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To: Red Badger

These are the same idiots who said that Tesla’s business plan could never work. The reality:

Energy is going green IN SPITE of regulation, not because of it. It didn’t go green in the last 80 years, because the technology isn’t there. Now that the technology comes from non-government sources after a century of statist meddling, the statists are desperate to say, “we did that!”

When you read that a car costs $220,000 but sells for $80,000, what they really mean is that all of the expenditure to bring the car to market divided by the number of cars ALREADY sold is $220,000. If you’re trying to see whether Ford should continue to make electrical cars, you need to ask what the cost of the NEXT car is. That won’t tell you whether overall it was a good investment by Ford, whether if you could go back in time, you should tell Ford to skip it. But it does say that GIVEN THE ALREADY SUNK COSTS, Ford should continue.

But Tesla suggests that HOLY COW! you can make huge profit margins to pay off those sunk costs quickly.


13 posted on 03/28/2023 5:56:06 AM PDT by dangus ( )
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To: dangus
When you read that a car costs $220,000 but sells for $80,000, what they really mean is that all of the expenditure to bring the car to market divided by the number of cars ALREADY sold is $220,000. If you’re trying to see whether Ford should continue to make electrical cars, you need to ask what the cost of the NEXT car is.

Yup. I can't recall who said it, and I'm paraphrasing, but it was a newspaper magnate decades ago who said the first print is expensive, the rest are just cost of materials.

61 posted on 03/28/2023 7:28:34 AM PDT by IYAS9YAS (There are two kinds of people: Those who can extrapolate from incomplete data.)
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To: dangus

No such thing as green energy, climate change “crisis” and CO2 is evil. They are all one big hoax.


84 posted on 03/28/2023 11:59:59 AM PDT by central_va (I won't be reconstructed and I do not give a damn...)
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