for every $50,000 worth of EVs sold in the U.S., according to a new report from analyst firm Boston Consulting Group (BCG). This number comes on the heels of similar huge losses by companies like Rivian and Lucid. Earlier this year, Rivian revealed it was losing $33,000 on every truck it sold, but Lucid eclipsed that number with a staggering $400,000 loss on every car it sold. Wow.

Rather alarmingly, the BCG report warns that these losses are likely to continue all the way to the next generation of electric vehicles, which are likely to be cheaper and more efficient. The report explains:

We also estimate that even if OEMs choose the right technology, they can only close half of this cost gap. Economies of scale from automakers increasing production also help, but they can't make up the difference. Additionally, the impact of impending imports from China must be considered. Market prices are likely to contract further, further exacerbating profitability challenges. At some point, it will become unbearable for an OEM company to lose money on every vehicle it sells.

This is a pretty damning insight into the electric vehicle market across America, and explains why companies like Ford are reportedly changing tack and switching from large, expensive EVs to smaller, cheaper models. I may be able to do it.

Rivian loses $33,000 on every truck it sells.Photo: Rivian

This could help actually start producing the kind of electric vehicles that American drivers want, and this was another area the BCG report examined. According to the paper, there is only one car currently on sale in the U.S. that can handle the next wave of EV adopters.

These customers want a car that costs less than $50,000 and can travel more than 350 miles on a single charge. Is it the only car that can manage it? Of course, it's the Hyundai Ioniq 6 RWD Long Range. Other models like the Rivian R1S have a longer range but don't come close to the price, while cars like the Chevrolet Volt have a shorter range but a much better price.

With an attractive price and enough range to take you from Birmingham, Alabama to New Orleans, is that all you need to make the switch to an EV? Or is there another little charm to owning your first EV? do you have?

A version of this article originally appeared on Jalopnik.

Sources 1/ https://Google.com/ 2/ https://qz.com/electric-car-losses-rivian-lucid-1851361758 The mention sources can contact us to remove/changing this article

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